Goods and Service Tax

[Ganeshan Kalyani]

Amid pressure from some states, the GST Council will soon start publishing rates of various products to prod companies to pass on gains, including those from input tax credit.

“To begin with, 150 items will be taken up. It will have a detailed explanation of previous taxes and prices as well as new prices after GST. It will also explain the price differential between the two tax regimes,” said an official who did not wish to be identified.

[Ganeshan Kalyani]

More items would be added once the campaign with 150 products takes off.

Another officer said, “This will only be illustrative.”

While the government had discussed a plan for a detailed price list incorporating the impact of GST, it has released a mobile app listing the tax rates.

[Ganeshan Kalyani]

Sources said states such as Kerala, West Bengal and Bihar led the charge at Saturday’s meeting to lay down the process and pressurise companies to reduce prices as several ministers argued that prices have not come down after GST.

“There is a need to end this perception to ensure acceptance of GST among consumers,” said one of the officials cited earlier.
 

[Ganeshan Kalyani]

Keeping prices under check after the rollout of GST is a key priority for the government and the states’ demand for product-specific explanation of differences in prices found favour with the Centre.

There were some ministers who wanted to let companies decide on pricing, at least in the short term, arguing that it will be against the spirit of empowering businesses and making life simpler. “What they want is price control, which will result in inspector raj,” said a source.

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[Ganeshan Kalyani]

Already, officers in states such as Maharashtra and Tamil Nadu seem to have jumped the gun and shot off letters seeking details of price changes, while others such as Andhra Pradesh and Puducherry have limited themselves to phone calls. Durables and FMCG players as well as fast food chains have received enquiries regarding prices, which are not permitted

[Ganeshan Kalyani]

GST Council finalised the e-way bill that mandates pre-registration of all goods worth over ₹ 50,000 before they are moved for sale beyond 10 km.

[Ganeshan Kalyani]

Exempted goods have been kept out of the purview of e-way bill – a minor relaxation from draft rules which required for all goods to be pre-registered under the e-way bill provision.

[Guest]

Dear GST expert

As per Explanation provided at end of sec 17 of CGST act, Plant and machinery excludes “Pipeline laid outside the factory premises” In this case, credit on pipeline laid outside factory/materials used in maintenance work of pipeline laid outside factory premises(purpose of pipeline is to connect external water source with factory premises) will not be available. Isn’t sir?

[Guest]

As per erstwhile law, credit on material(Ms channels, Ms beams and angles) used for making structural support(fixed with earth) to machinery/equipment was not available. But as per sec 17(d) of CGST act and explanation provided at end of sec 17, ITC is available on materials (Ms channels, Ms beams and angles) used for such structural support. Is this correct sir?

[Guest]

What is Tax treatment/procedure for Removal of used goods purchased prior to GST?

[Guest]

Sir, What is procedure under GST law for sending Machinery/equipment outside the factory for any work(repair, rewinding etc)?. As per erstwhile law, challan issued under rule 4(5a) of CCR 2004.

[Guest]

Procedure for cancelling invoice of goods not removed from factory?

AI Summary

Price transparency under GST to encourage passing on input tax credit benefits, alongside e-way bill and ITC clarifications. The GST Council will publish illustrative product rates and price comparisons to push businesses to pass on input tax credit benefits; a mobile app lists tax rates. The Council finalised an e-way bill requirement for pre-registration of movement of goods beyond a monetary/distance threshold, excluding exempted goods. Clarifications note that pipelines laid outside factory premises are excluded from plant and machinery for ITC, while materials forming fixed structural supports for machinery are eligible for ITC under section 17(d). Practical procedural queries on removal of pre-GST used goods, sending machinery out for repair, and invoice cancellation are recorded.