E-way rules may be finalized tomorrow by the GST Council

The GST Council is likely to lower tax rate tomorrow on job works making fabric to garments to 5 per cent and put in place a mechanism for online registration of goods above a certain value before they can be transported. 

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The Council, headed by Finance Minister Arun Jaitley, will also review at its meeting the implementation of the new Goods and Services Tax (GST) regime since July 1 and may finalise a mechanism to operationalise anti-profiteering provision to protect consumer interest. 

Central Board of Excise and Customs (CBEC) Chairperson Vanaja Sarna said movement of goods between states has smoothened with 25 out of 29 states abolishing checkposts.  “About 25 states have removed those checkposts. So far, it has been going all right,” she told PTI as per Economic Times. 

This would further smoothen after e-way bill in GST that requires any goods more than Rs 50,000 in value to be pre- registered online before it can be moved is implemented. 

As per the draft provision, GSTN would generate e-way bills that will be valid for 1-20 days, depending on distance to be travelled — one day for 100 km, 3 days (100 to less than 300 km), 5 days (300-less than 500 km) and 10 days (500- less than 1,000 km). 

The information technology platform for the e-way bill system is being developed by the National Informatics Centre. 

Earlier this week, Finance Minister Arun Jaitley had said it would be mandatory for manufacturers to pass on benefits of reduction in taxes post GST to consumers. 

The Council had on July 17 discussed, via video conferencing, hiking cess on cigarettes as there was some anomaly in the rate fixed earlier. 

After the July 1 rollout, the textile sector had protested, demanding rollback of 5 per cent GST on fabrics. 

Jaitley, however, had ruled out cutting tax rates for the textiles sector, saying a zero per cent GST on fabrics will break the input tax credit chain for the domestic industry and make imported items cheaper. 

As per the rates decided by the Council, in the textiles category, silk and jute fibre have been exempted, while cotton and natural fibre and all kinds of yarns will be levied a 5 per cent GST. Man-made fibre and yarn will, however, attract an 18 per cent tax rate. 

All categories of fabric attract a 5 per cent rate. Man- made apparel up to Rs 1,000 will attract a 5 per cent tax and those above Rs 1,000 will attract 12 per cent. 
 
Source: Economic Times

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