Important Keywords: Notification No. 25/2024 – Central Tax: Seeks to amend Notification No. 50/2018 – Central Tax dated 13.09.2018, Section 51 CGST Act 2017, Section 1(3) CGST Act 2017, NOTIFICATION No. 25/2024-Central Tax,
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[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUBSECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 9th October, 2024.
Notification No. 25/2024 – Central Tax: Seeks to amend Notification No. 50/2018 – Central Tax dated 13.09.2018
G.S.R (E).— In exercise of the powers conferred by sub-section (3) of section 1 read with section 51 of the Central Goods and Services Tax Act, 2017 (12 of 2017), hereafter in this notification referred to as the said Act, the Central Government, on the recommendations of the Council, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance, Department of Revenue No. 50/2018- Central Tax, published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number G.S.R 868 (E), dated 13th September, 2018, namely:–
In the said notification,
- after clause (c) and before the first proviso, the following clause shall be inserted,-
“(d) any registered person receiving supplies of metal scrap falling under Chapters 72 to 81 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), from other registered person”;
- for the third proviso, the following proviso shall be substituted, namely-
“Provided also that nothing in this notification shall apply to the supply of goods or services or both, which takes place between one person to another person specified under clauses (a), (b),
- and (d) of sub-section (1) of Section 51 of the said Act, except the person referred to in clause
- of this notification.”
2. This notification shall come into force with effect from the 10th day of October, 2024.
[F No. CBIC-190354/149/2024-TO(TRU-II)]
(Amreeta Titus)
Deputy Secretary
Note:- The principal notification no. 50/2018- Central Tax, was published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number G.S.R 868 (E), dated 13th September, 2018 and last amended vide notification no. 73/2018-Central Tax, number G.S.R 1250(E), dated 31st December, 2018.
Frequently Asked Questions (FAQs)
Q1: What is Notification No. 25/2024 – Central Tax about?
Answer: Notification No. 25/2024 – Central Tax, issued by the Ministry of Finance (CBIC) on October 9, 2024, amends Notification No. 50/2018-Central Tax, which was originally issued on September 13, 2018.
This amendment brings registered buyers of metal scrap (Chapters 72 to 81 of the Customs Tariff Act, 1975) under the TDS (Tax Deducted at Source) provisions of Section 51 of the CGST Act, 2017.
This means that registered buyers of metal scrap must now deduct and deposit TDS on payments made to suppliers of such scrap.
Need help with GST TDS compliance? Get expert guidance at Finodha GST Compliance.
Q2: What does this amendment change in GST law?
Answer: The key changes introduced in Notification No. 25/2024 – Central Tax are:
✅ Registered buyers of metal scrap (falling under Chapters 72 to 81 of the Customs Tariff Act, 1975) must deduct TDS at the time of payment to suppliers.
✅ TDS exemption for intra-government and notified entities remains, except for metal scrap buyers.
✅ Revised third proviso ensures that TDS under Section 51 is now mandatory for registered buyers of metal scrap, even if the transaction is between registered persons.
For expert TDS compliance solutions, visit: Finodha GST Compliance.
Q3: Who is affected by Notification No. 25/2024 – Central Tax?
Answer: The amendment affects all registered buyers of metal scrap, including:
Manufacturers purchasing metal scrap as raw material.
Metal scrap dealers and traders.
Recyclers and importers/exporters dealing in scrap under Chapters 72 to 81.
Government and PSU entities procuring scrap.
Such businesses must now deduct TDS on payments made for metal scrap purchases.
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Q4: What are Chapters 72 to 81 of the Customs Tariff Act, 1975?
Answer: These chapters cover a wide range of metals and metal scrap:
Chapter 72 – Iron and steel scrap
Chapter 73 – Articles of iron and steel
Chapter 74 – Copper and copper alloys
Chapter 75 – Nickel and nickel products
Chapter 76 – Aluminum and aluminum products
Chapter 78 – Lead and lead scrap
Chapter 79 – Zinc and zinc scrap
Chapter 80 – Tin and tin scrap
Chapter 81 – Other base metals (e.g., tungsten, titanium, etc.)
For expert assistance on GST compliance for metal scrap traders, visit: Finodha GST Compliance.
Q5: When does Notification No. 25/2024 – Central Tax come into effect?
Answer: The notification takes effect from October 10, 2024. From this date, all registered buyers of metal scrap must comply with the TDS deduction requirement under Section 51 of the CGST Act, 2017.
To avoid penalties and ensure TDS compliance, consult: Finodha GST Experts.
Q6: What is the impact of this change on registered buyers of metal scrap?
Answer: Registered buyers of metal scrap must:
📌 Deduct TDS on payments made to suppliers of metal scrap.
📌 Deposit the deducted TDS with the GST department.
📌 File TDS returns under GST to avoid penalties.
📌 Issue TDS certificates to suppliers, enabling them to claim the deducted amount.
For seamless TDS and GST return filing, visit: Finodha GST Return Filing.
Q7: What happens if a registered buyer does not deduct TDS on metal scrap purchases?
Answer: Non-compliance with TDS deduction may lead to:
❌ Interest and penalties for late deduction or non-deduction.
❌ Disallowance of Input Tax Credit (ITC) on purchases.
❌ GST department scrutiny and compliance notices.
Avoid legal troubles—Ensure proper GST compliance: Finodha GST Compliance.
Q8: How can metal scrap buyers comply with the new TDS rule?
Answer: To comply with Notification No. 25/2024 – Central Tax, follow these steps:
1️⃣ Register for GST and ensure your GSTIN is active.
2️⃣ Deduct TDS while making payments for metal scrap.
3️⃣ Deposit the TDS amount with the GST department within the due date.
4️⃣ File GST TDS returns (GSTR-7) regularly.
5️⃣ Issue TDS certificates to suppliers for ITC claims.
For complete GST & TDS compliance support, visit: Finodha GST Compliance.
Q9: How does this amendment align with previous GST rules?
Answer:
📌 Earlier (before this amendment):
TDS under Section 51 of CGST Act was applicable only to government departments, PSUs, and notified entities.
Transactions between two registered persons were not subject to TDS.
📌 Now (after this amendment):
Registered buyers of metal scrap must deduct TDS, even if the seller is a registered person.
This ensures tax transparency in the metal scrap industry and prevents tax evasion.
For personalized GST compliance advice, reach out to Finodha GST Experts: Click Here.
Q10: Where can I get expert help for GST registration, return filing, and compliance?
Answer: If you need professional assistance for:
✅ GST Registration – Apply Here
✅ GST TDS Compliance – Get Assistance
✅ GST Return Filing – File Returns Now
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Conclusion
Notification No. 25/2024 – Central Tax makes a significant change by bringing registered buyers of metal scrap under TDS deduction rules. This ensures better tax compliance, prevents tax evasion, and increases transparency in metal scrap transactions.
✅ If you deal in metal scrap, ensure you comply with this new TDS rule starting October 10, 2024.
For seamless GST and TDS compliance, trust Finodha.in—Your trusted GST partner! 🎯
Download PDF: Notification No. 25/2024 – Central Tax
Read More: Seeks to amend Notification No 12/2017- Integrated Tax (Rate) dated 28.06.2017.
More Information: https://taxinformation.cbic.gov.in/
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