The Delhi High Court on Monday issued notice to the Government of India, Delhi Governemnt, New Delhi Municipal Council (NDMC) and Municipal Corporation of Delhi (MCDs) on a PIL filed to ensure availability of sanitary pads for free or at subsidized rates.
The court has also directed to conduct workshops on menstrual hygiene for school girls.
The next date of the hearing is on November 7.
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 and result in even higher accumulated input tax credit (ITC), with correspondingly higher financial costs on account of fund blockage and associated administrative cost of refunds, putting domestic manufacturers at even greater disadvantage vis-a-vis imports.
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