This is in reference to a recent press release by Ministry of Finance on postponement of TDS and TCS provisions under GST. This confirms several news reports published in the last week where officials had confirmed that the provisions would not come into effect July 1, 2018 as was proposed.
The press release confirms that the applicability of TCS stands postponed until September 30, 2018.
You would recall that NASSCOM had advocated on this aspect and had urged the Council to postpone enactment of the TDS and TCS provisions as the Industry is still grappling with the sea of changes that the general compliances GST has brought about. NASSCOM urged that the postponement was also required given that the return mechanism is expected to undergo an overhaul in the upcoming Council meeting.
While this should offer an interim relief, we will continue to engage with Government towards a long term resolution.