3 per cent was agreed upon along with a view to consider raising the rate to 5 per cent in the coming years, they said. The Council recently revised GST rates on job work of textile yarn and fabric manufacturing from 18 to 5 per cent.
With just a few days left for the rollout of GST, the Centre is in favour of postponing by a few months the implementation of the e-way bill, which requires movement of goods above '50,000 to be to pre-registered online. The micro dot coating that is done only sustains about 1.3 to 1.4 per cent of input credit. Jaitley's remark came after West Bengal Finance Minister Amit Mitra had raised serious doubts over the possibility of GST roll out from July one saying that the Goods and Services Tax Network (GSTN) was not ready to handle the large volumes of forms that would be received.
The GST is going to increase the operational cost and it is likely the airlines will increase the fares.
He added, "We have provided micro and macro scenario to textile secretary during our representation on June 9, 2017 of 12 per cent rate on MMF where revenue collection of government is also not affected as well as industry would also be able to bear the cost".
The telecom industry has demanded a lower rate, arguing that an 18 percent GST rate, higher than the current 15 percent service tax for sector, will adversely affect the industry.
California plots to fight 'AWOL' Trump on climate
Ambassador to the United Nations Nikki Haley speaks to the staff at the USA embassy in Ankara on May 23, 2017. However, experts say it is unclear whether they actually can fill the gap left by the Trump administration.
Meanwhile, the GST Council last week lowered tax rates for 66 items, placing products such as cutlery, pickles, ketchup, mustard sauce and toppings at a lower tax slab of 12 per cent compared with 18 per cent earlier.
Bad loans and GST preparedness of banks was discussed among other issues here at the day-long review meeting of public sector banks with Finance Minister Arun Jaitley and other ministry officials.
He explained that this would now help SMEs of powerloom, knitting and processing sectors not to face much financial burden.
Chairman M Senthilkumar has said reduction would benefit MSME segment and ensure a level playing field with the vertically integrated manufacturing units.