1.GST rate on all textile jobworks reduced to 5% from 18%
5% rate will be applicable to all job works related to the textile and apparel sector. Earlier 5% rate was applicable only to certain yarn and textile works while garmenting industry had to pay 18%
2. GST on works contract reduced to 12% from 18%
The GST rate for government work contracts, for both central and state governments, was also cut to 12 %with input tax credit from the earlier decided rate of 18 per cent
3. E-waybill rules finalised. Likely to come into force by October 1.
Under the proposed e-way bill rules, pre-registration required of all goods worth over Rs 50,000 before they are moved for sale beyond 10 km. Exempted goods under GST will be kept outside its purview. The permits thus issued would be valid for one day for movement of goods for 100 km and in same proportion for following days.
4. Council gave in-principle approval to anti-profiteering measures.
Proposal to set up a Screening Committee in 15 days to see if tax reductions after implementation of GST have been passed on to consumers.
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. All you need is to make a few examples and then everybody will fall in line. If there is benefit of the input credit then cost correspondingly must decline.
– Arun Jaitley, Hon. Finance Minister