GST PROVISIONS FOR TDS AND TCS
Query (Issue) Started By: – SHUBHAM SHARMA Dated:- 26-8-2017 Last Reply Date:- 26-8-2017 Goods and Services Tax – GST
Got 11 Replies
GST
Sir
As the provisions for TDS and TCS has not been enabled by the GSTIN, so, how can they purchase goods / consumes services from persons who had been already migrated from VAT/ Service Tax to GST regime.
So how should they proceed ?
Reply By SHUBHAM SHARMA:
The Reply:
In the above post they meant by persons who were liable to deduct TDS under VAT Law.
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
TDS is governed by Section 51 and TCS is governed by Section 52 pf CGST Act, 2017. Both the sections are yet to be brought into force. Therefore GSTN has not enabled these provisions.
As per Notification No. 1/2017-Central Tax dated 19.6.2017 Central Government has appointed the 22nd day of June, 2017, as the date on which the provisions of sections 1, 2, 3, 4, 5, 10, 22, 23, 24, 25, 26, 27, 28, 29, 30,
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t hospital who previously under the VAT regime purchases goods / consumes services from registered dealers under VAT for self consumption and deduct TDS thereon.
But under GST as the provisons for TDS has not been enabled yet, how should they proceed now?
Reply By Himansu Sekhar:
The Reply:
Section 51 has not been enacted means TDs is not applicable. Hospital will not deduct any TDs
Reply By SHUBHAM SHARMA:
The Reply:
Sir
Can they deduct VAT ?
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
Section 51 of CGST Act, 2017 stipulates that "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
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om 1.7.2017 no State Government can levy and collect VAT.
Reply By SHUBHAM SHARMA:
The Reply:
Sir
Mean to say that till the time the GST provisons has not been enabled , the supplier providing goods and services to the hospital will discharge GST liability on their own treating it a B2C transaction and hospital will make payment to them of the whole invoice amount without deduction of any TDS.
Reply By SHUBHAM SHARMA:
The Reply:
And what are the consequences if the hospital had already deducted VAT of the suppliers and also paid the same to the VAT Department?
Reply By Himansu Sekhar:
The Reply:
The supplier will pay the entire tax.
Reply By Himansu Sekhar:
The Reply:
Take up the matter with the hospital authorities
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
On or after 1.7.2017 if the hospital collects VAT it is without authority of law. Hence even if it is deposited with the Government the same is refundable to the person concerned.
Discussion Forum – Knowledge
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