Case Law : M/s Jaipur Zila Dugdh Utpadak Sahakari Sagh (Applicant) Ltd. Vs AAR
Facts of the case: The applicant is a registered co-operative society registered under Rajasthan co-operative societies Act, 1965.
The applicant is the manufacturer of Milk, Ghee, Chhach, Butter, Dahi, Lassi, Panner, Ice-cream and related milk products.
Sale of milk is an exempted sales as per the provisions of GST Law.
The application for AAR was made as per the specified questions of section 97 of CGST Act, 2017 i.e. “Applicability of a notification issued under the provisions of this act, classification of good or services or both”
Issue arised : Whether the cooperative society is liable to deduct TDS under GST from payment made to it by vendors for providing taxable goods and services for making it supplies?
Relevant facts to be considered:
- The compliances of TDS are governed under section 51 of CGST Act, 2017, where the specified persons are required to deduct TDS on the payment of GST.
- However, the applicant i.e. Cooperative society registered under the Rajasthan State Co-operative Society Act, 2001 is neither established under Societies Registration Act, 1860 not it is established / State Government / Local Authority) i.e. the specified persons.
The applicant thus does not fall under any category of Section 51 of the GST Act, 2017.
Conclusion: The provisions of TDS are not applicable in accordance with Section 51 of the GST Act, 2017.