The Indian Government has extended the suspension of the reverse charge mechanism (RCM) on purchase of goods or services by registered dealers from unregistered dealers within the state till September 30 next year, according to the Central Board of Indirect Taxes and Customs (CBIC). The suspension was earlier valid till September 30 this year.
With this, any registered dealer can purchase goods or services from unregistered dealers without paying goods and services tax (GST) under reverse charge till September 30 next year, according to Indian media reports.
The suspension was earlier available till March 31, 2018, and then extended to June 2018 and then to September 30.
Experts said the move will bring significant compliance relief to large businesses and encourage them to buy from unregistered dealers. (DS)
Fibre2Fashion News Desk – India