- A MiG 21 fighter jet crashes in Kangra district of Himachal Pradesh: Police.
- Govt is ready for discussion on any issue raised by different political parties: PM Modi
- PM Narendra Modi calls for extensive discussion on important issues of national interest
- Two bodies pulled out of rubble of six-storey under-construction building that collapsed
BUSINESS & FINANCE
GoM favours deferment of sops for digital payments under GST by a year
The Sushil Modi led ministerial panel will recommend to the GST Council to defer by a year the proposal to incentivise digital payments under GST, citing revenue implications of doling out concessional tax rate.
The panel, in its meeting today, has decided to wait for stabilisation of revenues under Goods and Services Tax and the new return filing systems in the current fiscal before considering differential GST rates for people making payments using the digital mode.
Besides, another ministerial panel under Modi, on Reverse Charge Mechanism has decided to recommend powers to the GST Council to notify the registered persons who would come under RCM purview.
The meetings of the two Group of Ministers (GoM) were held here today.
The recommendations of these ministerial panels will be placed before the GST Council, chaired by Union Finance Minister and comprising his state counterparts, in its next meeting on July 21.
Modi said the GoM on digital transaction has decided that this is not an opportune moment to incentivise digital payments as it will have revenue implication. "Let returns and GST revenues stabilise, then we can think about incentivising digital transaction".
"The GoM will be recommending to the Council that it may think about the proposal of incentivising digital transaction again after a year. The GoM is recommending deferring the proposal for a year," the Bihar deputy chief minister said.
To incentivise digital transaction, the GST Council in its last meeting in May had discussed giving a concession of 2 per cent in GST rate (where the tax rate is 3 per cent or more) to consumers making payment through cheque or digital mode. The discount would be capped at Rs 100 per transaction.
The five member GoM on incentivising digital transaction include Gujarat Deputy Chief Minister Nitinbhai Patel, West Bengal Finance Minister Amit Mitra, Haryana Excise & Taxation Minister Capt Abhimanyu and Punjab Finance Minister Manpreet Singh Badal.
With regard to the decision on RCM, Modi said the GoM will recommend that the GST Council will decide on the class of registered persons who would be required to deposit taxes on reverse charge basis.
"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 specific class of registered persons, goods which would be covered under RCM provision," he added.
The conditions and the date for levying of RCM will be decided by the council, Modi noted.
Under the RCM in GST law, registered dealers are required to make tax payments in case they procure goods from unregistered businesses.
Currently, RCM, which is touted as an anti-evasion measure, has been deferred till September 30.
Punjab Finance Minister Manpreet Singh Badal, and Kerala Finance Minister Thomas Issac, among others are a part of the GoM on RCM, which was constituted in March by the GST Council.
- No proposal before TRAI to amend interconnection usage charges 18 Jul 2018 | PTI
- Markets open on higher note on Wednesday 18 Jul 2018 | IANS
- How the PM Awas Yojana is transforming the home-buying process 18 Jul 2018 | Agencies
- Airbus appoints new India head for its helicopters business 17 Jul 2018 | IANS
- India asks Oman to cut customs duties on chemical products 17 Jul 2018 | PTI
- Delhi airport dues: Civil Aviation Min to hold discussions with Home Min 17 Jul 2018 | PTI
- Technoology driving BFSI sector to grow: TCS 17 Jul 2018 | PTI
- Finmin approves Rs 11,336 cr capital infusion in 5 PSU Banks 17 Jul 2018 | PTI
- Tata Motors introduces AMT in Nexon mid-variant 17 Jul 2018 | PTI
- Nestle India market cap crosses Rs 1 lakh cr 17 Jul 2018 | PTI
Sunday EditionView All
15 Jul 2018 | PTI | New Delhi
Amid row over alleged use of derogatory language in a web series while referring to former Prime Minister Rajiv Gandhi, Congress chief Rahul Gandhi on Saturday said the BJP and the RSS believe that freedom of expression must be policed, while he regards it as a fundamental democratic right. “My father lived and died in the service of India...
STATE EDITIONSView All
18 Jul 2018 | Staff Reporter | RAIPUR
A two-month-old infant died due to suffocation after the door of the ‘108 Ambulance Service’ that was carrying him to a hospital malfunctioned and failed to open on time at Dr Bhimrao Ambedkar Hospital here on Tuesday. The Ambulance operators tried to open the door for a couple of hours but failed to open it on time...