Zero GST on Sanitary napkins won’t help

The government has at last declared that there would be no GST levied on sanitary napkins. The government’s decision has come after huge protests from various sections of the society who term the taxation as a harsh step on women. However, the reality seems to be bit different. Experts say that the decrease of GST would not at all pave way to the reduction of Sanitary napkins price. Further it might even hike the prices. Here is the simple logic. Previously, if a manufacture sold the napkins for 100 rupees, a 12 rupees GST used to add up the MRP. Half of the GST (six rupees) will be paid back to the manufacturer. Now the manufacturer has to sell the napkins only for 100 rupees meaning that he won’t be receiving the extra six rupees as earlier. This would certainly be a loss to the manufacturers! Further it’s feared to increase the napkins from China!