Transporting goods across states is set to become easier with the GST Council approving on Saturday all-India mandatory compliance of electronic-way (e-way) bill.
Compliance of e-way bill for intra-state movement of goods would start from 1 June 2018, according to a media report. The Council fixed 1 February as the compliance date for inter-state movement of goods, said the report citing sources in the panel.
This followed the Union Cabinet decision on Friday to bring in a Bill to replace the Goods and Service Tax (Compensation to States) Ordinance, aiming to compensate states for the loss of revenue due to implementation of GST. For this, it provides for imposition of compensation cess on supplies of goods and services within as well as between states, said media reports.
The Ordinance was promulgated on September 2 to put into effect recommendation of the GST Council, at its 20th meeting held in August, for an increase of 10 per cent to 25 per cent in the maximum rate on certain type of motor vehicles.
As per the Constitution, the Parliament has to approve an Ordinance in its first session held after the promulgation. The government has listed the Bill for introduction in its Parliament business agenda for the next week.
Meanwhile, the GST Council decided to advance compliance with the e-way bill from April 1 to February 1 and trials will begin from January 15, said media reports.
Under the e-way mechanism, all goods worth over Rs 50,000 will have to be pre-registered online before they are moved for sale beyond 10 km.
In an earlier meeting, the Council had decided that e-way bill – an electronic document generated on the GST Network portal – would be introduced in a staggered manner from January 1 and subsequently nation-wide from April 1.
The need to review the rollout timeline stems from revenue shortfall registered last month, said news reports. The GST revenue for October stood at Rs 83,346 crore, the lowest compared to the first three months since the implementation of GST from July 1. It was significantly down from the September figure of Rs 95,131 crore.
Last month, tax rates on several items, ranging from chewing gum to chocolates, to beauty products, wigs, and wristwatches, were cut to provide relief to consumers and businesses. As many as 178 items of daily use were shifted from the top tax bracket of 28% to 18%, while a uniform 5% tax was prescribed for all restaurants, both air-conditioned and non-AC.