Implementation of TDS Provisions under Section 51 – Effective from 1st October 2018

Notification No.: 50/2018 – Central Tax
Date of Notification: 13th September 2018
Relevant Sections and Rules:

• Central GST Act, 2017:
  • Section 51(1): Tax Deduction at Source (TDS) by notified persons
  • Section 1(3): Commencement of provisions
• Supersedes: Notification No. 33/2017 – Central Tax dated 15th September 2017 (except for actions already undertaken)
• Integrated GST Act: Not applicable

Summary of Notification

Commencement of TDS Provisions under Section 51 (Effective from 1st October 2018):
The Central Government, in exercise of powers under Section 1(3) of the CGST Act, notified 1st October 2018 as the date of commencement of Section 51 relating to Tax Deduction at Source (TDS).

This provision is applicable to the following classes of deductors specified under Section 51(1)(a) to (d):

1. Government Entities:
   • Authorities or boards or bodies established by Acts of Parliament or State Legislatures
   • Entities established by Government with ≥ 51% equity or control
2. Government Societies:
   • Societies set up by the Central or State Government or Local Authority under the Societies Registration Act, 1860
3. Public Sector Undertakings (PSUs)

These entities are now required to deduct TDS at the prescribed rate under GST law on specified taxable supplies, effective from the notified date.

Source: Notification No.: 50/2018 – Central Tax