Garments sector demands 5% uniform GST for the sector

The proposal to fix a uniform GST slab of 12% for the garments sector, if it goes through, will hit the ‘already battered’ industry and may lead to job losses, industry insiders fear. Currently there are two tax slabs – 5% for bills below ₹999 and 12% for bills above that. Calls for a uniform tax slab prompted a proposal to fix it at 12% for both slabs. However, representatives of the garment sector are demanding that it should be 5%.

“The industry, one of the largest employers, is one of the worst-hit by the pandemic. With no social gatherings and people working from home, sales have dropped by over 50%. People also do not have spending capacity. Meanwhile, the prices of raw materials have shot up significantly. In such a situation, hiking tax to 12% will further hit the industry,” said Sajjan Raj Mehta, of Karnataka Hosiery and Garments’ Association.

In a letter to Chief Minister Basavaraj Bommai, who was recently appointed chairman of the Group of Ministers on GST Rate Rationalisation, Perikal M. Sundar, president of Federation of Karnataka Chamber of Commerce and Industry, (FKCCI), said, “This sector may face closure leading to unemployment and loss of revenue to the government.”

The proposal has garment workers worried too. A recent study by the Garment and Textiles Workers’ Union (GATWU) estimated that at least 60 garment factories shut down and nearly 40,000, mostly women, lost jobs, in Bengaluru alone since the pandemic.The scale of the crisis is severe across the country, said Jayaram, advisor to GATWU. Even those working have had their salaries cut and in many cases not paid for months, he added. “The demand in the domestic market has fallen steeply and it is in this sector that there has been the most closures and job losses. In such a situation, hiking GST to 12% would lead to a further fall in demand and will eventually hit us workers. It will only mean more closures, loss of jobs and salary cuts. This is the time the government must stand by the sector,” Mr. Jayaram said.Industry representatives recently met the CM and petitioned him seeking a uniform 5% GST slab for the sector. “Earlier, Mr. Bommai, acting on our petition, has written to Union Finance Minister Nirmala Sitharaman seeking a uniform slab of 5%. Now that he chairs the rate rationalisation committee himself, we hope he will honour his commitment,” said Mr. Mehta.

SOURCE:https://www.thehindu.com/news/national/karnataka/garments-sector-demands-5-uniform-gst-for-the-sector/article37014723.ece

CIRCULAR NO-164/2020/2021-GST CBIC-190354/207/2021-TO (TRU-II)-CBECClarifications regarding applicable GST rates & exemptions on certain services.

Circular No. 164 /20 /2021-GST

CBIC-190354/207/2021-TO (TRU-II)-CBEC
Government of India
Ministry of Finance
Department of Revenue
(Tax Research Unit)
*****

North Block, New Delhi,
Dated the 6 th October, 2021

To,
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All), The Principal Director Generals/ Director Generals (All)

Madam/Sir,

Sub: Clarifications regarding applicable GST rates & exemptions on certain services–reg. Representations have been received seeking clarification in respect of applicable GSTrates on the following activities:

1. Services by cloud kitchens/central kitchens,
2. Supply of ice cream by ice cream parlors,
3. Coaching services to students provided by coaching institutions and NGOs under the central sector scheme of „Scholarships for students with Disabilities”,
4. Satellite launch services provided by NSIL.
5. Overloading charges at toll plaza,
6. Renting of vehicles by State Transport Undertakings and Local Authorities,
7. Services by way of grant of mineral exploration and mining rights attracted GST,
8. Admission to amusement parks having rides etc. ,
9. Services supplied by contract manufacture to brand owners or others for manufacture of alcoholic liquor for human consumption.

2. The issues have been examined by GST Council in the 45rd meeting of the Council held on 17th September, 2021. The issue-wise clarifications are given below:

MORE:-https://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular%20No.%20164_2021_GST.pdf

CIRCULAR NO-163/19/2021-GST 190354/206/2021-TRUClarification regarding GST rates & classification (goods) based on the recommendations of the GST Council in its 45th meeting held on 17th September, 2021 at Lucknow–reg.

Circular No. 163/19/2021-GST

F. No. 190354/206/2021-TRU
Government of India
Ministry of Finance
Department of Revenue
(Tax Research Unit)
*****

North Block, New Delhi
Date: 6th October, 2021

To,
Principal Chief Commissioners/ Principal Director Generals,
Chief Commissioners/ Director Generals,
Principal Commissioners/ Commissioners of Central Excise & Central Tax(All),

Madam/ Sir,
Subject: Clarification regarding GST rates & classification (goods) based             on the recommendations of the GST Council in its 45th meeting held on               17th September, 2021 at Lucknow–reg.

Based on the recommendations of the GST Council in its 45th meeting held on 17th September, 2021, at Lucknow, clarification, with reference to GST levy, related to the following are being issued through this circular:
i. Fresh vs dried fruits and nuts;
ii. Classification and applicable GST rates on Tamarind seeds;
iii. Coconut vs Copra;
iv. Classification and applicable GST rate on Pure henna powder and leaves, having no additives;
v. Scented sweet supari and flavored and coated illaichi;
vi. Classification of Brewers’ Spent Grain (BSG), Dried Distillers’ Grains with
Soluble [DDGS] and other such residues and applicable GST rate;
vii. GST rates on goods [miscellaneous pharmaceutical products] falling under
heading 3006;

viii. Applicability of GST rate of 12% on all laboratory reagents and other goods
falling under heading 3822;

ix. Requirement of Original/ import Essentiality certificate, issued by the Directorate General of Hydrocarbons (DGH) on each inter-State stock transfer of goods imported at concessional GST rate for petroleum operations;

x. External batteries sold along with UPS Systems/ Inverter;

xi. Specified Renewable Energy Projects;

xii. Fiber Drums, whether corrugated or non-corrugated.

MORE:-https://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular%20No.%20163_18_2021_GST.pdf

NOTIFICATION NO-04/2020-Central Tax (Rate) ,dt. 30-09-2020-Extension of CGST exemption on services by way of transportation of goods by air or by sea from customs station of clearance in India to a place outside India, by one year i.e. upto 30.09.2021.

[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]

Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 04/2020 – Central Tax (Rate

DOWNLOAD
INPDF:-https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-04-centraltaxenglish2020.pdf;jsessionid=5A4ACE18F1FB3ECF435C5FB562E6CF54

 

NOTIFICATION NO-12/2021-Central Tax (Rate) ,dt. 30-09-2021 Seeks to exempt CGST on specified medicines used in COVID-19, up to 31st December, 2021

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION(i)]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 12/2021-Central Tax (Rate)

New Delhi, the 30th September, 2021

G.S.R….(E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as “the said Act”), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts the goods specified in column (3) of the Table below, falling under the tariff item, sub-heading,
heading or Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), as the case may be, as specified in the corresponding entry in column (2) of the said Table, from so much of the central tax leviable thereon under section 9 of the said Act, as is in excess of the amount calculated at the rate as specified in corresponding entry in column(4) of the aforesaid Table, namely:-

MORE:-https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-12-2021-cgst-rate.pdf

NOTIFICATION NO-11/2021-Central Tax (Rate) ,dt. 30-09-2021 Seeks to amend notification No. 39/2017- Central Tax (Rate)

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 11/2021-Central Tax (Rate)

New Delhi, the 30th September, 2021

G.S.R. …..(E).- In exercise of the powers conferred by sub-section (1) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 39/2017-Central Tax (Rate), dated the 18th October, 2017, published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 1310(E), dated the 18th October, 2017, namely:-

In the said notification, in the Table, against S. No. 1, –
(i) in column (3), for the entry, the entry “(a) Food preparations put up in unit
containers and intended for free distribution to economically weaker sections of the society under a programme duly approved by the Central Government or any State Government;

(b) Fortified Rice Kernel (Premix) supply for ICDS or similar scheme duly approved by the Central Government or any State Government.” shall be substituted;

(ii) in column (4), in the entry, for the words “food preparations” at both the places, where they occur, the word “goods” shall be substituted;

2. This notification shall come into force on the 1st day of October, 2021.

[F. No.190354/206/2021-TRU]
(Rajeev Ranjan)
Under Secretary to the Government of India

Note: – The principal notification No. 39/2017-Central Tax (Rate), dated the 18th October, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 1310(E), dated the 18th October, 2017.

MORE:-https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-11-2021-cgst-rate.pdf

NOTIFICATION NO-10/2021-Central Tax (Rate) ,dt. 30-09-2021 Seeks to amend notification No. 4/2017- Central Tax (Rate)

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)

Notification No. 10/2021-Central Tax (Rate)

New Delhi, the 30thSeptember, 2021

G.S.R. (E).- In exercise of the powers conferred by sub-section (3) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.4/2017- Central Tax (Rate), dated the 28th June, 2017, published in theGazette of India,
Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 676(E)., dated the 28th June, 2017, namely:-

In the said notification, in the Table, after S. No. 3 and the entries relating thereto, the following serial number and the entries shall be inserted, namely:

MORE:-https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-10-2021-cgst-rate.pdf

NOTIFICATION NO-09/2021-Central Tax (Rate) ,dt. 30-09-2021Seeks to amend notification No. 2/2017- Central Tax (Rate)

TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)

Notification No. 9/2021-Central Tax (Rate)

New Delhi, the 30th September, 2021

G.S.R. …..(E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.2/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 674(E), dated the 28th June, 2017, namely:-

In the said notification, in the Schedule, for S. No. 86 and the entries relating thereto, the following S. No. and entries thereto shall be substituted, namely:

MORE:-https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-09-2021-cgst-rate.pdf

NOTIFICATION NO-08/2021-Central Tax (Rate) ,dt. 30-09-2021 Seeks to amend notification No. 1/2017- Central Tax (Rate)

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)

Notification No. 8/2021-Central Tax (Rate)

New Delhi, the 30th September, 2021

G.S.R. ……(E).- In exercise of the powers conferred by sub-section (1) of section 9 and subsection (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.1/2017-Central Tax (Rate), dated the 28th June, 2017, published in
the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 673(E)., dated the 28th June, 2017, namely:-

MORE:-https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-08-2021-cgst-rate.pdf

NOTIFICATION NO-07/2021-Central Tax (Rate) ,dt. 30-09-2021 Seeks to amend notification No. 12/2017- Central Tax (Rate) so as to implement recommendations made by GST Council in its 45th meeting held on 17.09.2021.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUBSECTION (i)]

Government of India
Ministry of Finance
(Department of Revenue)

Notification No. 07/2021 – Central Tax (Rate)

New Delhi, the 30th September, 2021

G.S.R.—–(E). – In exercise of the powers conferred by sub-sections (3) and (4) of section 9, sub-section (1) of section 11, sub-section (5) of section 15 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of
2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.12/2017- Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 691(E), dated the 28th June, 2017, namely:—

In the said notification, in the Table, –
(i) against serial number 1, in column (3), after the figures and letters “12AA”, the word, figures and letters “ or
12AB” shall be inserted;
(ii) against serial number 9AA, in column (3), after the words “hosted in India”, the words “whenever rescheduled” shall be inserted;
(iii) after serial number 9AA and the entries relating thereto, the following shall be inserted, namely : –

MORE:-https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-07-2021-2020-cgst-rate.pdf