NNWM/ New Delhi , 2017-07-17

 For protesting women activists against HST on sanitary pads,, this may have come as a sigh of relief. The Delhi High Court on Monday issued notice to the Central government, Delhi Governemnt, New Delhi Municipal Council (NDMC) and Municipal Corporation of Delhi (MCDs) on the issue of sanitary pads for free or at subsidized rates post GST.

Hearing a Public Interest Litigation,, PIL, The court has  directed to conduct workshops on menstrual hygiene for school girls. The next date of the hearing is on November 7. Women activists have opposed the 12 per cent GST on sanitary napkins. The finance ministry has clarified that sanitary napkins attracted a Goods and Services Tax (GST) of 12 per cent, a shade lower than 13.7 per cent in the previous indirect tax regime. Clarifying on reports of tax incidence on sanitary napkins under GST, a finance ministry statement said, "The tax incidence on this item before and after GST is the same or less." In pre-GST, they attracted concessional excise duty of 6 per cent and 5 per cent VAT. The total tax incidence on sanitary napkins was 13.68 per cent after considering cesses. "Therefore, 12 per cent GST rate had been provided for sanitary napkin," it said.

Raw materials used for manufacture of sanitary napkins attract GST of 12 per cent and 18 per cent. If the GST rate on sanitary napkins was reduced to 5 per cent, it will further accentuate the tax inversion.