Ludhiana : In the state versus the Centre deadlock on changes done in the e-way bill by the Punjab Taxation department without consulting Central GST (CGST) department, the former has softened its stand on the issue. Central GST department had objected to Punjab doubling the exemption limit of intrastate e-way bill from Rs 50,000 to Rs 1 lakh on all items.
In the latest notification issued by the State GST department, 11 items have been put in the negative list, which means the exemption of Rs 1 lakh will not be applicable on them. Some of the items put in this list include iron and steel in all forms, non-ferrous metals, tobacco and its products, pan masala, cigarettes and timber.
However, the development is seen as a victory for the CGST department, as sources said it had recently demanded putting certain items in negative list, saying exemption would lead to increase in malpractices.
In the fresh notification, which has been approved by State GST Commissioner Vivek Pratap Singh on October 8, the state department has made it clear that it is modifying its earlier notification of September 13 in which exemption limit for intrastate transport of goods was doubled.
The matter had taken a serious turn after Manoranjan Kaur Virk IRS, Central GST Chief Commissioner, Chandigarh Zone, shot off a letter to Union government’s special secretary John Joseph, alleging that the Punjab government and its taxation department had “unilaterally” made changes in the rules and issued a notification without mandatory consultation with her office.
Kaur had described Punjab government’s move as a “flagrant disregard and contravention of rules”. The CGST department was of the view that doubling the exemption limit for all sectors would lead to unscrupulous elements misusing the system without actually supplying goods and services, as several incidents of GST evasion and misuse of e-way bill and trading invoices were unearthed by the department in Punjab, mainly in Mandi Gobindgarh.
However, State Finance minister Manpreet Badal had then refused to reverse the decision, claiming that the changes were made according to the GST rules and that the state was going to make more changes in the eway bill to make it simpler for businessmen.
Meanwhile, the development has left the city businessmen disappointed. Inderjit Singh Navyug, president of United Cycle and Parts’ Manufacturers’ Association, said, “We are surprised that the state taxation department issued this notification without informing us and did not even make us aware about the changes. With Rs 1 lakh exemption on e-way bill withdrawn from 11 goods, the Ludhiana’s trade and industry will be hit hard.”
Source : TOI
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