GST Council defers implementation of RCM until Jun 2018
Mar 26 2018
News Category: Regulatory Updates
According to media report, the Goods and Service Tax (GST) Council has deferred the implementation of reverse charge mechanism (RCM) until Jun 30. The move will benefit mutual fund distributors, who do not have a GST registration number, and those who have surrendered their GST registration number. These distributors should, however, have earnings of less than Rs. 20 lakh a year. In case of distributors with GST registration, mutual fund houses shall continue to follow forward charge mechanism, i.e., AMCs will pay the gross commission to them. Meanwhile, these distributors can avail benefit of input credit.