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ICAI Points Out Double Taxation Under GST
October 10, 2017
The Institute of Chartered Accountants of India (ICAI) stated that the composition scheme and the provisions of reserve charge mechanism (RCM) under the Goods and Services Tax regime are causing cascading of taxes. In regard to the same, it has submitted suggestions to the government for the removal of instances of double taxation.
ICAI said that if a registered taxable person buys goods or services from a person who is not registered under the GST regime, they have to pay taxes under the RCM, which results in double taxation.
For instance, if a company procures water bottles from an unregistered taxpayer, they have to pay taxes under RCM even when they have already paid taxes on MRP basis.
