The Union Finance Ministry in consultation with the GST Council took major decisions today. The GST Council, headed by Finance Minister Piyush Goyal has cut tax rates on over 60 products. The new rates will come into effect from July 27.

"The exercise is to ensure simplification and rationalisation of Goods and Services Tax, or GST and extend relief to the common man," Piyush Goyal said.

In a tweet Goyal added, "GST Council today approved reduction in rates of 88 goods and services. Money in the hands of all sections of society - the poor, households, women, farmers and senior citizens."

Key decisions taken by GST Council

  • Quarterly returns have been approved for taxpayers with turnover less than Rs 5 crore. Tax payments will continue on a monthly basis.
  • Sanitary napkins have been exempted from GST following a year-long demand by several activist groups.
  • No decision has been taken on 1% sugar cess.
  • The GST on bamboo flooring has been reduced to 12%.
  • GST on hotels would now be on actual tariff and not declared tariff.
  • Ethanol for oil marketing companies will now be available at 5% as against 18% tax earlier.
  • The 5% GST ceiling on footwear has been raised from Rs 500 to Rs 1000.
  • The GST on paints & varnishes, wall putty cut from 28% to 18%.
  • The GST on all leather items has been reduced from 28% to 18%.
  • The GST on consumer electronics ― TV (up to 27"), washing machine, refrigerator, mixer, juicer, grinder cut from 28% to 18%.
  • The GST on special purpose vehicles, work truck, trailer cut from 28% to 18%.