Applicability of Section 51 of CGST Act or TDS under GST

Applicability of Section 51 of CGST Act or TDS under GST

On 13th September 2018, a notification is issued which is issued to apply the section 51 of the CGST Act. The Notification No. 50/2018-Central tax is the notification which applies the provisions of section 51. Section 51 is for the (Tax Deducted at Source) TDS under GST. The most of the person notified under this section is directly or indirectly related to the government. The Section 51 of the CGST Act mandates the following for such provisions to follow: 

Section 51(1) of CGST Act:

Notwithstanding anything to the contrary contained in this Act, the Government may mandate,––
(a) a department or establishment of the Central Government or State Government; or
(b) local authority; or
(c) Governmental agencies; or
(d) such persons or category of persons as may be notified by the Government on the recommendations of the Council,

The notification also notifies the more person/entities to be covered under this section. As per clause (d) of section 51(1) of the CGST Act. Following are the person/entities:

(a) an authority or a board or any other body, –
(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by any Government,

with fifty-one percent. or more participation by way of equity or control, to carry out any function;

(b) The society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860);

(c) public sector undertakings.