Corrigendum to Circular No. 76/50/2018-GST dated 31st December, 2018 issued vide F. No. CBEC-20/16/04/2018-GST- Reg. which finally clarified that there is no GST on TCS.
1. Section 15(2) of CGST Act specifies that the value of supply shall include “any taxes, duties cesses, fees and charges levied under any law for the time being in force other than this Act, the SGST Act, the UTGST Act and the GST (Compensation to States) Act, if charged separately by the supplier.”
2. For the purpose of determination of value of supply under GST, Tax collected at source (TCS) under the provisions of the Income Tax Act, 1961 would not be includible as it is an interim levy not having the character of tax.