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Goods and Services Tax Council may revise norms for GST levy

Goods and Services Tax Council may revise norms for GST levy

With companies complaining about the levy of tax on allocation of salary cost of head-office employees to branches under the so-called cross-charge mechanism, the Goods and Services Tax Council will likely refer the matter to its law committee to review its applicability.

The levy has increased the cost of firms in sectors currently exempt from goods & services tax (GST) and raised the compliance burden for most others.

“References have come from many places, including some industry associations on the matter. It will be taken to the GST law committee,” a senior official told FE.

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