Under GST rules, ferrying goods worth more than Rs 50,000 within or outside a state will require securing an e-way bill by prior online registration of the consignment.
The GST Council on Saturday rationalised rates of 19 services including textile jobs and government work contracts, cut taxes on certain tractor parts to 18 percent from 28 percent, and approved e-way bill rules that will remove checkposts at state borders.
Under GST rules, ferrying goods worth more than Rs 50,000 within or outside a state will require securing an e-way bill by prior online registration of the consignment. To generate an e-way bill, the supplier and transporter will have to upload details on the GSTN portal, after which a unique e-way bill number (EBN) will be made available to the supplier, the recipient and the transporter on the common portal.
“The E-way bills rules have been approved in-principle. There will be no check-posts. It will be technology driven,” Union Finance Minister Arun Jaitley said after the Council’s meeting on Saturday.
“The e-way bill rules will become applicable on a date as notified that will happen quite soon,” Jaitley said. The GST Council’s next meeting will take place in Hyderabad on September 9.
Sources in the GST Council told Moneycontrol that the e-way bill rules will likely become effective from October 1. Depending on the distance covered or needed to transport the goods, the EBN will remain valid for one to 15 days — one day for distances up to 100-km and 15days for distances of more than 1,000 km.
The Council also fixed GST rate for textile job works at 5 percent, and cut the rate for government works contract to 12 percent with benefits of input tax credit. The tax rate of job work for printing books and newspapers will be 12 percent if the service is supplied by someone else, while the GST rate will remain 5 percent if it is printed by the same organisation.
For agriculture services, tax rate of post-harvest and storage has been brought down to 12 percent from 18 percent. Similarly, tax rate for entry into planetariums has been reduced to 18 percent from 28 percent. In case of "rent a cab service", GST rate will be 12 percent if the service provider does not wish to claim input tax credit (ITC), while it will be 5 percent if ITC is taken, Revenue Secretary Hasmukh Adhia said.
In case of housekeeping services such as plumbers, it is the liability of the aggregator to pay GST.
Goods and services used specifically for the purposes FIFA Youth World Cup later this year in India has been exempted from GST.
The Council also discussed the rules related to anti-profiteering. An "anti-profiteering" clause has been provided in the Centre GST (CGST) and State GST (SGST) laws, to ensure that business pass on the benefit of reduced tax incidence on goods or services to the consumers.
States will likely set up the screening committees for anti-profiteering within the next 15 days. Such a framework will ensure that companies don't arbitrarily raise prices of goods just before or after the implementation of GST from July 1. Under the rules, a National Anti-profiteering Authority can be set up that will be empowered to probe cases suspected to have not cut prices despite lower taxes.
“The benefit of input tax credit (ITC) should go to customers. Hope we don’t get to a situation where we have to immediately approve the authority,” Jaitley said.
Input credit means at the time of paying tax on output, a producer, trader or service provider can reduce the tax already paid on inputs.Jaitley also said that so far 86 lakh assessees have migrated to GST registration.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.