25September

14 April 2018 2018

GST notification and circular updates – TDS and TCS made effective
from 1 October 2018 and audit report format notified, GST on PSLC

Recently, the Central Board of Indirect Tax and  Established by any government
Customs (CBIC) has issued various notifications to
bring into effect the provisions of tax deducted at With 51 per cent or more participation by way of
source (TDS) and tax collected at source (TCS) from 1 equity or control, to carry out any function;
October 2018 and to notify the GST Audit and
reconciliation form.  The society established by the Central
Also, a circular has been issued to clarify the Government or the State Government or a
mechanism to discharge GST on Priority Sector Local Authority under the Societies Registration
Lending certificate (PSLC). Act, 1860

1. Tax collected at source (TCS)  Public sector undertakings

Section 52 of the Central Goods or Services Tax The said provision shall be effective from 1 October
Act (CGST) requires every electronic commerce 2018.
operator to collect tax at source at a prescribed [Notification 50/2018 – Central Tax dated 13
percentage of the net value of taxable supplies September 2018]
made through it by other suppliers where the
consideration with respect to such supplies are 3. GST Audit report and reconciliation statement
collected by such operator.
By virtue of rule 80(3) of the Central Goods and
The said provision shall be effective from 1 October Services Tax Rules, every registered person having
2018. an aggregate turnover in a financial year exceeding
INR2 crore are required to get its annual account
[Notification 51/2018 – Central Tax dated 13 audited and reconciliation statement duly certified in
September 2018] Form GSTR-9C needs to be submitted
electronically by 31 December.
2. Tax deducted at source (TDS)
The said form GSTR-9C has been notified.
Section 51 of the CGST Act requires deduction of
tax at source at two percentage [1% CGST + 1% [Notification No. 49/2018 – Central Tax dated 13
SGST] of the value of supply (excluding GST), September 2018]
where the value of such supply under a contract
exceeds INR2,50,000 by the following 4. GST on Priority Sector Lending certificate

 Department or establishment of the Central Circular has been issued to clarify that GST on
Government or State Government; or PSLC for the period 1 July 2017 to 27 May 2018
shall be required to be paid by the seller bank on a
 Local Authority; or forward charge basis and the GST rate of 12 per
cent shall be applicable on such supply.
 Government agencies; or
[Circular No. 62/36/2018-GST dated 12
 An authority or a board or any other body,- September 2018]

 Set up by an Act of parliament or a state

legislature; or
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Tel: +91 141 – 7103224 Tel: +91 0120 386 8000
Chandigarh
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Sector 8C, Madhya Marg, Syama Business Centre, 9th floor, Business Plaza,
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Tel: +91 172 664 4000 Vytilla, Kochi – 682 019. 36/3-B, Koregaon Park Annex,
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KRM Towers, Kolkata Tel: +91 20 6747 7000
Ground Floor, 1, 2 & 3 Floor, Unit No. 604,
Harrington Road, 6th Floor, Tower – 1, Vadodara
Chetpet, Chennai – 600 031. Godrej Waterside, Ocean Building, 303, 3rd Floor,
Tel: +91 44 3914 5000 Sector – V, Salt Lake, Beside Center Square Mall,
Kolkata – 700 091. Opp. Vadodara Central Mall,
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Tel: +91 0866 669 1000

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