MUMBAI: Jay Jhaveri, Partner Indirect Tax, Bhuta Shah & Co LLP says, "In 54th GST council crucial issues have been addressed. Metal scrap has been brought in ambit of RCM so any person who is registered in GST buying from an unregistered supplier will have to pay RCM on the same."
#GST #GSTcouncilMeeting #Bonanza
#GST #GSTcouncilMeeting #Bonanza
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NewsTranscript
00:00The 54th GST Council meeting that was concluded yesterday hasn't lived up to the hype that
00:07it created.
00:09Most of the critical issues just like GST on healthcare insurance, airlines, etc., have
00:16been pushed either for further discussions or clarifications.
00:20The industry is hoping that some of these clarifications will come out very, very soon.
00:26However, three critical issues have been addressed.
00:30Metal scrap has been brought in the ambit of RCM.
00:34So any person who is registered in GST, buying from an unregistered supplier, will have to
00:41pay RCM on the same.
00:43Further, B2B supplies between two registered suppliers will now attract a 2% TDS levy.
00:51The government has done this move largely to cover the ambit of the huge unregistered
00:56scrap dealers.
00:58On a similar ground, rental of commercial properties has also been brought in the ambit
01:04of RCM.
01:05So any owner renting a commercial property to a registered taxpayer under GST, the registered
01:12taxpayer will now have to pay GST on the same under reverse charge mechanism.
01:17This ensures completeness as residential property was already brought in this ambit
01:22a while ago and now with commercial property, the entire circle has been completed.
01:29The idea is again not to increase tax collection but to ensure that the tax leakage caused
01:36by this move, the move will address the entire tax leakage that existed in the system.
01:42Lastly, the major pain point area in all GST departmental audits under the GST law
01:49was reconciliation between 2A and ITC registers of the companies as the officers did not have
02:00invoice level data available with them.
02:02With the IT management system now brought into place, it will be possible that just
02:08like business and corporate houses, even the GST officers will be able to get invoice
02:14level data in respect of input credit availed by businesses.
02:19Therefore, most of the mismatch issues will be addressed at the grassroot level and the
02:24litigation around same will stop.
02:28Additionally, there were some small issues like rate classification and rationalization
02:35that have been upheld in the GST council meeting and further notifications in this regard are
02:41expected very soon.