Notification No.: 73/2018 – Central Tax
Date of Notification: 31st December 2018
Relevant Sections and Rules:
- Central GST Act, 2017:
- Section 1(3): Power to notify effective date
- Section 51: Tax Deduction at Source (TDS)
- Supersedes/Amends: Notification No. 50/2018 – Central Tax dated 13th September 2018 (as previously amended by Notification No. 61/2018 – Central Tax dated 5th November 2018)
- Integrated GST Act: Not applicable
Summary of Notification
Exclusion of Intra-Governmental Supplies from TDS Provisions under Section 51:
The Central Government, on the recommendation of the GST Council, amended Notification No. 50/2018 – Central Tax by inserting a third proviso to exempt certain intra-governmental transactions from the applicability of TDS under Section 51.
Inserted Proviso:
“Nothing in this notification shall apply to the supply of goods or services or both which takes place between one person to another person specified under clauses (a), (b), (c), and (d) of sub-section (1) of section 51 of the said Act.”
This means that TDS provisions will not apply when the transaction is between two government entities (such as government departments, local authorities, PSUs, or societies specified under Section 51(1)). The amendment aims to avoid redundant tax deduction between government bodies.
