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.
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