Notification No. 50/2018 – Central Tax Explained

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Notification No. 50/2018 – Central Tax: Seeks to bring section 51 of the CGST Act (provisions related to TDS) into force w. e. f 01.10.2018.

GST: [To be published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i)]

G.S.R. …..(E).— In exercise of the powers conferred by sub-section (3) of section 1 of the Central Goods and Services Tax Act, 2017 (12 of 2017) and in supersession of the notification of the Government of India in the Ministry of Finance, Department of Revenue No. 33/2017-Central Tax, dated the 15^th September, 2017, published in the Gazette of India,

Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1163 (E), dated the 15^th September, 2017, except as respects things done or omitted to be done before such supersession, the Central Government hereby appoints the 1^st day of October, 2018, as the date on which the provisions of section 51 of the said Act shall come into force with respect to persons specified under clauses (a), (b) and (c) of sub-section (1) of section 51 of the said Act and the persons specified below under clause (d) of sub-section (1) of section 51 of the said Act, namely:-

an authority or a board or any other body, -

set up by an Act of Parliament or a State Legislature; or

established by any Government,
with fifty-one per cent. or more participation by way of equity or control, to carry out any function;

Society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860);

public sector undertakings.

(Gunjan Kumar Verma)
Under Secretary to the
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 50/2018 – Central Tax

Q1: What is Notification No. 50/2018 – Central Tax?

Answer:
It is a GST notification that brought Section 51 (TDS provisions) into force from 1 October 2018 for specified government entities. 50

Q2: Which section was activated by this notification?

Answer:
It activated Section 51 of the CGST Act, which deals with GST TDS. 50

Q3: From which date did GST TDS become effective?

Answer:
GST TDS became effective from 1 October 2018. 50

Q4: Who must deduct TDS under this notification?

Answer:
Government departments
Authorities with 51% government control
Government societies
Public sector undertakings 50

Q5: What is the threshold for GST TDS deduction?

Answer:
TDS applies when:
Payment exceeds ₹2.5 lakh.

Q6: What is the GST TDS rate?

Answer:
1% CGST
1% SGST
Total: 2%

Q7: Does this notification apply to private companies?

Answer:
No.
It applies only to notified government entities and PSUs.

Q8: What return is filed for GST TDS?

Answer:
Deductors must file:
GSTR-7 monthly.

Q9: How does the supplier get TDS credit?

Answer:
The TDS amount:
Appears in the supplier’s electronic cash ledger
Can be used to pay GST liability.

Q10: What happens if TDS is not deducted?

Answer:
The department may:
Demand the TDS amount
Charge interest
Impose penalties

Q11: Does TDS apply to exempt supplies?

Answer:
No.
TDS applies only to taxable supplies.

Q12: Is TDS applicable on advance payments?

Answer:
Yes, if:
The payment exceeds ₹2.5 lakh
It is for taxable supply.

Q13: Can TDS be adjusted by the supplier?

Answer:
Yes.
It can be used to:
Pay GST liability
Offset tax dues

Q14: How is this notification related to Notification 57/2018?

Answer:
Notification 50/2018 activated TDS provisions.
Notification 57/2018 later exempted certain MoD authorities from TDS.

Q15: Who should take professional help for GST TDS?

Answer:
You should consult an expert if:
You supply to government entities
You receive TDS deductions
You face reconciliation issues
Get help with Finodha GST Compliance:
https://finodha.in/gst-compliance/

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