Quick Summary
The provisions for Tax Deducted at Source (TDS) under GST, as outlined in Section 51 of the CGST Act, were initially limited to government entities and public sector units (PSUs). However, following the recommendation of the GST Council during its 54th meeting, the CBIC issued Notification No. 25/20
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FAQ :
The amendments extending GST TDS to the metal scrap sector became effective from October 10, 2024.
A TDS of 2% is mandated on metal scrap transactions where the taxable value exceeds £2,50,000. This is 1% CGST and 1% SGST for intra-state transactions, or 2% IGST for inter-state transactions.
The threshold of £2,50,000 applies per transaction. TDS is required if the total value of supply under a contract exceeds £2.5 lacs, even if individual supplies are less.
The provisions cover registered persons receiving metal scrap classified under Chapters 72 to 81 of the Customs Tariff Act, 1975.
A separate GST registration in Form GST REG-07 is required. TDS deducted must be paid using GSTR-7, and a certificate (GSTR-7A) will be generated.
No, GST TDS is not applicable to the import of metal scrap from foreign countries.
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