TDS and TCS under GST to be implemented from October 1

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TDS (tax deducted at source) and TCS (tax collected at source) will be implemented under provisions of the GST law from October 1, according to a report by Times of India.

TDS/TCS-under-GST
Come October 1 and TDS and TCS will be implemented under GST.

While the Goods and Services Tax has been in force since July 2017, the government chose not to include TDS and TCS under the same, in order to provide businesses sufficient time to get accustomed to GST. While TDS and TCS were to be included under provisions of the GST Act after June 30 this year, the same was deferred, with October 1 being the new date for the same.

Under the Central Goods and Services (CGST) Act, notified entities are to collect 1 per cent TDS on the payment of goods/services which exceed Rs.2.5 lakh. States are also entitled to levy 1 per cent TDS according to state laws.

Similarly, ecommerce companies are to collect TCS (upto 1 per cent) when they make any payment to suppliers. There is a provision for states to levy 1 per cent TCS as well.

The government has also set up the office of Commissioner GST (investigation) to exclusively deal with enforcement related issues. The office will handle legislative issues and policy related problems to keep a tab on tax evasion.

Sources: Times of India, Economic Times

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