GST on Sanitary Pads in India: Current Tax Status

Sanitary pads are a basic necessity for women. But for a long time, they were taxed just like luxury goods under GST. After much public debate and demand, the government revised its stance. In this blog, we explain the current gst on sanitary pads, how it changed, and what it means for consumers and businesses.

BOOK A FREE DEMO




    Was GST Ever Applied to Sanitary Pads?

    Yes. When the Goods and Services Tax (GST) was first implemented in July 2017, sanitary pads were taxed at 12%. This move was criticized heavily by health activists, women’s groups, and the general public, as it treated a basic hygiene product as a taxable item.

    What Is the GST Rate on Sanitary Pads Now?

    Currently, the sanitary pads GST rate is 0%.

    This change was announced in July 2018, when the GST Council decided to exempt sanitary pads from GST altogether. This was done to make menstrual hygiene products more affordable and accessible.

    So if you’re buying or selling sanitary pads:

    • No GST is charged
    • No input tax credit (ITC) is allowed to manufacturers on raw materials

    Get a Free Trial – Best Accounting Software For Small Business

    What Does This Exemption Mean?

    Before July 2018 After July 2018
    12% GST on sanitary pads 0% GST (completely exempt)
    Input Tax Credit allowed No Input Tax Credit
    Higher retail price Reduced cost to end user

    While the 0% GST is good news for consumers, manufacturers can no longer claim ITC on the materials (like plastic, gel sheets, and packaging), which still attract GST. This sometimes offsets the benefit of the exemption on the final pricing.

    Get a Free Demo – Best Billing and Invoicing Software

    Impact on Pricing and Businesses

    • Consumers: Pay less or no GST at all on sanitary napkins, which helps affordability.
    • Retailers: Sell sanitary pads without adding GST to the bill.
    • Manufacturers: Pay tax on raw materials but cannot claim input credit, which may impact profit margins.

    Conclusion

    The exemption of GST on sanitary pads was a positive move for women’s health and affordability. While sanitary pads are now taxed at 0%, challenges remain for manufacturers due to the lack of Input Tax Credit. Still, for the end consumer, this change ensures easier access to a critical hygiene product.

    Frequently Asked Questions (FAQs)

    • What is the current sanitary pads gst rate?
      The current GST rate is 0%. Sanitary pads are fully exempt from GST.
    • When was the tax removed?
      The GST on sanitary napkins was removed in July 2018, following a decision by the GST Council.
    • Do businesses charge GST on sanitary pads now?
      No, they are not allowed to charge GST on sanitary pads as the product is fully exempt.
    • Is there GST on raw materials used in sanitary pad manufacturing?
      Yes, materials like plastic, adhesive, and packaging materials still attract GST, usually at 12% to 18%.
    • Can manufacturers claim input tax credit?
      No, because the final product (sanitary pads) is exempt from GST, ITC cannot be claimed.
    Please Wait

    BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.

    phone Sales & Support:

    +91 82 82 82 82 82
    +91 11 - 4096 4096