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The GST ministerial panel led by Bihar Deputy Minister of State, Sushil Modi, delivered two key points – the reverse charge mechanism and digital payment incentives – at its Sunday meeting, stating that slow decision-making.
The GST Council will meet on July 21st after more than two months to discuss issues including the outcomes of the GoM meetings.
omit the reverse charge mechanism (RCM) provision of the GST Act under which registered taxpayers purchasing non-registered taxpayers must file the GST.
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recommended to the GST Board to impose the reverse charge only on a clbad of registered taxpayers .
"We recommended omitting section 9 (4) of the GST Act and replacing it with another o authorizing the Board to decide the clbad of taxpayers registered for the MRC. Traders have raised the question of the compliance burden that the reverse charge mechanism will entail. This will indeed be a big problem. So we left it up to the Council to decide, "said Modi
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The government has postponed the reverse charge mechanism since last October. The Center wants to apply it under the scheme of the composition, a uniform tax regime for small taxpayers.
Unlike the usual practice of sellers who file the tax with the government, the l & # 39; The buyer does this under the RCM: TPS: A Year of Learning and Success
Traders have argued that reporting requirements will increase, which will increase the difficulties of many small taxpayers. Small taxpayers report their turnover in a single line
In addition, composing traders may lose the competitive advantage that they have because of a rate of return. lower taxation
Digital Payment Incentive
The Panel deferred the proposal to encourage digital payments by two percentage points until 2019-2020 because of impact on revenue.
"We want to wait for the GST revenues to stabilize. So digital payment incentives should be considered in 2019-2020, "said Modi.
The panel calculated an annual cost of Rs 140 billion on the chessboard because of digital incentives.
According to the proposal, a percentage of two a one-off discount had to be granted to those who were paying numerically, subject to a ceiling of 100 rupees per transaction.
This provision was to be available for business-to-consumer transactions (B2C) for goods and services subject to a tax rate of 3% per cent or more The incentive could include a 1% concession on the central GST and 1% on the GST. 39 State
Another view was to have a "negative list" of articles on which this incentive would not apply.
composed of West Bengal's finance minister , Amit Mitra, Deputy Minister Gujarat Nitinbhai Patel, Minister of Excise and Tax Haryana, Captain Abhimanyu and the Punjab Finance Minister, Manpreet Singh Badal
. The average value per transaction (debit and credit card transaction) was Rs 1 833.
Transactions less than Rs.1000 accounted for 16% of digital transactions, Rs1000-2000 for 14% and more. 2,000 rupees. 19659002] In 2017-2018, the number of digital transactions was about 18 billion.
Although the concession may mean a loss of revenue, the government hopes that improved compliance and increased demand will offset this loss. 9025]! Function (f, b, e, v, n, t, s)
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