New Delhi, August 5, 2017
In a slew of decisions, the Goods and Services Tax Council approved implementation the electronic way bill system across the country, created necessary structural framework for anti-profiteering mechanism and provided relief to the agitating textiles sector by slashing rate of job work to 5% from a high of 18%.
"The Council decided to implement E-way bill across country......There will be no check posts and process will be technology driven," union finance minister Arun Jaitley told reporters after the council meeting on Saturday.
The finance minister appealed to the industry to pass on the benefit of the input tax credit to consumers saying that this mechanism is there as a detterant.
"There was a long discussion on anti profiteering.....Some industries not giving benefit of input tax credit. We want market mechanism to compel them to pass on the benefit," he said.
He said states and Centre screening committee that are being created should be used minimal. "But, it should be there as deterrent," he said.
He said a number of items dealing with rate correction on some goods following industry representations could be taken up due to paucity of time
The Council also cut tax rate on some tractor parts from 28% to 18% as also lowered rate for rent a cab service.
The E-way bill would be rolled out from October 1, said an official. The minister said E-way bill will not be required to transfer exempted goods.
Work contracts under GST will be taxed at 12% with input tax credit.
He said more than 71 lakh central and state taxpayers have migrated to the Goods and Services Tax (GST) system and 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 GST to consumers, failing which the anti-profiteering mechanism will be triggered. The Council will meet next on September 9 in Hyderabad, Jaitley added.
[The Economic Times]