Union Budget 2024: GST Big Announcement Expected on RCM

Union Finance Minister Nirmala Sitharaman is going to present the Interim Budget today, ahead of the Lok Sabha elections in 2024, which would be the final budget of Prime Minister Narendra Modi’s second term. This is an interim budget, and the complete budget for the financial year 2024-25 will not be issued until the next government is formed following the general elections.

Big Announcement Expected in GST in this Interim Union Budget 2024. There is an expectation of some changes in GST under RCM for non-compliant vendors by the finance minister.

In addition, a new reverse charge-based mechanism is being implemented to improve GST compliance. Buyers with revenues over Rs.100 crore or Rs.500 crore can pay GST straight to the government, bypassing small vendors.

This shift in tax payment onus attempts to reduce the compliance burden on small firms while also facilitating simpler transactions for major enterprises engaging with smaller vendors.