The GSTN has issued an Advisory dated 14.10.2024, relating to new GST provisions for Metal Scrap Transactions. 

The Advisory reads as under:

The government has issued Notification 25/2024-Central Tax, on October 9, 2024.under GST Section 51 of the CGST Act, 2017 mandating compliance by the businesses dealing with Metal Scrap. The GST portal will soon be updated to enable compliance of registration through FORM GST REG-07 by these category of registered persons.

Notification No. 25/2024-Central Tax dated 09.10.2024

This notification introduces amendments related to Tax Deduction at Source (TDS) under Section 51 of the Central Goods and Services Tax (CGST) Act, 2017.

Impact:

• TDS on Metal Scrap Supplies: With the insertion of clause (d), supplies of metal scrap between registered persons will now be subject to TDS under Section 51 of the CGST Act.
• Exclusion of Certain Transactions: The third proviso ensures that TDS provisions will not apply to transactions between specific government bodies or persons mentioned in Section 51(1), except where metal scrap supplies are involved.

The notification will come into force from October 10, 2024.

The Notification No. 25/2024 – Central tax can be accessed at https://taxo.online/wp-content/uploads/2024/10/CT-25-2024.pdf