As per News Reports, the provisions relating to Reverse Charge Mechanism (RCM), TDS and TCS under GST have been further Deferred by Revenue Deptt. for 3 months, i.e. from 30 June to 30 Sept. 2018. Earlier the GST Council had deferred implementation of RCM, TDS and TCS under GST, upto 30 June 2018.
Reportedly, the GST Implementation Committee (GIC) of the GST Council, has decided to keep the provisions under GST law, relating to TDS, TCS and RCM, in abeyance for a further period of three months upto 30 Sept. 2018, for which CBIC will issue the Notification shortly.
With this, e-commerce companies can heave a sigh of relief as they will not be required to collect 1 per cent TCS while making payment to suppliers under the Goods and Services Tax (GST).
As per the Central GST (CGST) Act, the notified entities are required to collect TDS (Tax Deducted at Source) at 1 per cent on payments to goods or services suppliers in excess of Rs 2.5 lakh.
Besides, the reverse charge mechanism, under which registered dealers are required to make tax payments in case he procures goods from unregistered businesses, too stands deferred till September-end.
The law review committee, comprising officers from the Centre and states, had earlier suggested reworking Section 9(3) of Central GST Act by bringing composition scheme dealers in the purview of reverse charge mechanism.
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