GST TDS/ TCS Provisions Implementation Deferred upto 30 Sept. 2018: CBIC

GST TDS/ TCS Provisions Implementation Deferred upto 30 Sept. 2018: CBIC

The CBIC has issued a Press Release stating that implementation of provisions relating to TDS/ TCS under CGST Act, 2017 (i.e. deduction of tax at source u/s 51 and collection of tax at source u/s 52), has been further deferred/ suspended upto 30 Sept. 2018.

Implementation of GST TDS/ TCS Provisions Deferred upto 30 Sept. 2018: CBIC Press Release dt. 29 June 2018

TDS/ TCS under Sections 51/ 52 of the CGST Act, 2017 further deferred/ suspended till 30 June 2018: CBEC

As per CBEC Press Release, the GST Council has recommended on 10 March 2018 to further defer/ suspend the  implementations of the provisions relating to TDS under CGST Act, 2017 (i.e. deduction of tax at source u/s 51 and collection of tax at source u/s 52) till 30 June 2018. In the meantime, the modalities of linking State and Central Governments accounting system with GSTN will be worked out so that seamless credit is available to the registered traders whose tax is deducted or collected at source.

GST Council Recommends ‘TDS/ TCS Registration and Operational Mechanism under GST to remain Suspended till 31 March 2018’:CBEC

GST Council, in its 22nd Meeting on 6 Oct. 2017 has recommended that the mechanism for registration and operationalization of TDS/TCS provisions remain suspended till 31 March 2018. In the meantime GST Council will review the readiness of the trade, industry and Government departments and may decide to operationalise the TDS/ TCS Mechanism under GST w.e.f. 1 April, 2018 and onwards.

CBEC Notifies that Registration for TDS/ TCS under GST to begin from 18 Sept. 2017, pending Notification of Date from which deduction/ Collection to Commence

In line with the recommendation of 21st GST Council Meeting dt. 9 Sept. 2017, the CBEC has notified that registration for certain persons liable to deduct tax at source (TDS) and collect tax at source (TCS) will commence from 18 Sept. 2017 at the GST Portal. However, the date from which TDS and TCS will be deducted or collected will be notified later.

GST TDS/ TCS Registration from 18 Sept. 2017: CBEC Notification 33/2017 Central Tax dt. 15 Sept. 2017

Provision relating to TDS/  TCS under Sections 51/ 52 of the CGST/ SGST Act 2017 stands Postponed/ Deferred partly: CBEC Press Release dt. 27 June 2017

In view of the concerns of trade and industry regarding the provisions of TDS/ TCS under Sections 51/ 52 of the CGST/ SGST Act 2017 and to ensure smooth GST rollout, the CBEC/ GoI has decided to partly defer/ postpone the applicability of provisions relating thereto, i.e. no TDS/ TCS till further notification, however registration required to be obtained for TDS/ TCS in certain cases, as under:

1. The provisions of Tax Deduction at Source (Section 51 of the CGST / SGST Act 2017) and Tax Collection at Source (Section 52 of the CGST/SGST Act, 2017) will be brought into force from a future date to be communicated later.

2. Persons who will be liable to deduct/ collect tax at source will be required to take registration, but the liability to deduct/ collect tax will arise from the date of the applicability of the respective sections as may be notified later in due course.

3. The persons who were liable to be registered under Section 24(ix) of the CGST/ SGST Act, 2017 (as they were supplying goods or services through electronic commerce operator who is required to collect tax at source under Section 52) will not be liable to register till the provision of Tax Collection at Source is brought under force. In other words, persons supplying goods or services through electronic commerce operator liable to collect tax at source would not be required to obtain registration immediately, unless they are so liable under Section 22 or any other category specified under Section 24 of the CGST / SGST Act, 2017.

In short, we can say that Govt. has taken the decision to partly defer/ postpone the provisions relating to TDS/ TCS during the initial period of commencement of GST Regime w.e.f. 1 July 2017 to provide additional time to persons who are liable to deduct tax at source/ E-Commerce Companies and their suppliers to smoothly migrate and adapt with the new procedures.

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