Notification No. 61/2018 – Central Tax Explained

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Notification No. 61/2018 – Central Tax: Seeks to exempt supply from PSU to PSU from applicability of provisions relating to TDS.

[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, 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 amendments in the notification of the Government of India in the Ministry of Finance, Department of Revenue No. 50/2018-Central Tax, dated the 13^th September, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i) vide number G.S.R 868(E), dated the 13^th September, 2018, namely:–

In the said notification, after the proviso, the following proviso shall be inserted, namely:-

“Provided further that nothing in this notification shall apply to the supply of goods or services or both from a public sector undertaking to another public sector undertaking, whether or not a distinct person, with effect from the 1^st day of October, 2018.” .

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

Note:- The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R 868 (E), dated the 13^th September, 2018 and subsequently amended vide notification No. 57/2018-Central Tax, dated the 23^rd October, 2018, published vide number G.S.R 1057(E), dated the 23^rd October, 2018.

📚 Frequently Asked Questions (FAQs): Notification No. 61/2018 – Central Tax

Q1: What is Notification No. 61/2018 – Central Tax?

Answer:
It is a GST notification that exempts supplies from one PSU to another PSU from TDS provisions under GST.

Q2: Under which section was this notification issued?

Answer:
It was issued under Section 51 of the CGST Act, 2017, which deals with TDS under GST. 61

Q3: What was the main objective of this notification?

Answer:
The objective was to remove TDS compliance for transactions between PSUs, reducing unnecessary procedural burden.

Q4: From which date did this exemption become effective?

Answer:
The exemption became effective from 1 October 2018. 61

Q5: Does this apply only to goods or also services?

Answer:
It applies to both goods and services supplied from one PSU to another PSU. 61

Q6: Does the exemption apply if both PSUs are in different states?

Answer:
Yes. The notification applies regardless of location, as long as the supply is from one PSU to another.

Q7: What is meant by “distinct persons” in this notification?

Answer:
Distinct persons refer to separate GST registrations of the same legal entity in different states under Section 25 of the CGST Act.
The notification states the exemption applies even if PSUs are treated as distinct persons. 61

Q8: Was TDS applicable on PSU-to-PSU supplies before this notification?

Answer:
Yes. Under Section 51, PSUs were required to deduct TDS when making payments to suppliers, including other PSUs.

Q9: Does this exemption apply to supplies from PSU to private companies?

Answer:
No. The exemption applies only to PSU-to-PSU supplies.

Q10: Do PSUs still need GST registration?

Answer:
Yes. PSUs must still obtain GST registration if they meet the threshold.
You can register easily through:
https://finodha.in/online-gst-registration/