The Goods and Services Tax Council on Saturday decided to cut the GST rate on jobworks across the textile sector to 5%, government contracts to 12% and parts used exclusively for tractors to 18%, The Indian Express reported.
“One big issue was tax rate for jobworks in the textiles sector,” said Finance Minister Arun Jaitley. “A consensus was evolved that the GST rate for jobworks throughout the textile chain, and even for textile-related items such as apparels and shawls, carpets will be 5%.”
At its 20th meeting in Delhi, the council also gave in-principle approval to the E-way Bill to ensure seamless movement of goods. These rules – likely to come into effect from October 1 – mandate the registration of all goods worth more than Rs 50,000 before they are transported for sale.
“The council decided to implement the E-way Bill across the country,” Jaitley said, according to The Times of India. “There will be no check posts, and the entire process will be technology-driven.”