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TDS Concept for the Metal Scrap Industry Under GST

TDS Concept Under GST for the Metal Scrap Industry

The provisions for Tax Deducted at Source (TDS) under GST as specified in section 51 of the CGST Act, were initially restricted to the government entities and public sector units (PSUs). Below mentioned are the suggestions of the GST council in its 54th meeting, the Notification No. 25/2024-CT dated 9th October 2024 has been issued by the CBIC extending the scope of GST TDS to include the metal scrap sector within it.

Central Tax GST Notification No. 25/2024 Date

The revisions introduced by Notification No. 25/2024-Central Tax came into force on October 10, 2024. All the transactions on or after the same date should adhere to the updated TDS provisions under GST.

What is the Scope?

The amendment comprises registered individuals obtaining the metal scrap categorized under Chapters 72 to 81 of the Customs Tariff Act, 1975. It assures that Under GST the TDS provisions apply to a wider range of metal scrap transactions.

What About the TDS Rate?

On the transactions, a 2% TDS is obligated where the taxable value surpasses Rs 2,50,000. The breakdown of the rate is stated as:

Forms for Registration and GST Return Filing

Chapters of the Customs Tariff Act, 1975

Effects of Non-Compliance with TDS Provisions Under GST

Furthermore Points

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