Mandatory e-way bills for gold set to be on GST council table

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Mandatory e-way bills for gold set to be on GST council table

(GST) regime, the GST Council will discuss a proposal to implement a mandatory e-way bill system for intra-state movement of such high-value items with a minimum threshold of Rs 2 lakh.

Expected proposals

  • A ministerial panel, headed by Kerala's Finance Minister KL Balagopal, has made the recommendation and also suggested mandatory e-invoicing for B2B transactions by all taxpayers supplying gold/precious stones and having annual aggregate turnover above Rs 20 crore.
  • The GOM has suggested that states should be allowed to decide the modalities about the imposition of the e-way bill for intra-state movement of gold and precious stones within their states.
  • It has also suggested that the GST Network, in consultation with NIC, will work out the modalities and timelines for implementation of e-invoicing for gold/precious stones.
  • This recommendation by the ministerial panel is expected to be taken up for discussion in the next GST Council meeting to be held on June 28-29.
  • Additionally, the Council will also discuss rate hike suggestions from fitment committee for items ranging from cut and polished diamonds (1.5 percent from 0.25 per cent), tetra packs (18 per cent from 12 percent) and rate cut for ostomy appliances including waterproof pouch for collecting waste from the body (nil from 12 per cent).
  • Rate rationalisation measures under GST are being considered as the compensation regime - under which states were offered compensation for revenue loss below the guaranteed compounded 14 per cent rate - comes to an end in June after five years of the rollout of the indirect tax regime.
  • As per data on revenue growth collated for the Council meeting, only five out of 31 states/UTs - Arunachal Pradesh, Manipur, Mizoram, Nagaland, Sikkim-registered a revenue growth higher than the protected revenue rate for states under GST in financial year 2021-22.
  • Puducherry, Punjab, Uttarakhand and Himachal Pradesh have recorded the highest revenue gap between the protected revenue and post-settlement gross state GST revenue in 2021-22.

Prelims Takeaway

  • GST Council
  • GST Network
  • E- way bills
  • E-invoicing