In a significant move, the Central Government has notified that the provisions relating to Tax Deduction at Source ( TDS ) and Tax Collection at Source ( TCS ) under the new Goods and Services Tax (GST) regime will be implemented from 1st October 2018.
The registration for these provisions has already started in the GSTN portal from earlier this year.
The new indirect tax law, GST turned one year on this July 1st.
As per the Central Goods and Services Tax (CGST) Act, the notified entities are required to collect TDS at 1% on payments to suppliers of goods or services in excess of Rs 2.5 lakh.
The Government had decided to defer the implementation of provisions relating to TDS and TCS considering the difficulties of the traders. Representations were made by e-commerce firms that it would be an additional compliance burden and would lock-down working capital for merchants selling online.
The Government had decided to rollout the TDS, TCS provisions in April. However, it was again till the end of September by the GST Implementation Committee (GIC), headed by the Revenue Secretary.
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