CBIC has notified that the provisions of Section 51 (TDS) and Section 52 (TCS) of the CGST Act 2017, i.e. TDS/ TCS under GST, shall be finally applicable from 01/10/2018. It may be noted that earlier CBIC had deferred implementation of GST TDS/ TCS Provisions upto 30/09/2018.
CBIC Central Tax Notification 51/2018 dt. 13/09/2018: TCS under GST Applicable from 01/10/2018 (Section 52 of the CGST Act 2017)
G.S.R. 869(E)- In exercise of the powers conferred by sub-section (3) of section 1 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government hereby appoints 01/10/2018, as the date on which the provisions of section 52 of the said Act shall come into force.
CBIC Central Tax Notification 50/2018 dt. 13/09/2018: TDS under GST Applicable from 01/10/2018 (Section 51 of the CGST Act 2017)
G.S.R. 868(E)- In exercise of the powers conferred by sub-section (3) of section 1 of the Central Goods and Services Tax Act, 2017 (12 of 2017) and in supersession of the notification of the Government of India in the Ministry of Finance, Department of Revenue No 33/2017 Central Tax, dated 15/09/2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number GSR 1163(E), dated 15/09/2017, except as respects things done or omitted to be done before such supersession, the Central Government hereby appoints 01/10/2018, as the date on which the provisions of section 51 of the said Act shall come into force with respect to persons specified under clauses (a), (b) and (c) of sub-section (1) of section 51 of the said Act and the persons specified below under clause (d) of sub-section (1) of section 51 of the said Act, namely:-
(a) an authority or a board or any other body,-
(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by any Government, with fifty-one per cent or more participation by way of equity or control, to carry out any function;
(b) Society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860);
(c) public sector undertakings;
(d) any registered person receiving supplies of metal scrap falling under Chapters 72 to 81 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), from other registered person; [clause (d) inserted vide Central Tax Notification 25/2024, effective 10/10/2024]
CBIC Notifications on Exemption from GST TDS Compliance
i) CBIC amends Notification 50/2018 by inserting first proviso to provide exemption from GST TDS for certain Authorities under the Ministry of Defence, GoI, vide Central Tax Notification 57/2018 dated 23/10/2018, as under:
Provided that with respect to persons specified under clause (a) of sub-section (1) of section 51 of the Act, nothing in this notification shall apply to the authorities under the Ministry of Defence, other than the authorities specified in the Annexure-A and their offices, with effect from the 1st day of October, 2018.
ii) CBIC amends Notification 50/2018 by inserting second proviso to provide exemption from GST TDS for PSU to PSU supplies, vide Central Tax Notification 61/2018 dated 05/11/2018, as under:
Provided further that nothing in this notification shall apply to the supply of goods or services or both from a public sector undertaking to another public sector undertaking, whether or not a distinct person, with effect from the 1st day of October, 2018.
iii) CBIC amends Notification 50/2018 by inserting third proviso to provide exemption from GST TDS for supplies made by government departments/ agencies and local authorities to other government departments/ agencies and local authorities, and vice versa, vide Central Tax Notification 73/2018 dated 31/12/2018, as under:
Provided also that nothing in this notification shall apply to the supply of goods or services or both which takes place between one person to another person specified under clauses (a), (b), (c) and (d) of sub-section (1) of section 51 of the said Act. [substituted vide Notification 25/2024 from 10/10/2024]
iv) CBIC amends Notification 50/2018 by substituting third proviso, vide Central Tax Notification 25/2024, effective 10/10/2024. Clause (d) above has been inserted to broaden the scope whereby registered persons receiving supplies of metal scrap (falling under Chapters 72 to 81 in the First Schedule to the Customs Tariff Act, 1975) from another registered person is required to deduct TDS @2% where the value of supply exceeds Rs 2.5 lacs. Third proviso has been substituted to exclude metal scrap transactions from exempted category of entities:
Provided also that nothing in this notification shall apply to the supply of goods or services or both, which takes place between one person to another person specified under clauses (a), (b), (c) and (d) of sub-section (1) of Section 51 of the said Act, except the person referred to in clause (d) of this notification.
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