Rate

The GST is imposed at variable rates on variable items. The rate of GST is 18% for soaps and
28% on washing detergents. GST on movie tickets is based on slabs, with 18% GST for tickets
that cost less than ₹100 and 28% GST on tickets costing more than ₹100 and 28% on
commercial vehicle and private and 5% on readymade clothes. [27] The rate on under-construction
property booking is 12%.[28] Some industries and products were exempted by the government and
remain untaxed under GST, such as dairy products, products of milling industries, fresh
vegetables & fruits, meat products, and other groceries and necessities. [29]
Checkposts across the country were abolished ensuring free and fast movement of goods.
[30]
 Such efficient transportation of goods was further ensured by subsuming octroi within the
ambit of GST.
The Central Government had proposed to insulate the revenues of the States from the impact of
GST, with the expectation that in due course, GST will be levied on petroleum and petroleum
products. The central government had assured states of compensation for any revenue loss
incurred by them from the date of GST for a period of five years. However, no concrete laws
have yet been made to support such action. [31] GST council adopted concept paper discouraging
tinkering with rates.[32]

Dissatisfaction with payments floor[edit]

WA recorded very low levels of infections by both national and international standards during
the COVID-19 pandemic, allowing the state to live under only limited restrictions compared to the
lockdowns seen in the eastern states. This resulted in little disruption to the state's economy
relative to other states and territories, and combined with substantially increased iron ore
royalties (one of the state's main exports that saw a substantial price rise in 2020 and 2021) led
to the state recording the only surplus in the nation: $5.6 billion. [22]
On 4 August 2021, the Victorian Legislative Assembly established a public inquiry into the state's
"share of federal GST funding". [23] The governments of Tasmania, the Australian Capital Territory,
and South Australia all made submissions opposing the new model of distribution, while WA
made a submission supporting the reform. [24] The inquiry is due to report on 30 March 2022. [25]
NSW Liberal Treasurer Dominic Perrottet called McGowan the "Gollum of Australian politics" and
demanded a review of the GST floor; [26] Victorian Treasurer Tim Pallas claimed the GST formula
was being "manipulated" in WA's favour at the expense of the other states, [22] and suggested the
federal parties' support for the reform was intended to win support in Western Australia for
the 2022 federal election.[27]
Perrottet became NSW Premier in October and said his government would pursue a new GST
distribution scheme.[28] However, Morrison (who became leader of the federal Liberals and Prime
Minister in August 2018) and Labor opposition leader Anthony Albanese both said they would not
consider changing the formula implemented in 2018. [29] McGowan drew some media attention
after joking he would take a spear to meetings with Perrottet during a press conference in which
he dismissed the NSW complaint.[30][31]
South Australia also announced an inquiry into the distribution formula, which gained the support
of the Victorian and Tasmanian state governments.[32] Treasurer Rob Lucas said the state
government wanted the "no worse-off" guarantee to be permanent and the Productivity
Commission inquiry scheduled for 2027 to be brought forward. [33]

References
e-Way Bill
An e-Way Bill is an electronic permit for shipping goods similar to a waybill. It was made
compulsory for inter-state transport of goods from 1 June 2018. It is required to be generated for
every inter-state movement of goods beyond 10 kilometres (6.2 mi) and the threshold limit
of ₹50,000 (US$660).[33]
It is a paperless, technology solution and critical anti-evasion tool to check tax leakages and
clamping down on trade that currently happens on a cash basis. The pilot started on 1 February
2018 but was withdrawn after glitches in the GST Network. The states are divided into four zones
for rolling out in phases by end of April 2018.
A unique e-Way Bill Number (EBN) is generated either by the supplier, recipient or the
transporter. The EBN can be a printout, SMS or written on invoice is valid. The GST/Tax Officers
tally the e-Way Bill listed goods with goods carried with it. The mechanism is aimed at plugging
loopholes like overloading, understating etc. Each e-way bill has to be matched with a GST
invoice.
Transporter ID and PIN Code now compulsory from 01-Oct-2018.
It is a critical compliance-related GSTN project under the GST, with a capacity to process 75 lakh
e-way bills per day.