About four dozen amendments in the GST Act are being implemented from 1st February, which are taking respiration of relief in the industry and there are signs of anxiety. Among these, the concessions under reverse charge mechanism (RCM), and the notification of the implementation of it on certain types of dealers, have created confusion among traders that reverse charge is also being implemented from 1st February. Although official sources and experts say that unless the special dealers are notified, reverse charge can not be considered as applicable. During the discussion on the GST revisions by the Ph.D. Chamber of Commerce and Industries on Thursday, top officers and experts have examined many amendments.
Under the amendments in the sub-section 9 (4) of GST Act 2017, the rebate of 5000 rupees for reverse charge has been canceled on the purchase from unregistered dealers, but in the industry it is being convinced that all the unregistered dealers are now On the kind of supply, the reverse charge will take place from February 1.Bimal Jain, chairman of the Indirect Tax Committee of the PhD Chamber, said: “In the revised law, the old system has gone down and the reverse charge will only look for certain goods or services for certain types of registered dealers. But the government has not yet notified that particular dealer or goods. Until it gets notified, the reverse charge will not take place from February 1. Many industry and trade associations were warning their members about reverse charge.
Krishna Mohan Gupta, Convenor, GST Committee of Federation of Paper Merchants Association said, “Our experts have taken this as the concessions as amendments are implemented and exemptions till September have ended and specificified registered person has not been notified yet. In this case, RCM will be applicable on every supply from unregistered dealers from 1st February. Most experts believe that the government should notify the specialty dealers and goods as well as amendments. Concerns are being made in the industry regarding two special provisions being implemented from 1 February. If a business or company is registered in more than one state and did not submit tax for any reason in a state, now the lawful government has got the right to tax collection from other branch of the state.
Traders say that credit transfershould also be allowed with a lithium transfer, otherwise it would be discriminating with the industry. Likewise, for appeals in the tribunals and tribunals till date, 10% and 20% of the disputed amount had to be deposited in advance, but now 50 crores and 100 crores have been capped respectively. It is also being opposed in the industry. Experts believe that in the absence of such a huge amount people will be deprived of justice. It should be 10 million like the excise and service tax regime. However, many concessions are being met under the amendments. Food and Beverage traders will be able to get input credit. Different registrations can be done in terms of Place of Business.
Multiple invoices will also be allowed to issue a single credit note or debit note. The turnover limit for composition dealers has now increased from one crore to 1.5 crore and up to 50 lakh service providers will also get the benefit of the scheme. Most industry representatives and experts are desperate to announce that the government has announced to bring new returns from April 1, 2019 and keep it on the pilot basis for three months, but its utility has not been online yet. In such a case, it can be like GSTR 2 and 3. Annual return and audit deadline has also been extended till June 30, but the industry is demanding its facility online too soon.