As too many things are happening on GST at the same time, everyone is finding it difficult to absorb the heaps of information being cast upon them at regular intervals. To add to the confusion, the CBEC has commenced the activity of issuing Notifications. One can expect a flood of Notifications soon.
One of the biggest disappointments is that the CBEC has not thought of simplyfing the Notifications. Every Notification has the following :
- In exercise of the powers conferred by…….
- on being satisfied that it is necessary in the public interest so to do,
- intra-State supplies of goods or services
Notification No.9/2017-Central Tax (Rate)
In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts intra-State supplies of goods or services or both received by a deductor under section 51 of the said Act, from any supplier, who is not registered, from the whole of the central tax leviable thereon under sub-section (4) of section 9 of the said Act, subject to the condition that the deductor is not liable to be registered otherwise than under sub-clause (vi) of section 24 of the said Act.
Main Section Impacted
Section 51 of the CGST Act states that the Government may mandate,–
(a ) a department or establishment of the Central Government or State
(b ) local authority;
(c ) Governmental agencies;
(d ) such persons or category of persons as may be notified by the Government
on the recommendations of the Council
to deduct tax at the rate of 1% on some supplies.
This Notification states that tax deduction is not required for all intra-state supplies provided the deductor is liable to be registered only because of the TDS Clause. No limit has been prescribed.
One can expect many more such Notifications in the years to come. Notifying times lie ahead!