The Ministers' Group is in favor of a carry over of the overlay of digital payments under the GST of a year

The ministerial committee led by Sushil Modi will recommend to the GST Board to defer A year the proposal to Encourage digital payments under the GST, citing the revenue implications of the distribution of the concessional tax rate. (Reuters)

The ministerial group chaired by Sushil Modi will recommend to the GST Board to defer for one year the proposal to encourage digital payments under the GST, citing the tax implications of the GST. application of the concessional tax rate. The committee, at its meeting today, has decided to wait for the stabilization of revenue from the Goods and Services Tax and the new tax reporting systems in the fiscal year. course before considering different GST rates for people who make payments in digital mode. Another Ministerial Committee, under Modi, on the reverse charge mechanism, decided to recommend powers to the GST Board to notify registrants who would be subject to the jurisdiction of the MRC. The meetings of the two groups of ministers (GoM) were held here today. The recommendations of these ministerial committees will be submitted to the GST Council, chaired by the Minister of Finance of the Union and including his counterparts at its next meeting on July 21.

Modi said the GoM on the digital transaction is timely to encourage digital payments as this will have repercussions on revenue. "Let GST revenues and revenues stabilize, so we can think about encouraging digital transactions."

"The GoM will recommend to the Council to think about the proposal for the digital transaction incentive again after one year.The GOM recommends postponing the proposal for a year," said the deputy minister from Bihar. To encourage digital transactions, the GST Council, at its last meeting in May, had planned to grant a 2 per cent reduction in the GST rate (when the tax rate is 3 per cent). percent or more) to consumers paying by check or digital. ] The reduction would be capped at Rs 100 per transaction. Among the five members of the GoM are Deputy Minister of Gujarat, Nitinbhai Patel, West Bengal Finance Minister Amit Mitra, Minister of Excise and Haryana Tax, Captain Abhimanyu, and the Minister of Finance of Punjab Manpreet Singh Badal

. stated that the GoM will recommend that the GST Council decide on the clbad of registrants who would be required to file taxes on the basis of reverse charge. "We recommended omitting the current section 9 (4) and introducing a new subsection 9 (4) that will allow the government, on the recommendation of the GST Board, to notify specific categories of people registered goods covered by the RCM provision, "he added.

The conditions and the date of collection of the RCM will be decided by the council, noted Mr. Modi. Under the RCM of the GST Act, registered dealers are required to make tax payments if they buy unregistered business property. Currently, the RCM, which is presented as an anti-escape measure, has been postponed until September 30th. Punjab Finance Minister Manpreet Singh Badal and Kerala Finance Minister Thomas Issac are part of the GdM on the MRC. March by the GST Board.