Concept of TDS under GST in the Metal Scrap Sector



Quick Summary
The Goods and Services Tax (GST) has extended its Tax Deducted at Source (TDS) provisions to the metal scrap sector, effective from October 10, 2024. This change, following a GST Council recommendation, now requires registered persons dealing with metal scrap (classified under specific Customs Tariff Act chapters) to deduct TDS. A TDS rate of 2% applies to transactions exceeding £2,50,000, with specific rates for intra-state and inter-state supplies.

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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1 Year PLAN
1999
(Excl. of GST ₹359)

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2 Years PLAN
3499
(Excl. of GST ₹629)

3 Months PLAN
999
(Excl. of GST ₹179)

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