New Delhi: The GST rates on textile job works like stitching and embroidery, and tractor parts were Saturday cut while e-way bill provisions relating to online pre-registration of goods before transportation were relaxed.
The all-powerful GST Council, headed by Finance Minister Arun Jaitley and comprising representatives of all states, decided to tax all job works in the textile sector, from embroidery to weaving, at 5 per cent instead of previously decided 18 per cent. This 5 per cent rate will be applicable for job works in apparel, shawls and carpets.
To make farm equipment cheaper, tractor parts would attract the Goods and Services Tax (GST) rate of 18 per cent instead of 28 per cent previously.
Government work contracts would attract 12 per cent GST with input tax credit, Jaitley said.
The Council also gave in-principle approval to anti-profiteering measures and setting up of a Screening Committee in 15 days to see if tax reductions after implementation of GST have been passed on to consumers.
Briefing reporters after the 20th meeting of the Council, Jaitley said all goods worth over `50,000 will have to be pre-registered
online before they are moved for sale beyond 10-km. GST-exempted goods have been kept out of the purview of e-way bill — a minor relaxation from draft rules which required for all goods to be pre-registered under the e-way bill provision.
The e-way bill mechanism is likely to come into force by October 1. The permits thus issued would be valid for one day for movement of goods for 100-km and in same proportion for following days.
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).
He said more than 71 lakh central and state taxpayers have migrated to the GST system and have completed registration. Another 15.67 lakh new applications for registration have been received.
He appealed to businesses to pass on the benefit of the reduced tax under the GST to consumers, failing which the anti-profiteering mechanism will be triggered.
The Council will meet next September 9 in Hyderabad during which it will take up the issue of many rice millers deregistering their brands to escape taxation under the GST.
Press Trust of India
