India: CBIC notifies 2% TDS on metal scrap transactions

According to Notification No. 25/2024-Central Tax, issued on 9 October 2024, businesses engaged in business-to-business (B2B) transactions involving metal scrap are now required to deduct 2% Tax Deducted at Source (TDS) from registered suppliers. This rule is effective from 10 October 2024.

For intra-state transactions, the TDS rate is divided equally between CGST (1%) and SGST (1%), while for inter-state supplies, the full 2% is categorised under IGST. This change expands the scope of TDS under Section 51 of the CGST Act, which previously applied mainly to government bodies and public sector