The central government has notified that implementation of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) under the Goods and Services Tax (GST) will come into effect from October 1.
As per the notification, entities are directed to levy TDS at one percent on payments to goods or services suppliers in excess of Rs 2.5 lakh. States are also directed to collect one percent TDS in adherence to state laws.
E-commerce companies such as Flipkart, Myntra, Jabong, Amazon, Snapdeal and many others are now mandated to collect up to 1 percent TCS while making any payment to suppliers under the Goods and Services Tax (GST).
The GST was rolled out from July 1, 2017 and it subsumed over a dozen local taxes. However, in a bid to simplify the process for businesses in the initial months of its implementation, TDS and TCS provisions under GST laws was kept on hold till June 30. It was later deferred till September 30, 2018.
