As per Section 51 of THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 Government may mandate the specified category of agencies or persons (as the deductor) who shall be liable to deduct tax @1% on payment made to contractors.
As per Section 1(3) of the Act, Government has power to appoint different dates for different provisions.
Counter provisions (may be termed as replica) to the above provisions appear in the respective state GST acts.
I failed to find any provision which bestows the government to bring the provisions of the act with retrospect effect. It is difficult to deduct the TDS under the provisions of section 51 where the payment has been made before the provisions came into force.
As per my understanding, no government (be it central or state) is empowered to bring the different provisions of the Central GST Act or State GST Act with retrospective effect in terms of Sub-section (3) of section 1
Central Government has issued notification no. 33/2017 – Central Tax dated 15-9-2017, to bring the provisions of Section 51 (TDS) w.e.f. 18-9-2017. State Government were also expected to work with the same scale and speed. But, it appears that 8 out of (23) states could issue the notification on or before 18-9-2017. 15 states leg much behind. [we could not get the details from remining states]. Related notifications have been issued in many states with retrospective effect. In the list given below, you may find the latest notification by the State ofUttarakhand which was issued as on 10-11-2017.
We tried to compile the notifications issued by the various governments with this subject and able to get notifications from 23 states. Out of 23 states, only 8 State Governments have issued notification as on 18-9-2017 or before.
If the notifications issued by the State Governments and Central Governments continue to be issued in same scale and speed, i.e. absence of synchronization, both the Government as well as the taxpayers will be looser. Courts will be flooded with the undesired cases and the consultants and legal professional will get more opportunity in the process.
Let us pray that GST Council and the Government may be able to find some solution to overcome the problem.
In this background, see the time line:
|
S.No.
|
Center/ State |
Notifications issued u/s 1(3) read with Section 51(1) of the respective acts. [State Acts]
|
Date of the notification
|
Effective Date
|
Effect
|
|
|
|
By the Center
|
|
|
|
|
1.
|
|
33/2017 – Central Tax
|
15-09-2017
|
18-9-2017
|
|
|
|
|
By the States
|
|
|
|
|
1.
|
ANDHRA PRADESH
|
G.O.MS. No. 458
|
16-10-2017
|
18-9-2017
|
Retrospective
|
|
2.
|
Bihar
|
S.O. 181.
|
21-09-2017
|
18-9-2017
|
Retrospective
|
|
3.
|
Chhattisgarh
|
33/2017-State Tax
|
15-09-2017
|
18-9-2017
|
|
|
4.
|
Delhi
|
33/2017 - STATE TAX
|
08-11-2017
|
18-9-2017
|
Retrospective
|
|
5.
|
GOA
|
38/1/2017-Fin(R&C)(16)/2407
|
21-09-2017
|
18-9-2017
|
Retrospective
|
|
6.
|
Gujarat
|
33/2017-State Tax
|
15-09-2017
|
18-9-2017
|
|
|
7.
|
HARYANA
|
No: 84/ST-2.
|
22-09-2017
|
18-9-2017
|
Retrospective
|
|
8.
|
Himachal Pradesh
|
33/2017-State Tax
|
09-10-2017
|
18-9-2017
|
Retrospective
|
|
9.
|
Jharkhand
|
S.O. No. 90
|
04-10-2017
|
18-9-2017
|
Retrospective
|
|
10.
|
Karnataka
|
No. FD 47 CSL 2017 - 07/2017
|
15-09-2017
|
18-9-2017
|
|
|
11.
|
Madhya Pradesh
|
No. FA-3-63/2017-1-V-(104)
|
18-09-2017
|
18-9-2017
|
|
|
12.
|
Maharashtra
|
33/2017-State Tax
|
21-09-2017
|
18-9-2017
|
Retrospective
|
|
13.
|
Meghalaya
|
No. ERTS(T) 65/2017/187 (duplicate)
(No. ERTS(T) 65/2017/Pt/026)
|
09-11-2017
01-11-2017
|
18-9-2017
|
Retrospective
|
|
14.
|
Nagaland
|
No. FIN/REV-3/GST/1/08 (Pt-1)/473
|
27-09-2017
|
18-9-2017
|
Retrospective
|
|
15.
|
Orissa
|
No. S.R.O. No. 410/2017
|
16-09-2017
|
18-9-2017
|
|
|
16.
|
Puducherry
|
No. G.O.Ms. No. 35/CT/2017-18
|
20-09-2017
|
18-9-2017
|
Retrospective
|
|
17.
|
Rajasthan
|
No. F.No.12(46)FD/Tax/2017-Pt-II-88
|
15-09-2017
|
18-9-2017
|
|
|
18.
|
TAMILNADU
|
No. G.O. Ms. No. 107 - II(2)/CTR/783(c-3)/2017
|
15-09-2017
|
18-9-2017
|
|
|
19.
|
Telangana
|
No. G.O. Ms. No. 238
|
26-10-2017
|
18-9-2017
|
Retrospective
|
|
20.
|
Tripura
|
No. F.1-11(91)-TAX/GST/2017(Part-VI)
|
22-09-2017
|
18-9-2017
|
Retrospective
|
|
21.
|
Uttar Pradesh
|
No. KA.NI.-2-1415/XI-9(15)/17
|
27-09-2017
|
18-9-2017
|
Retrospective
|
|
22.
|
Uttarakhand
|
No. 919/2017/9(120)/XXVII(8)/2017
|
10-11-2017
|
18-9-2017
|
Retrospective
|
|
23.
|
West Bengal
|
No. 1665-F.T.
|
18-09-2017
|
18-9-2017
|
|
|
