Notification No. No. 25/2024 –Central Tax
Notification Date: 9th October 2024
Applicable Date: 10th October 2024
Relevant Act / Rule: Goods and Service Tax Act, 2017
Background: Deduction and Deposit of TDS under Section 51 of GST Act, 2017
Section 51 provides for deduction of tax by the government agencies (deductor) or following persons (as specified vide notification no. 50/2018 dated 13th September 2018):
with fifty-one percent or more participation by way of equity or control, to carry out any function;
Amendment: Government of India vide notification no. 25/2024 has added clause (d) (as mentioned above) whereby registered persons receiving supplies of metal scrap falling under chapter 72 to 81 in 1st schedule to Customs Tariff Act, 1975, from any other registered person are also included in the list of persons defined under section 51.
The persons (deductor) defined in section 51 are required to deduct tax from the payment made or credited to the supplier (deductee) of taxable goods or services or both where the total value of such supply, under a contract exceeds Rs. 2,50,000.
The amount so deducted shall be paid by the deductor to the government within 10 days after the end of the month in which such deduction is made along with a return Form GSTR-7 giving the details of deductions and deductees.
The deductor is also required to issue a certificate to the deductee mentioning therein contract value, rate of deduction amount deducted.
Form GST REG-7 is to be used by the deductor specified under this section to apply for registration as Tax Deductor at Source under this section.
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