The Goods and Services Tax (GST) Council will hold its 20th meeting on Saturday to discuss rationalisation of rates on textiles job work, some agricultural equipment, along with norms for e-way bill. The Council, headed by finance minister Arun Jaitley, will also review the implementation of the GST regime since July 1 and may finalise a mechanism to operationalise anti-profiteering provision to protect consumers.
It is likely to lower tax rate on all job works related to textiles sector to five per cent, an official said. Currently, the GST for job works related to textile yarns, other than man-made fibres and textile fabrics is 5 per cent, while for manmade fibres, it is 18 per cent, the official said.
The roll-out of GST from July 1 has met with several protests from the textiles sector that has been demanding a cut in the tax rate on fabrics, which were brought in the tax net for the first time at the rate of 5 per cent. Jaitley had earlier this month said in Rajya Sabha that the GST rate on fabrics cannot be lowered, as it will break the chain of input tax credit.
As per the rates decided by the Council, in the textiles category, silk and jute fibre have been exempted, while cotton and natural fibre and all kinds of yarns will be levied a 5 per cent GST. Manmade fibre and yarn will, however, attract an 18 per cent tax rate. All categories of fabric attract a 5 per cent rate. Manmade apparel up to Rs 1,000 will attract a 5 per cent tax and those above Rs 1,000 will attract 12 per cent.
The Council is also likely to discuss the anomalies raised by the industry over the past one month, officials said. Officials said rules for the e-way bill are also likely to be finalised on Saturday. As per the e-way bill mechanism, inter-state and intra-state movement of goods and consignments valued at more than Rs 50,000 will be tracked under the indirect tax regime.
As per the draft provision, GSTN would generate e-way bills that will be valid for 1-20 days, depending on 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. The Council is also likely to consider representations from the agriculture sector regarding GST rate on some pesticides and agricultural equipments.