20th GST Council Meeting : 5 Key Decisions

In its 20th meeting on 5th August, the GST Council decided to implement the e-way bill system, discussed the anti-profiteering provision and cuts rates for 19 items.

Here are the 5 key decisions

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.

• 1 day for 100 km
• 3 days (100 to less than 300 km)
• 5 days (300-less than 500 km)
• 10 days (500-less than 1,000 km) and
• 20 days (more than 1,000 km)

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.