The GST Council may reduce tax rates on job work to those who are making fabric to the garment and put it under 5 percent slab rate structure in the GST framework. The meeting will be conducted tomorrow and may be the industry have to register online for goods worth above Rs 50,000 before getting transported.
The GST Council chaired by Union Finance Minister Arun Jaitley will also evaluate the progress report in the meeting after the implementation of Goods and Services Tax (GST). To operate anti- profiteering provision in the new regime Jaitley will also announce mechanism in its tomorrow meeting.
Vanaja Sarna, Central Board of Excise and Customs (CBEC) Chairperson said that 25 states out of 29 have removed checkpoint entry taxes on the movement of goods in between the states for a smoother process. Goods above Rs 50,000 will be requiring e- way bill before the goods can be transported and the industries have to be pre- registered online in this case. Sarna said, “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.”
She has denied commenting on whether the threshold limit of e- way bill Rs 50,000 will remain same or change. Officials said that E- way bills in the new indirect regime will be announced tomorrow. Under GST Provision, Goods above RS 50,000 will be required pre- registration before they can be transported or moved.
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According to the GST draft provision, GSTN generated E- way bills would be acceptable “it totally depends on how much distance to be covered- for 100 km is 1 day, In between 100 – 300 km is 3 days, In between 300 – 500 Km is 5 days and 500 – 1000 Km is 15 days”.
It is compulsory for manufacturers to pass out reduced tax benefits to consumers in the new indirect tax regime -, announced by Finance Minister Arun Jaitley in the previous week.
Jaitley said in a Parliament “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 finalize the entire mechanism as far as anti-profiteering is concerned.”
