? Cool Title, but what’s the news?
Refrigerator, washing machine, small screen TV, storage water heaters, paints and varnishes, will attract 18% GST as against 28% at present, while sanitary napkins have been exempted from the levy.
? Okay, but what does it mean?
The highest tax bracket of 28% has been rationalised further with rates on daily-use items like perfumes, cosmetics, toiletries, hair dryers, shavers, mixer grinder, vacuum cleaners, lithium ion batteries, being lowered to 18%. The revised tax rates will come into effect from 27 July. Also, the tax rate on supply of e-books has been cut to 5% from 18%.
? Why should I care?
Sources, however, said the tax rate reduction is likely to cost around ₹8,000-10,000 crore annually to the exchequer.