Notification No.: 61/2018 – Central Tax
Date of Notification: 5th November 2018
Relevant Sections and Rules:
- Central GST Act, 2017:
- Section 1(3): Commencement of provisions
- Section 51: Tax Deduction at Source (TDS)
- Supersedes/Amends: Notification No. 50/2018 – Central Tax dated 13th September 2018 (as amended by Notification No. 57/2018 – Central Tax dated 23rd October 2018)
- Integrated GST Act: Not applicable
Summary of Notification
Exclusion of Inter-PSU Supplies from TDS Provisions (w.e.f. 1st October 2018):
The Central Government, exercising its powers under Section 1(3) read with Section 51 of the CGST Act, amended Notification No. 50/2018 – Central Tax to introduce an additional proviso.
Inserted Proviso:
“Provided further that nothing in this notification shall apply to the supply of goods or services or both from a Public Sector Undertaking (PSU) to another PSU, whether or not a distinct person, with effect from 1st October 2018.”
This effectively exempts inter-PSU transactions from the scope of TDS under GST, thereby reducing unnecessary compliance burden where both the supplier and recipient are government-owned enterprises.
