GST Council: E-Way Bill, Rate Cuts, Textile Sector Relief And A Message To India Inc.
The GST Council decides to implement the e-way bill system
In its 20th meeting the GST Council decided to implement the e-way bill system, discussed the anti-profiteering provision and cut rates for 19 items.
In a media briefing after the meeting Finance Minister Arun Jaitley said the e-way bill system will be technology driven and will apply to goods consignments of above Rs 50,000. He added that e-way bills will not apply to goods exempted under GST.
The date of implementation of the e-way bill system will be notified.
Exemption from e-way bill for exempted products or transportation within 10 km provides some relief to the industry. However, for real benefit of GST to be realised it is important that supply chain bottlenecks are reduced. It is debatable as to whether e-way bill is required at all or transport documents including copy of the invoice should suffice.Pratik Jain, Partner and Leader Indirect Tax, PwC
Message To India Inc.
The GST Council also discussed the anti-profiteering provision. Jaitley said council members expressed that many business were not passing on the benefit of the input credit system to consumers via price cuts.
Many business are not passing on the benefit of the input credit to consumers. We appeal to them via media.Arun Jaitley, Union Finance Minister
GST Rate Cut
Jaitley said the council decided to cut the GST rate on job work across the textile chain to 5 percent, government contracts to 12 percent and parts used exclusively for tractors to 18 percent.
The GST Council also decided to cut rates for 19 items, the full list of which is yet to be released.
The decision to reduce the tax on job work in the textile sector to a uniform level of 5 percent would benefit the textile sector as there are multiple levels of job work and multiple processes that are necessary in this sector and having a uniform rate would make it simple for the sector to comply and also avoid inverted duty structures in some cases.MS Mani, Senior Director, Deloitte Haskins & Sells
The next meeting of the GST Council will be held on September 9 in Hyderabad. PwC’s Jain said in email comments that the next meeting will be important as “reduction in rate of tax on several other items recommended by the fitment committee would be discussed and decided”.
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