Calls for rate reviews for 150 items with GST Council

Nearly 150 proposals for reduction of tax rates on items ranging from clay idols and dhoop battis, dosa and idli batters, macaroni pasta to granite raw blocks and scientific instruments have been examined by the Fitment Committee of officials under the Goods and Services Tax Council since the first month of the roll out of the levy.

Significantly, it is understood to have ruled out any reduction in the rate on hybrid cars where the industry had wanted the compensation to be lowered by three per cent.

For many food items, such as sharbats with synthetic flavouring, treatment of dried methi patta as spices or dried vegetables, sweets and milk products served in restaurants and considering chikki and kheer as sweets for a lower tax rate, the Committee has suggested clarifications to remove any doubts.

The GST Council in its meeting on Saturday revised the rates of items such as job works in textiles to five per cent, some tractor parts to 18 per cent and rent-a-cab service and goods transport agency services to 12 per cent with full input tax credit. (See chart)

Many of the remaining proposals will be taken up by the Council in its next meeting on September 9 in Hyderabad, Finance Minister Arun Jaitley has said.

National Informatics Centre has been asked to develop the E-Way Bill software. Though some States like Delhi have protested, the GST Council has decided to notify the E-Way Bill at the earliest.

While the government hopes the new E-Way Bill will remove checkposts and ensure smooth movement of goods, Delhi Deputy Chief Minister Manish Sisodia said that he had opposed the plan as it goes against the “fundamental concept of GST”.

“Why we need E-Way Bill? GST was brought on ‘One Nation - One Tax - One Market’? We have to come out of ‘Inspector Raj’ mindset,” he said.

A committee of officials from the Central Board of Excise and Customs, Ministry of Road Transport and Highways, GST Network and State tax officials will work with NIC to monitor the development of the software.

The E-Way Bill, which mandates pre-registration of goods costing over ₹50,000, is expected to be implemented by October 1. E-Way Bills would be valid for a period between one day and 20 days depending on the distance to be travelled. The Council has decided that items exempt from GST would not require an E-Way Bill. Similarly, for inter-city movement of goods up to a distance of 10 kilometres, no such document would be needed.

Goods being transported from a non-motorised vehicles like carts and rickshaws or being transported from a port, airport, air cargo and land customs complex to an inland container depot or freight stations will also be exempt. The GST Council also appealed to industry to pass on price benefits of the new levy to consumers.

But, States and the Centre will set up over the next 15 days their respective Screening Committees to monitor complaints on price hike.

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