TCS,TDS deffered under GST

New Delhi, June 27: A relief was provided yesterday. The central government has announced that it would differ implementation of certain provisions of the Goods and Services Tax which would be effective from July 1. The government has issued a notification.The details of the notification are

* The Tax deduction at source and Tax collection at source provisions have been deferred.

* Vendors who supply goods and services to E-commerce platforms will not be required to be registered under GST.

Experts say that the above provisions would benefit E-commerce companies.The vendors whose turnover is below Rs 20 lakh would be benefited. Under the new tax regime E-commerce companies must collect 1 % TDS for payments to suppliers of goods or services in excess of Rs 2.5 lakh.

However many other companies have also demanded similar relaxation because the government has clearly rejected the demands. Finally, many small vendors have expressed are satisfied because the government has accepted their demand that more time is needed for them to comply with GST.