Applicability of TDS / TCS provisions of GST…… approaching… 1st Oct 2018

Writer: CS Payal Kataria

Key points to remember:

 Provisions of Section 51 & 52 of GST Act will be applicable from 1st Oct 2018
 Relevant notifications in this matter are notification no. 50/2018 central tax and notification no. 51/2018 central tax dated 13th Sep 2018
 E-commerce companies need to collect tax at source from Oct 1, 2018

 E Commerce operators need to take registration in every state from where vendor will make supply
 In case of foreign e-commerce platform, there will be no TCS liability if the seller is based outside India, in rest of cases even foreign e-commerce operators need to take registration in every state from where vendor will make supply
 Notified entities have to deduct 1% state GST and 1% central GST on intra-state supplies of over 2.5 lakh. In the case of inter-state supplies of over 2.5 lakh, TDS will be 2% IGST
 Every e-commerce operator not being an agent, shall collect an amount calculated at a rate of 0.5% of the net value of intra-state taxable supplies made through it by other suppliers, where the consideration w.r.t. such supplies is to be collected by the said operator – notification no. 52/2018 central tax. Collect 0.5% State GST and 0.5% Central Tax and 1% integrated tax
 Main achievements through these provisions are to check and curb tax evasion, as TDS/TCS will leave trail of transaction

Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the authors nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this document nor for any actions taken in reliance thereon.

Readers are advised to consult the professional for understanding applicability of this writeup in the respective scenarios. While due care has been taken in preparing this writeup, the existence of mistakes and omissions herein is not ruled out. No part of this writeup should be distributed or copied (except for personal, non-commercial use) without our written permission.

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