Notifications issued by CBIC regarding TDS
Exempting supplies to a TDS deductor by a supplier, who is not registered,
under section 11 (1)
Notification No.9/2017-Central Tax (Rate) (1133-F.T. dt. 28.06.2017) 28th June, 2017
In exercise of the powers conferred by sub-section (1) of section 11 of the Central
Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the
Central Government, on being satisfied that it is necessary in the public interest so to do, on
the recommendations of the Council, hereby exempts intra-State supplies of goods or services
or both received by a deductor under section 51 of the said Act, from any supplier, who is not
registered, from the whole of the central tax leviable thereon under sub-section (4) of section
9 of the said Act, subject to the condition that the deductor is not liable to be registered
otherwise than under sub-clause (vi) of section 24 of the said Act.
2. This notification shall come into force with effect from the 1st day of July, 2017.
Notifying section 51 of the CGST Act, 2017 for TDS.
Notification No. 33/2017 – Central Tax (1665-F.T. dt. 18.09.2017) 15th September, 2017
In exercise of the powers conferred by sub-section (3) of section 1 of the Central
Goods and Services Tax Act, 2017 (12 of 2017), the Central Government hereby appoints the
18th day of September, 2017 as the date on which the provisions of sub-section (1) of section
51 of the said Act shall come into force with respect to persons specified under 1clauses (a)
and (b) of sub-section (1) of section 51 of the said Act and the persons specified below
under clause (d) of sub-section (1) of section 51 of the said Act, namely:-
(a) an authority or a board or any other body, -
(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by any Government,
with fifty-one percent or more participation by way of equity or control, to carry out
any function;
(b) society established by the Central Government or the State Government or a
Local Authority under the Societies Registration Act, 1860 (21 of 1860);
(c) public sector undertakings:
Provided that the said persons shall be liable to deduct tax from the payment made or
credited to the supplier of taxable goods or services or both with effect from a date to be
notified subsequently, on the recommendations of the Council, by the Central Government.
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Seeks to bring section 51 of the CGST Act (provisions related to TDS) into
force w.e.f 01.10.2018
Notification No. 50/2018 – Central Tax (1344-F.T. dt. 13.09.2018) 13th September, 2018
[Amended by Notification Nos. 57/2018 – CT dt. 23.10.2018 (1539-F.T. dt. 30.10.2018), 61/2018 –
CT dt. 05.11.2018 (1605-F.T. dt. 15.11.2018) & 73/2018 – CT dt. 31.12.2018 (1892-F.T. dt.
31.12.2018)]
In exercise of the powers conferred by sub-section (3) of section 1 of the Central
Goods and Services Tax Act, 2017 (12 of 2017) and in supercession of the notification of the
Government of India in the Ministry of Finance, Department of Revenue No. 33/2017-
Central Tax, dated the 15th September, 2017, published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1163 (E), dated the 15th
September, 2017, except as respects things done or omitted to be done before such
supersession, the Central Government hereby appoints the 1st day of October, 2018, as the
date on which the provisions of section 51 of the said Act shall come into force with respect
to persons specified under clauses (a), (b) and (c) of sub-section (1) of section 51 of the said
Act and the persons specified below under clause (d) of sub-section (1) of section 51 of the
said Act, namely:-
(a) an authority or a board or any other body, -
(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by any Government, with fifty-one per cent. or more
participation by way of equity or control, to carry out any function;
(b) Society established by the Central Government or the State Government or a Local
Authority under the Societies Registration Act, 1860 (21 of 1860);
(c) public sector undertaking.
[2
Provided that with respect to persons specified under clause (a) of sub-section (1) of
section 51 of the Act, nothing in this notification shall apply to the authorities under the
Ministry of Defence, other than the authorities specified in the Annexure-A and their offices,
with effect from the 1st day of October, 2018.]
[3
Provided further that nothing in this notification shall apply to the supply of goods or
services or both from a public sector undertaking to another public sector undertaking,
whether or not a distinct person, with effect from the 1st day of October, 2018.]
[4
Provided also that nothing in this notification shall apply to the supply of goods or
services or both which takes place between one person to another person specified under
clauses (a), (b), (c) and (d) of sub-section (1) of section 51 of the said Act.].
1. Annexure – 1 (Section 51 of the CGST Act, 2017)
2. Inserted by Notification No. 57/2018 – CT dt. 23.10.2018 (1539-F.T. dt. 30.10.2018)]
3. Inserted by Notification No. 61/2018 – CT dt. 05.11.2018 (1605-F.T. dt. 15.11.2018)]
4. Inserted by Notification No. 73/2018 – CT dt. 31.12.2018 (1892-F.T. dt. 31.12.2018)]
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Annexure-1
Section 51 of the CGST Act, 2017
51. (1) Notwithstanding anything to the contrary contained in this Act, the Government may
mandate,––
(a) a department or establishment of the Central Government or State Government; or
(b) local authority; or
(c) Governmental agencies; or
(d) such persons or category of persons as may be notified by the Government on the
recommendations of the Council,
(hereafter in this section referred to as “the deductor”), to deduct tax at the rate of one per
cent. from the payment made or credited to the supplier (hereafter in this section referred to
as “the deductee”) of taxable goods or services or both, where the total value of such supply,
under a contract, exceeds two lakh and fifty thousand rupees:
Provided that no deduction shall be made if the location of the supplier and the place
of supply is in a State or Union territory which is different from the State or as the case may
be, Union territory of registration of the recipient.
Explanation.––For the purpose of deduction of tax specified above, the value of supply shall
be taken as the amount excluding the central tax, State tax, Union territory tax, integrated tax
and cess indicated in the invoice.
(2) The amount deducted as tax under this section shall be paid to the Government by the
deductor within ten days after the end of the month in which such deduction is made, in such
manner as may be prescribed.
(3) The deductor shall furnish to the deductee a certificate mentioning therein the contract
value, rate of deduction, amount deducted, amount paid to the Government and such other
particulars in such manner as may be prescribed.
(4) If any deductor fails to furnish to the deductee the certificate, after deducting the tax at
source, within five days of crediting the amount so deducted to the Government, the deductor
shall pay, by way of a late fee, a sum of one hundred rupees per day from the day after the
expiry of such five days period until the failure is rectified, subject to a maximum amount of
five thousand rupees.
(5) The deductee shall claim credit, in his electronic cash ledger, of the tax deducted and
reflected in the return of the deductor furnished under sub-section (3) of section 39, in such
manner as may be prescribed.
(6) If any deductor fails to pay to the Government the amount deducted as tax under sub-
section (1), he shall pay interest in accordance with the provisions of sub-section (1) of
section 50, in addition to the amount of tax deducted.
(7) The determination of the amount in default under this section shall be made in the manner
specified in section 73 or section 74.
(8) The refund to the deductor or the deductee arising on account of excess or erroneous
deduction shall be dealt with in accordance with the provisions of section 54:
Provided that no refund to the deductor shall be granted, if the amount deducted has
been credited to the electronic cash ledger of the deductee.
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