TDS provisions under GST to be implemented from Oct 1
14/09/2018 11:01

The Indian Government has said that it has notified October 1 as the date for implementing the tax deducted at source (TDS) and tax collected at source (TCS) provisions under GST law.

As per the Central GST (CGST) Act, the notified entities are required to collect TDS at 1 per cent on payments to goods or services suppliers in excess of Rs 2.5 lakh. Also, states will levy 1 per cent TDS under state laws.

As per reports, E-commerce companies will now be required to collect up to 1 per cent TCS while making any payment to suppliers under the Goods and Services Tax (GST). States too can levy up to 1 per cent TCS under State GST (SGST) law.

Commenting on the issue, EY Tax Partner Abhishek Jain told the media, "The e-commerce companies for TCS and various PSUs/ Government Companies for TDS would need to quickly gear up their ERP systems to comply with these provisions from 1st October. With audit report as well being notified, the industry would now really need to buckle up, especially given the short time frame."