Skip to main content

GST Council may finalise e-way rules today

GST Council may finalise e-way rules today
GST provision requires goods more than Rs 50,000 to be pre-registered online before it can be moved
 
The Goods and Services Tax (GST) Council is likely to lower tax rate on Saturday 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. The Council, headed by Finance Minister Arun Jaitley, will also review at its meeting the implementation of the 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 the movement of goods between states has smoothened with 25 out of 29 states abolishing check posts.
 
"About 25 states have removed those check posts. So far, it has been going all right," she told PTI.
 
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 the e-way bill process for the whole of India gets panned out, we should be able to do something which will be better," Sarna said.
 
She, however, declined to comment on whether the threshold in the e-way bill will be retained at Rs 50,000 amid demands from various quarters to raise it.
 
Officials said rules for the e-way bill will be decided tomorrow. This GST provision requires any goods more than Rs 50,000 in value to be pre-registered online before it can be moved.
 
As per the draft provision, GST Network (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.
 
"What if input tax benefit is not transferred to consumers? ...We are meeting a few days from now... In a short while, we are going to finalise the entire mechanism as far as anti-profiteering is concerned," he had said in Parliament.
 
The Council is also likely to tomorrow consider lowering of tax rates for job works for making garments to 5 per cent from 18 per cent, an official said.
 
Currently, services by way of job work in relation to textile yarns — other than man-made fibre/filament — and textile fabrics attract 5 per cent GST. Other job works in relation to garments attract an 18 per cent levy.
 
The official said the Council may look at streamlining it and bring all job works, including for making garments from fabric, under the 5 per cent slab.
 
Apart from reviewing the rollout of the GST regime, the 19th meeting of the Council may on Saturday take a look at streamlining the anomalies raised by the industry over the past one month, said an official, who did not want to be named.
 
It will be the first full-fledged meeting of the GST Council, also comprising representatives of all the 29 states, after the rollout of the new indirect tax reform on July 1.
 
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 a 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.
 
According to 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.
 
Business Standard, New Delhi, 05 August 2017

Comments

Popular posts from this blog

RBI minutes show MPC members flagged upside risks to inflation

RBI minutes show MPC members flagged upside risks to inflation Concerns about economic growth and easing inflation prompted five of the six monetary policy committee (MPC) members to call for a cut in the repo rate, but most warned that prices could start accelerating, show the minutes of the panel’s last meeting, released on Wednesday. The comments reflected a tone of caution and flagged upside risks to inflation from farm loan waivers, rise in food prices, especially vegetables, price revisions withheld ahead of the goods and services tax, implementation of house rent allowance under the 7th pay commission and fading of favourable base effect, among others. On 2 August, the panel chose to cut the repurchase rate—the rate at which the central bank infuses liquidity in the banking system—by 25 basis points to 6%. One basis point is one-hundredth of a percentage point. Pami Dua, professor at the Delhi School of Economics, wrote that her analysis showed “a fading economic growth outlook, as …

Shrinking footprints of foreign banks in India

Shrinking footprints of foreign banks in India Foreign banks are increasingly shrinking their presence in India and are also becoming more conservative than private and public sector counterparts. While many of them have sold some of their businesses in India as part of their global strategy, some are trying to keep their core expertise intact. Others are branching out to newer areas to continue business momentum.For example, HSBC and Barclays Bank in India have got out of the retail business, whereas corporate-focused Standard Chartered Bank is now trying to increase its focus on retail “Building a retail franchise is a huge exercise and takes a long time. You cannot afford to lose it,” said Shashank Joshi, Bank of Tokyo-Mitsubishi UFJ’s India head.According to the Reserve Bank of India (RBI) data, foreign banks’ combined loan book shrunk nearly 10 per cent from Rs 3.78 trillion in fiscal 2015-16 to Rs 3.42 trillion last financial year. The banking industry, which includes foreign banks…

Differential Tax Levy under GST: Food Firms May De-Register Trademarks

Differential Tax Levy under GST:Food Firms May De-Register Trademarks The government’s decision to charge an enhanced tax rate on trademark food brands is leading several rice, wheat and cereal manufacturers to consider de-registering their product trademarks. Irked by the June 28 central government notification fixing a 5 per cent goods and services tax (GST) rate on food items packaged in unit containers and bearing registered brand names, the industry has made several representations to the government to reconsider the differential tax levy, which these players say is creating an unlevel playing field within these highly-competitive and low-margin industries. Sources say that the move has affected the packaged rice industry the hardest and allowed the un-registered market leaders, India Gate and Daawat, to gain advantage as compared to other registered brands such as Kohinoor and Lal Qilla. Smaller players are even more worried with this enhanced rate of tax (against the otherwise …