GST provisions on reverse charge mechanism, TDS/TCS deferred by 3 mths till Sep 2018
The revenue department has decided to keep in abeyance GST provisions relating to reverse charge mechanism, Tax deducted at source (TDS) and Tax collected at source (TCS) for another three months till September-end.
The GST Council in its meeting on March 10 had suspended the provision for deduction of TDS and collection of TCS, as well as implementation of the reverse charge mechanism (RCM) till June 30.
“The GIC has decided to postpone by three months the TDS/TCS and RCM provisions. Notification will be issued shortly. The GIC decision has been circulated to the states for issue simultaneous notification, the official told PTI.
With this, e-commerce companies can heave a sigh of relief as they will not be required to collect 1 per cent TCS while making payment to suppliers under the Goods and Services Tax (GST).
As per the Central GST (CGST) Act, the notified entities are required to collect TDS (Tax Deducted at Source) at 1 per cent on payments to goods or services suppliers in excess of Rs 2.5 lakh.
GST has been rolled out from July 1, 2017, and transformed India into a ‘one nation, one tax’.
Besides, the reverse charge mechanism, under which registered dealers are required to make tax payments in case he procures goods from unregistered businesses, too stands deferred till September-end.
The law review committee, comprising officers from the Centre and states, had earlier suggested reworking Section 9(3) of Central GST Act by bringing composition scheme dealers in the purview of reverse charge mechanism.
A ministerial panel under Bihar Deputy Chief Minister Sushil Modi was constituted in March to iron out issues being faced by businesses under the reverse charge mechanism.
Source : Business Standard.com
June 26 2018. 18:27 IST
K.C.MAHATO is expert in GST Consultancy and has an experience of more than 10 years in Indirect tax , Direct Taxes and the accounting profession. He is also giving GST Practical Training to Students and SME Traders. He provide services that most effectively meet client needs. Her experience is concentrated in performing GST Laws & Practices and compliances of gst in a variety of industries.
