Notification No. 33/2017 – Central Tax Explained

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Notification No. 33/2017 – Central Tax: Notifying section 51 of the CGST Act, 2017 for TDS.

GST: [To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (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), the Central Government hereby appoints the 18^th day of September, 2017 as the date on which the provisions of sub-section (1) of section 51 of the said Act shall come into force with respect to persons specified under clauses (a) and (b) 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 percent 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:
Provided that the said persons shall be liable to deduct tax from the payment made or credited to the supplier of taxable goods or services or both with effect from a date to be notified subsequently, on the recommendations of the Council, by the Central Government.

(Dr. Sree Parvathy S.L.)
Under Secretary to the
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 33/2017 – Central Tax

Q1: What is Notification 33/2017 in GST?

It activates Section 51 for GST TDS.
This means certain entities are required to deduct tax while making payments under GST.

Q2: What is GST TDS?

Tax deducted at source under GST.
It is deducted by specified entities when making payments to suppliers.

Q3: Who needs to deduct GST TDS?

Government bodies and specified authorities.
Private businesses are generally not required to deduct GST TDS.

Q4: When did GST TDS start?

Section activated in Sept 2017.
But actual deduction started later via separate notification.

Q5: What is the GST TDS rate?

2% (1% CGST + 1% SGST).
Applicable on contract value above threshold.

Q6: What is the threshold for GST TDS?

₹2.5 lakh (excluding tax).
Below this, TDS is not required.

Q7: Is GST TDS same as income tax TDS?

No, both are different.
GST TDS is for indirect tax compliance.

Q8: Can supplier claim GST TDS?

Yes, as credit in GST ledger.
It reduces tax liability.

Q9: What happens if TDS is not deducted?

Penalties may apply.
Also leads to compliance issues.

Q10: Is GST TDS mandatory?

Yes, for specified entities.
It is not optional.

Q11: How is GST TDS reported?

Through GST returns and TDS certificates.
Proper reporting is required.

Q12: Does TDS affect cash flow?

Yes, slightly.
Supplier receives reduced payment.

Q13: Is registration required for TDS deductors?

Yes, separate GST registration required.
Even if not otherwise liable.

Q14: Should I take professional help?

If dealing with government contracts, yes.
Many businesses prefer structured support:
https://finodha.in/online-gst-registration/

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