An opinion poll run by Cafemutual reveals that 79% of the total respondents wants the mutual fund industry to move towards a reverse charge mechanism (RCM) of Goods and Services Tax (GST) to reduce the compliance burden.
Reverse charge mechanism ensures deduction of GST at the fund house level. In this scenario, while distributors cannot claim input credits on GST under RCM, they will not be required to raise any invoice or do the cumbersome GST compliance.
