The GST Council meeting scheduled next month has a key proposal on the agenda: to exempt companies from paying GST at the time of import, allowing them to defer the payment until the output services are performed.
This proposed change mirrors the principles of the MOOWR (Manufacture and Other Operations in Warehouse) scheme under customs, which defers customs duties on imported goods until they are removed from the warehouse.
By aligning GST compliance with this approach, the Council aims to reduce the immediate tax burden and improve cash flow position for business operating in India.
The proposed changes entail substantial amendments under the law, and with the Finance Bill recently passed, it will be imperative to see the date of implementation.
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