TMI Blog2019 (10) TMI 569X X X X Extracts X X X X X X X X Extracts X X X X ..... ate Government of any State or the Central Government or any local authority. Hence it is not a department or an establishment of Central Government/State Government/local authority. Therefore applicant is not covered under clause (a) (b) of Section 51(1) of the CGST Act, 2017. The applicant is a co-operative society registered under the Karnataka Co-operative Societies Act, 1959 and the applicant states that they are not registered under Societies Act, 1860. Hence the applicant is not a notified person under clause (d) of section 51(1). Clause (c) of the Section 51(1) of the CGST Act 2017 - whether the applicant is covered under Governmental Agency or not? - HELD THAT:- Governmental agency has not been defined under the CGST Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led an application for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules 2017, and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules 2017, in FORM GST ARA-01 discharging the fee of ₹ 5,000/- each under the CGST Act and the KGST Act. 2. The applicant is a registered society under Co-operative Society Act 1959 in Karnataka and is engaged in processing of milk and milk products wherein its district co-operative unions are shareholders of the organizations, which are registered under the Goods and Services Act, 2017. The applicant has sought advance ruling in respect of the following question: Whether KMF is liable to deduct GST TDS under section 51 of CGST Act on the paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ees. d. The applicant has drawn the attention to the Notification No.33/2017 - Central Tax dated 15-09-2017 and Notification No. 50/2018-Central Tax dated 13-09-2018 and presumes that they may be a government entity. e. Further the applicant has also stated that they are not established by the central government or the state government or a local authority under the Societies Registration Act, 1860. PERSONAL HEARING: / PROCEEDINGS HELD ON 17.11.2018. 4. Sri Lokesh Reddy, Chartered Accountant and duly authorized representative of the applicant appeared for personal hearing proceedings held on 17.11.2018 reiterated the facts narrated in their application. The applicant wanted to know whether th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duct TDS under GST and to follow the relevant procedures. Section 51 of the CGST Act 2017, read with Notification 50/2018-Central Tax dated 13.09.2018, mandates certain persons to undertake TDS deduction. We draw attention to Sub-section (1) of Section 51 of the CGST Act 2017, which reads as under: 51. Tax deduction at source. - (1) Notwithstanding anything to the contrary contained in this Act, the Government may mandate, - (a) A department or establishment of the Central Government or State Government; or (b) local authority; or (c) Governmental agencies; or (d) such persons or category of persons as may be notified by the Government on the recommendations of the Council, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation No.57/2018- Central Tax dated 23.10.2018 wherein a proviso is inserted and the same reads as under: Provided that with respect to persons specified under clause (a) of sub-section (1) of section 51 of the Act, nothing in this notification shall apply to the authorities under the Ministry of Defence, other than the authorities specified in Annexure-A and their offices, with effect from the 1st day of October, 2018. 5.7 Later the Notification No. 50 /2018 - Central Tax dated 13-09-2018 was amended by inserting another proviso vide Notification No.61/2018 -Central Tax dated 05-11-2018 and the second proviso reads as under: Provided further that nothing in this notification shall apply to the supply of go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) of the CGST Act, 2017. 5.10 We proceed to examine whether the applicant is covered under clause (d) of Section 51(1) of the Act, as enumerated already at para 5.5 supra. a. The applicant has neither been set up by an Act of Parliament nor a State Legislature. b. The Applicant has not been established by any Government with fifty-one percent or more participation by way of equity or control, to carry out any function. c. The applicant has not been established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860); d. The Applicant is not a Public sector undertaking The applicant is a co-operative society r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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