GST council reduces tax on textile work contracts

New Delhi Aug 6: The GST Council had held the 20th meeting yesterday in New Delhi. Speaking to media after the meeting Finance Minister Arun Jaitley on Saturday has requested all the businesses to pass on the benefits of the goods and services tax (GST) to consumers so that Anti profiteering clause will not be invoked.

Minister said that currently, many businesses have not been passing on the input credit benefit to the consumers. He also said that states and center would set up screening committees to monitor the situation and act as deterrents.



FM has also said that Council has approved the e -way bills and would be implemented from notified and this system is a technology based so states have decided to abolish check posts. He has also said that E -way bills are required for goods whose value is more than RS 50,000 and exempt goods and vehicles traveling 10 km within the city limit don't require such electronic bills.

Some of the tax rates on goods and services have been reduced.Some tractor parts tax rates have been reduced to 18 % from 28 %.The rate on Job works throughout the textile chain has been reduced to 5 % from 18 %. These also include carpets and shawls. The tax rate on work Contracts undertaken by the state governments has been reduced to 12 % from 18 %.

Jaitley has said that the next GST Council meeting will be held in Hyderabad on September 9.