New Delhi: The GST Council will meet tomorrow to review the tax concerns expressed by different sectors and finalise a mechanism to operationalise the anti-profiteering clause that seeks to protect consumers' interest.
Several trade organisations and industry representatives have pointed out the anomalies in the rates and asked the government to review them. This will be the first full-fledged meeting of the GST Council, chaired by finance minister Arun Jaitley and comprising his state counterparts, after the rollout of the indirect tax reform on July 1.
The demands
The auto sector has demanded that the 43 per cent GST on hybrid cars - 15 per cent cess over the 28 per cent GST rate - is contradictory to the government's aim to promote eco-friendly products and should be reviewed.
The textile sector has sought a lower tax rate of 5 per cent for job works for making garments against 18 per cent at present. At present, job works in textile yarns (other than man-made fibre/filament) and textile fabrics attract a 5 per cent GST. Other job works in garments attract an 18 per cent levy.
The hotel and restaurant sector wants the government to review the service tax rates. Before the GST, the service tax was 5 per cent, which has been increased to 12 per cent for non-AC restaurants and 18 per cent for AC restaurants.
The sector wants a uniform 12 per cent rate for restaurants as the new tax rate has resulted in lower footfalls.
Anti-profiteering norms
The council, Jaitley said, will finalise a mechanism to operationalise the anti-profiteering clause to protect consumers' interest.
The anti-profiteering law simply states that businesses have to pass on the benefits arising out of lower taxes to the consumer.
According to Clause 171 of GST Act, it is mandatory to pass on the benefits of lower tax rates from input tax credit to the consumers by reducing the prices.<>
Meanwhile, Vanaja Sarna, chairperson of the Central Board of Excise and Customs, said the movement of goods between states had smoothened with 25 of the 29 states abolishing checkposts.
While silk and jute fibre have been exempted, a 5 per cent GST is levied on cotton and natural fibre and all kinds of yarns will be levied . Man-made fibre and yarn will, however, attract a 18 per cent tax rate.
All categories of fabric attract a 5 per cent rate. Man-made apparel up to Rs 1,000 will attract a 5 per cent tax and those costing above Rs 1,000, will attract 12 per cent. The sector is keen on rationalisation of tax structure.
"About 25 states have removed those checkposts. So far, it has been going all right," she said.
This would further smoothen after e-way bill in GST that requires any goods more than Rs 50,000 in value to be pre- registered online before it can be moved is implemented.
"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," Sarna said.
She, however, declined to comment on whether the threshold in e-way bill will be retained at Rs 50,000 amid demands from various quarters to raise it.
Officials said rules for the e-way bill will be decided tomorrow. This GST provision requires any goods more than Rs 50,000 in value to be pre-registered online before it can be moved.
According to the draft provision, GSTN would generate e-way bills that will be valid for 1-20 days, depending on the 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).
The information technology platform for the e-way bill system is being developed by the National Informatics Centre.
0 comments:
Post a Comment