GST Update 3 Days to Go: The government has deferred implementation of TDS and TCS provisions
With just 3 days to go for the GST rollout, the government has deferred implementation of TDS and TCS provisions as well as exempted from registration small businesses selling on e-commerce platform.
E-commerce companies will not be required to collect 1% TCS while making payment to suppliers under GST which will be rolled out from 1 July. As per the CGST Act, the notified entities are required to collect TDS at 1% on payments to suppliers to goods or services in excess of Rs. 2.5 lakhs.This provision leahas been kept in abeyance.
Small businesses, with turnover less than Rs. 20 Lakhs, will also not be required to register themselves under the GST for selling goods or services through e-commerce portal.
This step has been taken to provide more time for persons liable to deduct tax at source/e-commerce companies and their suppliers to prepare for the historic tax reform.