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No disservice to tax items used by disabled

The Centre on Tuesday said that 5 per cent tax on products used by disabled under Goods and Services Tax is not a “disservice” but will help to bring down their prices as  it will offset high taxes on their  raw materials which is 18 per cent in most cases.

As the final consumer tax on these products is lower than the tax on inputs, a domestic manufacturer can claim refund, revenue secretary Hasmukh Adhia said adding if the GST tax rate was zero it would have meant that domestically manufactured equipment would have been un-competitive as compared to imports.

The Centre said that “concessional” 5 per cent GST rate on such devices/ equipments would enable their domestic manufacturers to avail input tax credit of GST paid on their inputs and raw materials which attract 18 per cent tax. 

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