Business Mantra News
Government has taken the decision to further postpone the “Reverse Charge Mechanism” under the Goods and Services Tax till September 30, 2018.
- It is a known fact that, under Reverse Charge Mechanism tax is charged on the goods and/or services purchased from unregistered traders/manufacturers and the same is being deposited with the authorities.
- This was one of the ways and means by which tax was being evaded. To curb this mal-practice, the Government has been taking steps, otherwise it becomes the responsibility of the buyer to pay tax if goods and services are bought from an unregistered dealer.
- Previously this system was to be implemented from 1st of July, 2018 after may postponements.
- Affected traders/manufacturers have expressed their concern due to increase of workload, if the Reverse Charge Mechanism is implemented
Therefore, the Government has decided to wait for another three months till 30th September, 2018 on the issue of Reverse Charge Mechanism.