Section 51 CGST Act 2017 – Tax deduction at source.

By | April 17, 2017
(Last Updated On: September 16, 2017)

Section 51 CGST Act 2017

Section 51 CGST Act 2017 explains Tax deduction at source. and is covered in Chapter X – Payment of Tax

[Note : CGST Act 2017 also known as CENTRAL GOODS AND SERVICES TAX ACT, 2017 assented by the President of India on 12-4-2017 -An Act to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government and the matters connected therewith or incidental thereto. ]

Tax deduction at source.

[ see Note 1,  2 ]

51. (1) 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 [ Note -3 ]; or

(b) local authority [ Note -3 ]; or

(c) Governmental agencies; or

(d) such persons or category of persons as may be notified[ Note -3] by the Government on the recommendations of the Council,

(hereafter in this section referred to as “the deductor”), to deduct tax at the rate of one per cent from the payment made or credited to the supplier (hereafter in this section referred to as “the deductee”) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees:

Provided that no deduction shall be made if the location of the supplier and the place of supply is in a State or Union territory which is different from the State or as the case may be, Union territory of registration of the recipient.

Explanation.—For the purpose of deduction of tax specified above, the value of supply shall be taken as the amount excluding the central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice.

(2) The amount deducted as tax under this section shall be paid to the Government by the deductor within ten days after the end of the month in which such deduction is made, in such manner as may be prescribed.

(3) The deductor shall furnish to the deductee a certificate mentioning therein the contract value, rate of deduction, amount deducted, amount paid to the Government and such other particulars in such manner as may be prescribed.

(4) If any deductor fails to furnish to the deductee the certificate, after deducting the tax at source, within five days of crediting the amount so deducted to the Government, the deductor shall pay, by way of a late fee, a sum of one hundred rupees per day from the day after the expiry of such five day period until the failure is rectified, subject to a maximum amount of five thousand rupees.

(5) The deductee shall claim credit, in his electronic cash ledger, of the tax deducted and reflected in the return of the deductor furnished under subsection (3) of section 39, in such manner as may be prescribed.

(6) If any deductor fails to pay to the Government the amount deducted as tax under sub-section (1), he shall pay interest in accordance with the provisions of sub-section (1) of section 50 , in addition to the amount of tax deducted.

(7) The determination of the amount in default under this section shall be made in the manner specified in section 73 or section74.

(8) The refund to the deductor or the deductee arising on account of excess or erroneous deduction shall be dealt with in accordance with the provisions of section 54:

Provided that no refund to the deductor shall be granted, if the amount deducted has been credited to the electronic cash ledger of the deductee.


Note

  1. Exempting supplies to a TDS deductor by a supplier, who is not registered,under section 11 (1) of CGST Act 2017 vide Notification No.9/2017-Central Tax (Rate) Dated  28th June, 2017
  2. Exempting supplies to a TDS deductor by a supplier, who is not registered, under section 8 (1) of UTGST Act 2017 vide Notification No. 9/2017-Union Territory Tax (Rate) Dated the 28th June, 2017
  3. Notifying section 51 of the CGST Act, 2017 for TDS Vide Notification No 33/2017 Central Tax dated 15th September, 2017

If you have any comments about Section 51 of CGST Act 2017 , share below your thoughts:

Related Book on GST Act

Section 51 CGST Act 2017

Direct Taxes Ready ReckonerService Tax Ready ReckonerCompany Law Ready Reckonertax deduction at source
New Books Released on Tax , GST and law

20 thoughts on “Section 51 CGST Act 2017 – Tax deduction at source.

  1. Pingback: CGST Act 2017 - Chapter Wise and Section Wise - Tax Heal

  2. Pingback: Draft GST Payment of Tax Rules - Released on 31.03.2017 by CBEC - Tax Heal

  3. Pingback: Draft GST Registration Rules Released on 31.03.2017 - Tax Heal

  4. Pingback: Section 44 CGST Act 2017 - Annual return - Tax Heal

  5. Pingback: Section 39 CGST Act 2017 - Furnishing of returns. - Tax Heal

  6. Pingback: Section 122 CGST Act 2017 Penalty for certain offences. - Tax Heal

  7. Pingback: Section 24 CGST Act 2017 Compulsory registration in certain cases. - Tax Heal

  8. Pingback: Final GST Payment of Tax Rules approved by GST Council - Download

  9. Pingback: Final GST Registration Rules Approved by GST Council 18.05.2017 - Tax Heal

  10. Pingback: Section 37 of Model GST Law :Analysis - Tax Heal

  11. Pingback: GST REG 7 - Download -Registration as Tax Deductor at source or Tax Collector at source - Tax Heal

  12. Pingback: Final GST Return Rules approved by GST Council on 03.06.2017 - Download - Print - Tax Heal

  13. Pingback: Central Goods and Services Tax Rules 2017 - CGST Rules 2017 - Notification No. 3 /2017 - Central Tax - Tax Heal

  14. Pingback: TDS Mechanism under GST - Analysis - Tax Heal

  15. Pingback: GST - TDS / TCS Provisions postponed under CGST / SGST Act 2017 - Tax Heal

  16. Pingback: Rule 8 CGST Rules 2017 : Application for registration - Tax Heal

  17. Pingback: Rule 61 CGST Rules 2017 : Form and manner of submission of monthly return - Tax Heal

  18. Pingback: Section 37 CGST Act 2017 - Furnishing details of outward supplies. - Tax Heal

  19. Pingback: Due Date for GST Payment - Tax Heal

  20. Pingback: ICAI Suggestions on GST Act to Govt : July 2017 - Tax Heal

Leave a Reply

Your email address will not be published. Required fields are marked *