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Tax Deducted at Source (TDS) under GST

Who is required to deduct TDS under GST?

According to section 51 of CGST Act, 2017, the following category of persons are required to deduct TDS on GST:

  • A department or establishment of the Central Government or State Government.
  • Local authority.
  • Governmental agencies.
  • Such persons or category of persons as may be notified by the Government on the recommendations of the Council.

The following persons, as notified by the Central Government, are also required to deduct TDS on GST:

  • An authority or board or any other body with 51% or more participation by way of equity or control

(i) Set up by an Act of Parliament or a State Legislature; or

(ii) Established by any Government.

  • Society established by the Central or any State Government or a Local Authority under the Societies Registration Act, 1860. Public sector undertakings.

When is TDS required to be deducted on GST?

It is mandatory for the abovementioned persons to deduct TDS on GST from payments made to the supplier if the total value of supply of taxable goods and/or services under a contract exceeds Rs 2,50,000 exclusive of tax & cess.

Due date to deposit TDS deducted on GST

The amount of tax deducted should be deposited to the Government account by the deductor by the 10th of the next month. if the deductor fails to deposit the TDS deducted within the prescribed time, interest would be charged on late payment.


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TaxGyata Team

TaxGyata Team