Whether the applicant being a cooperative society registered under the Rajasthan Co-operative Societies Act, 1965 is liable to deduct TDS under GST from payment made to it by vendors for providing/procuring taxable goods and services for making its suppli

PJ/Case Law/2020-2021/3578

M/s. Jaipur Zila Dugdh Utpadak Sahakari Sang Limited, Jaipur RAJ/AAR/2019-20/12 Dated 20.06.2019
Brief facts:The applicant is a registered co operative society registered under Rajasthan Co operative Societies Act, 1965. The applicant is involved manufacturing of Milk, Ghee, Chhach, Butter, Dahi, Lassi, Paneer, Ice-cream and related milk product. The applicant is procuring raw milk from the rural areas through its primary milk producer’s dairy co-operative societies. Major sale of Milk is exempted according to the GST provisions. However,a part from the exempted sale it is also engaged in providing taxable sale also.
Issue:Whether the applicant being a cooperative society registered under the Rajasthan Co-operative Societies Act, 1965 now consolidated to Rajasthan Co-operative Society Act, 2001 is liable to deduct TDS under GST from payment made to it by vendors for providing/procuring taxable goods and services for making its supplies?
Applicant’s contention:The applicant is registered Rajasthan Co-operative Societies Act, 1965 and is not covered under categories of person specified under sub section (1) of section 51 of CGST Act, 2017 read with Notification No. 50/2018(Central Tax) dated 13.09.2018 for liable to deduct tax at source and it payment made to supplier for procuring of raw material. According to Section 51 read with Notification No. 50/2018(Central Tax), the TDS is applicable on Societies Registration Act, 1860 (21 of 1860). Hence, TDS under GST is not applicable on us.
Respondent’s reasoning and decision:The authority said that while going through Section 51 of the GST Act, 2017 read with Notification No. 50/2018(Central Tax) , they found that the applicant is neither established under Societies Registration Act,1860 (21 of 1860) nor it is established/ constituted by any government.
Therefore, the applicant does not fall under any category of section 51 of CGST Act and hence provisions of TDS are not applicable on the applicant.
Prepared : Vijay

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PJ/Case Law/2020-2021/3578

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