No TDS to be deducted on supply of goods or services to a PSU by another PSU

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 The Central Board of Indirect Taxes and Customs vide Notification No. 61/2018-Central Tax dated November 05, 2018 has inserted the following proviso in Notification No. 50/2018-Central Tax dated September 13, 2018 (notifying October 1, 2018 as the date for applicability of TDS provisions under Section 51 of the CGST Act, 2017 ), to exempt supply from PSU to PSU from applicability of provisions relating to TDS:

“Provided further that nothing in this notification shall apply to the supply of goods or services or both from a public sector undertaking to another public sector undertaking, whether or not a distinct person, with effect from the October 01, 2018.”

Complete Notification can be accessed at:;jsessionid=0CABD53D42EC927517E5771BA2937A00