The directorate general of anti-profiteering has been directed to keep a tab on manufacturers of sanitary napkins so that benefits of GST rate cut are passed on to consumers. This was stated by the Finance Minister Piyush Goyal in New Delhi today.
The GST council, chaired by Union finance minister and comprising state counterparts, last week exempted sanitary napkins from GST levy. It was earlier in the 12 per cent slab.
There have been reports that sanitary napkins will not benefit from the exemption from GST since they will not be able to claim credit on raw materials used in manufacturing.
Under the Goods and Services Tax (GST) law, the directorate general of anti-profiteering investigates complaints against manufacturers, dealers and traders for not passing on tax rate cut benefits in the form of price reduction to consumers.