16th MeetingPre-Launch

16th GST Council Meeting — E-Way Bill, Lottery & Composition

Held on June 11, 2017 in New Delhi, the 16th meeting finalized E-Way Bill rules for goods movement, settled the lottery taxation debate with a dual-rate structure, and confirmed Composition Scheme thresholds — just 19 days before GST launch.

11 June 2017 New Delhi

16th

Meeting Number

11 Jun 2017

Date

New Delhi

Location

Arun Jaitley

Chairperson

E-Way Bill

Key Topic

Dual Rate

Lottery Decision

₹75 Lakh

Composition Limit

19 Days

Days to Launch

Key Decisions

E-Way Bill Rules Finalized

E-Way Bill mandatory for inter-state movement of goods exceeding ₹50,000 in value. Electronic generation via GST portal. Bill valid for defined distances: 100 km per day for normal cargo, 300 km for over-dimensional cargo.

Lottery Taxation — Dual Rate

State-organized lottery taxed at 12% GST. State-authorized (private) lottery taxed at 28% GST. Face value of ticket to be the taxable value. Resolved long-standing debate between states on uniform vs differential taxation.

Composition Scheme Tweaks

Composition threshold fixed at ₹75 lakh (₹50 lakh for special category states). Composition dealers cannot make inter-state supplies or supply through e-commerce. Must pay tax at flat rates: 1% for manufacturers, 2.5% for restaurants, 0.5% for traders.

GST Network (GSTN) Readiness

GSTN confirmed technology readiness for July 1 launch. Migration of existing taxpayers (80+ lakh) from state VAT and central excise to GST portal. Provisional IDs issued. Return filing system testing completed.

Transition Provisions Finalized

TRAN-1 form for carrying forward existing CENVAT/VAT credit into GST regime. Credit of duty paid on closing stock for unregistered dealers. 60-day window for filing TRAN-1 from appointed date.

Anti-Profiteering Authority

Confirmed establishment of National Anti-Profiteering Authority (NAA) to ensure businesses pass on GST rate reduction benefits to consumers. Standing Committee and State Screening Committees to be set up.

Frequently Asked Questions

What was the E-Way Bill rule decided in the 16th meeting?
The 16th GST Council meeting finalized E-Way Bill rules requiring electronic permits for inter-state movement of goods worth over ₹50,000. The bill must be generated on the GST portal before goods movement begins, with validity based on distance (100 km/day for normal cargo). This was later implemented from April 2018 (inter-state) and June 2018 (intra-state).
How was lottery taxation decided?
A dual-rate structure was adopted: 12% GST for state-organized lotteries (run by state government directly) and 28% GST for state-authorized lotteries (run by private parties with state permission). This was later changed to a uniform 28% rate from March 2020 by the 39th Council meeting.
What is the Composition Scheme threshold decided?
The composition threshold was set at ₹75 lakh annual turnover (₹50 lakh for special category states like NE states). Composition dealers pay flat rates (1% manufacturers, 2.5% restaurants, 0.5% traders) but cannot claim ITC, make inter-state supplies, or sell through e-commerce platforms.
What transition provisions were finalized?
TRAN-1 form was finalized allowing businesses to carry forward existing CENVAT credit, VAT credit, and entry tax credit into the GST regime. Unregistered dealers could claim credit on closing stock using prescribed rates. A 60-day window from July 1 was given for TRAN-1 filing (later extended multiple times).
15th Meeting17th Meeting

Track All GST Council Decisions

From E-Way Bill to Composition Scheme — Laabam.One keeps your business compliant with every council decision automatically.

View All Meetings