Case Law Details
In re Karnataka co-Coperative Milk Producers Federation Limited. (GST AAR Karnataka)
Whether Karnataka co-Coperative Milk Producers Federation Limited is liable to deduct GST TDS under section 51 of CGST Act on the payments made to suppliers?
The issue before us to decide is whether the applicant falls under any of the categories of the persons mandated to undertake TDS deduction, under Section 51(1) of the CGST Act 2017, on consideration of aforesaid relevant amendments.
The applicant entity was formed and registered under Co-operative Society Act 1959, where the District Co-operative Milk Unions are shareholders of the applicant organisation. Further applicant is a taxable person under the GST Acts and the entire shareholding is with the district milk unions and not with the State 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 cover under clauses (a) 86 (b) of Section 51(1) of the CGST Act 201.7.
The applicant is not liable to deduct tax at source as per provisions of section 51 of CGST ACT towards payments made to suppliers of taxable goods or services or both, as they are not covered under any of the clauses of Section 51(1) of the CGST / KGST Act 2017.
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