The goods and services tax (GST) registrations for entities mandated to collect and deduct tax at source will start from 18 September. However, the date from which tax deducted at source (TDS) or tax collected at source (TCS) is to be done will be notified later.
The GST Council, at its 21st meeting in Hyderabad, decided to open registration of persons liable to deduct TDS and TCS from 18 September. As per the Central GST (CGST) Act, the notified entities are required to collect TDS at 1% on payments to suppliers of goods or services in excess of Rs2.5 lakh.
Also, e-commerce companies are required to collect 1% TCS while making payment to suppliers under GST, which kicked in on 1 July. Following industry demands, the government in June had decided to defer the TDS and TCS provision for the smooth rollout of GST.