GoM to meet today, discuss simplification of GST returns

A Group of Ministers (GoM) under Bihar Deputy Chief Minister Sushil Modi will meet tax experts and representatives from industry on the Goods and Services Tax (GST) return simplification, here today.

Approximately 40 industry and trade bodies, and 20 tax experts are expected to be a part of the meeting.

Earlier on Monday, a GoM meeting was held, which deliberated on bringing back reverse charge mechanism.

The GST Council in its last meeting had decided to defer reverse charge mechanism (RCM) until June 30.

However, some states had insisted that RCM be reintroduced, as it will help tax authorities to plug revenue leakages.

The GoM was constituted under Modi last month to iron out issues being faced by businesses under the reverse charge mechanism.

Reverse charge mechanism paves way for the recipient of a good or service to pay tax, which is otherwise paid by the supplier.

The charge is applicable on a registered dealer, if he/she buys goods from a dealer not registered under the GST.

The committee is aiming to bring certain categories of taxpayers such as composition scheme dealers, and certain categories of goods and services under the reverse charge mechanism.

Punjab Finance Minister Manpreet Singh Badal, and Kerala Finance Minister Thomas Issac, among others are a part of the GoM.