GST Panel favours omission of RCM u/s 9(4) & no incentive for digital payments
By TIOL News Service
NEW DELHI, JULY 09, 2018: THE contentious provisions in the GST laws are heading for a decent burial! The Group of Ministers (GoM), headed by the Bihar Chief Minister, Mr Sushil Modi, has favoured limited retention of the Reverse Charge Mechanism (RCM). The Panel has recommended to the GST Council that the controversial Section 9(4) may be omitted but such a provision may be retained through a new Section to be applied to certain groups of products.
Similarly, the Panel has not favoured any concessional tax rate for incentivising digital payments. It is of the view that till the time the revenue collections settle down, no tweaking or such concessions should be granted. Its recommendation is that such an incentive may be revisited next year.
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