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CA Final · Indirect Tax Laws · Miscellaneous Provisions (GST)

Iyer Metals sold goods and issued the invoice before the appointed day, and VAT tax deduction at source applied to that sale under State law. The buyer, a government department, makes payment on or after the appointed day. Under Section 142(13), what is the position on TDS under section 51 of the CGST Act?

No deduction of tax at source under section 51 is to be made. Under Section 142(13), where the sale attracted VAT TDS under State law and the invoice was issued before the appointed day, payment on or after that day does not trigger GST TDS.

  1. ANo deduction of tax at source under section 51 is to be made by the deductorCorrect
  2. BTDS under section 51 must be deducted on the payment
  3. CTDS under section 51 applies only on the part paid after thirty days
  4. DTDS under section 51 applies only if the supplier is unregistered

Explanation

Section 142(13) states that where a supplier made a sale on which VAT TDS was required under State law and issued the invoice before the appointed day, no TDS under section 51 is deducted when payment is made on or after the appointed day. Both conditions are met here.

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