Recommendation on digital transaction concession postponed

Recommendation on digital transaction concession postponed

Under GST (goods and services tax), there will be no concession on tax for digital transaction .This decision was taken in a meeting which was headed under the chairmanship of Sushil Kumar Modi, Bihar Deputy chief minister and council member of GST .The meeting was held between  two groups of ministers at New Delhi. In the meeting, under GST, 2% concession on tax for digital transaction and maximum of 100 Rs. relaxation per transaction has been  postponed as recommended in the meeting. Under GST it has been also recommended that the right for taking decision on reverse charge will be given to GST council. Final decision will be taken by the GST Council in next meeting on 21st July in New Delhi.

Mr. Modi said that it has been recommended in the GST meeting that 2% concession on the tax for digital transaction and maximum of 100 Rs. relaxation per transaction has been deferred. In the coming days there can be rise in states revenue due to digital transaction but at present loss of  Rs 12,000 crore can be estimated. The GST council will think about the proposal of boosting digital transaction later after the revenue collection get stabilize this year.

GST act section 9(4) is deferred; under which if any registered trader take goods or service from unregistered trader then registered trader will have to pay tax under RCM (reverse charge mechanism) which has currently been postponed till 30 September. With regard to the decision on RCM, Modi said the group of members will recommend that the GST council will decide on the class of registered trader who would be required to deposit taxes on reverse charge basis.

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Final decision on both recommendations by group of ministers will be taken in next GST council meeting.

 

 

 

Sunisha Patel

Newsnet Intern

 

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