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
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