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Group Of State Finance Ministers Recommends Deferment Of GST Discount On Digital Payments
Swarajya Staff
Jul 09, 2018, 04:49 PM | Updated 04:49 PM IST
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A committee of 'Group of Ministers (GoM) on incentivising digital payments in Goods and Services Tax (GST) regime', wants GST discount on digital payments to be deferred, the Hindu Business Line has reported.
“In principle’, we support GST discount in digital payments. However, considering the current revenue situation, it would be better to wait for some more time. Accordingly, we have proposed to defer this proposal,” Sushil Kumar Modi, Chairman of the Group and Deputy Chief Minister of Bihar, is quoted to have said. “The proposal could be considered after one more year of revenue collection under GST,” he added.
The proposal says “a concession of 2 per cent in GST rate on B2C (Business to Consumer) supplies, for which payment is made through digital mode [1 per cent each from applicable CGST and SGST rates, if the applicable GST rate is 3 per cent or more] subject to a ceiling of Rs. 100 per transaction.”
It is reported that incentivisation of GST for digital payments will affect revenues by Rs 14,000 to 15,000 crore.
The committee is also reported to have discussed about Reverse Charge Mechanism (RCM). Under RCM, the receiver is liable to pay GST to the government instead of the supplier. “We have recommended omitting the present Section 9(4) and introducing a new Section 9(4), which will permit the government, on the recommendations of the GST Council, to notify a specific class of registered persons and goods who would be covered under the RCM provision,” Modi is reported to have said.
Section 9 (4) of Central Goods and Services Tax (CGST) Act, 2017 and section 5(4) of Integrated Goods and Services (IGST) Act, 2017 provides for the RCM.
According to the report, Modi said, “We have decided to recommend for empowering GST Council to finalise goods for which RCM to be made applicable”.
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