Provision of RCM under GST may be deleted : GOM

Provision of RCM under GST may be deleted : GOM :The Group of Ministers (GoM) today decided to make a recommendation to the GST Council to delete the provisions relating to reverse charge mechanism ( RCM ) under section 9(4) of the Central Goods and Services Tax Act , Bihar Finance Minister Sushil Modi said today. A final decision in this regard may be taken by the GST Council in its next meeting, Modi said. Under the reverse charge mechanism, registered dealers are required to pay tax in case they buy goods from unregistered dealers or businesses. On June 29, the government deferred the reverse charge mechanism for another three months till Sept. 30, after deciding to keep the reverse charge mechanism in abeyance till June 30. In fact, the Law Review Committee had recommended it in January 2018 itself. But some states having historically Purchase Tax were insistent. So, the draconian provision of RCM under Section 9(4) of CGST Act is highly likely to be omitted.