The 54th GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in New Delhi today.
The meeting was also attended by Union Minister of State for Finance Shri Pankaj Chaudhary, Chief Ministers of Goa and Meghalaya; Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana; besides Finance Ministers of States & UTs (with legislature) and senior officers of the Ministry of Finance & States/ UTs.
Reverse Charge Mechanism (RCM) to be introduced on supply of metal scrap by unregistered person to registered person provided that the supplier shall take registration as and when it crosses threshold limit and the recipient who is liable to pay under RCM shall pay tax even if supplier is under threshold.
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A TDS of 2% will be applicable on supply of metal scrap by registered person in B to B supply.
The Reverse Charge Mechanism (RCM) in GST is a system where the recipient of goods or services is liable to pay the tax instead of the supplier. The introduction of RCM has enabled more stringent compliance measures, creating a more accountable tax-paying environment. The implementation of GST has broadened the scope and implications of RCM. Under GST. RCM isn’t restricted merely to services but could potentially encompass goods as well thereby enlarging its sphere of influence on tax administration. These changes represent a strategic move towards a more organised, compliant, and expansive tax environment in India, strengthening the country’s fiscal infrastructure.
