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India: Ministry of Finance announces amendments to GST regulations- updated

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Melting Scrap
By
BigMint Bureau
476 Reads
9 Oct 2024, 18:17 IST
India: Ministry of Finance announces amendments to GST regulations- updated

  • Latest notification to come into effect from 10 Oct'24

  • Aims to streamline tax framework, bring transparency

On 8 October 2024, the Indian government announced a series of notifications amending the Goods and Services Tax (GST) regulations, specifically for metal scrap.

This notification will take effect on 10 October 2024 and serves as an update on the previous notification No. 4/2017-Integrated Tax (Rate), first published on 28th June 2017, with the most recent amendment occurring in October 2023.

The Ministry of Finance has introduced a Reverse Charge Mechanism (RCM) for metal scrap transactions. From 10 October 2024, registered buyers will be required to pay GST on purchases made from unregistered sellers and issue self-invoices in accordance with the CGST Act.

Metal scrap under tariff headings 72-81 includes materials like iron, steel, copper, aluminum, and other metals.

Supplies from unregistered persons: The reverse charge mechanism (RCM) applies when an unregistered person supplies scrap to a registered entity.

Impact on registered buyers: Registered buyers must pay GST on behalf of unregistered suppliers, ensuring tax compliance.

Rationale behind: The change promotes transparency in the metal scrap industry by preventing tax evasion and revenue leakages, and holding registered buyers accountable for unregistered suppliers.

9 Oct 2024, 18:17 IST

 

 

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