Page 46 - Banking Finance October 017

FEATURES

RATE ON TEXTILE JOB

WORKS, TRACTOR

PARTS LOWERED

T he Goods and Services Tax (GST) Council in its cent, Jaitley said. Under the proposed e-way bill rules, the

20th meeting on Saturday decided to cut the tax
exempted goods under GST will be kept outside its purview.
The permits thus issued would be valid for one day for
rate for job work for the entire value chain of
textiles sector to 5 per cent along with reduction
following days. As per the draft provision, GSTN would
in rate for tractor parts to 18 per cent from 28 per cent. movement of goods for 100 km and in same proportion for
Also, the Council gave in-principle approval to the e-way bill generate e-way bills that will be valid for 1-20 days,
rules, which envisage a technology driven tracking of depending on distance to be travelled — one day for 100
movement of goods worth more than Rs 50,000 and for sale km, 3 days (100 to less than 300 km), 5 days (300-less than
beyond 10 km in distance. The e-way bill rules are likely to 500 km), 10 days (500-less than 1,000 km) and 20 days (more
come into force from October 1. than 1,000 km). “E-way bill system will be implemented
across the country. There will be no checkposts. The process
“Ek bada vishaye tha job works ka textiles pe. Consensus ye will be technology driven and human intervention would be
bana ki throughout the textile chain jisme keval textile hi minimised. It will be reviewed going forward,” Jaitley said.
nai, apparels, shawls, carpet jitne bhi textile related items
hai unn sabb pe job work ka rate 5 per cent hi rahega (One Opposing the Council’s decision, Delhi’s finance minister
big issue was tax rate for job work in textiles sector. A Manish Sisodia said that the issue was against the
consensus was evolved that the GST rate for job work “fundamental concept” of GST. On Twitter, he wrote, “Have
throughout the textile chain and even for textile related opposed idea of e-way bill in GST meeting today. It’s against
items such as apparels, shawls, carpets will be 5 per cent),” the fundamental concept of GST.” In another tweet, he
finance minister Arun Jaitley told reporters after the added, “Why we need e-way bill? GST was brought on ‘One
meeting. Nation – One Tax – One Market’? We have to come out of
‘Inspector Raj’ mindset.”
Earlier, the GST for job works related to textile yarns, other
than man-made fibres and textile fabrics, was 5 per cent, The Council also gave in-principle approval to anti-
while for man-made fibres, it was 18 per cent. The move profiteering measures and proposal to set up a Screening
assumes significance as the rollout of GST from July 1 had Committee in 15 days to see if tax reductions after
met with several protests from the textiles sector that had implementation of GST have been passed on to consumers.
demanded a cut in the tax rate on fabrics, which were Jaitley appealed to businesses to pass on the benefit of the
brought in the tax net for the first time at the rate of 5 per reduced tax under the GST to consumers, failing which the
cent. anti-profiteering mechanism will be triggered.

The GST rate for government work contracts, for both “The market mechanism should compel that they give
central and state governments, was also cut to 12 per cent benefit of input credit,” Jaitley said, hoping that there would
with input tax credit from the earlier decided rate of 18 per be “minimal” use of anti profiteering provision and the

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