In the 28th GST council meeting, it was finally decided to waive off the GST on sanitary pads and now they will not be taxed under the GST. But one must not be confused with the actual impact on the sanitary pad.
Even if the tax rate on sanitary pads is now 0 per cent, there is no much of difference and to be exact 3 rupees approximately. Logically the 0 per cent GST rate doesn’t help if ITC isn’t offset.
The consumer can now logically remind himself that if in case the retailer had paid all the input cost and determined to make the exact profits which he was making earlier, there are very lesser chances of a product getting cheaper.
The GST on input materials such as 18 per cent (absorbent polymer, glue) and 12 per cent (pulp, release paper) is there which will keep the prices as same as previous.
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However, the rate cutting had done one good thing, the GST on transferring sanitary pads i.e. wholesalers to retailers and retailers to the final consumers is not to be paid.
Still one can say that the prices are down but with a meagre per cent, just for an example, an average selling price of sanitary pads are INR 112 which after deducting the so-called GST rate reduction, comes only at INR 109 according to given calculations.
