A newly formed state-centre IGST panel will convene on Sept. 20 to discuss ways to tackle the "negative balance" on Integrated Goods and Services Tax, according to people familiar with the matter.
The negative balance issue arises when buyers take input tax credit on the GST paid to sellers on purchase of goods. However, if the seller cancels the invoice, it shows as a negative balance at the buyer's end in the portal.
The panel, convened by Additional Revenue Secretary Vivek Aggarwal, aims to address challenges in distributing IGST among states, the Finance Ministry sources said. This meeting follows the 54th GST Council meeting on Sept. 9, which discussed the negative balance issue.
The panel is expected to submit its report to the GST Council by the end of October, the people quoted above said, adding that the report will likely be taken up by the GST Council in November.
(This is a developing story.)
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