TDS rates under GST

[Guest]

Sir,

Whether the TDS rates under GST are declared?

[KASTURI SETHI]

How TDS is being linked with GST ?

[Krishnamurthy V]

Sir,

1. As per Section 51 of the CGST Act 2017, the Government may mandate "the deductor" (department or establishment of the Central or State Govt. / Local authority / Government agencies / such person or category of persons as may be notified by the Government on the recommendation of the Council) to deduct tax at the rate of ONE per cent from the payment made or credited to the supplier (the deductee) where the total value of such supply under a contract exceeds two lakhs and fifty thousand rupees.

2. No deduction shall be made in case of inter state supply

3. The amount deducted as tax under this section shall be paid to the Government by the deductor within 10 days after the end of the month in which such deduction is made. Further, the deductor shall furnish to the deductee a certificate mentioning contract value, rate of deduction, amount deducted, amount paid to the Govt.

4. As per sub Section (3) of Section 39, deductor shall furnish the TDS amount in his monthly return and deductee shall claim credit in his electronic cash ledger.

[Ganeshan Kalyani]

Yes the provision of TDS has been carried forward under GST. Thanks.

AI Summary

TDS under GST requires notified deductors to withhold tax from supplier payments above a threshold; inter state supplies excluded. TDS under GST empowers the Government to require specified deductors to withhold tax from supplier payments when contract value exceeds a notified threshold, excluding inter state supplies. Deductors must deposit withheld amounts within the statutory timeline, issue a certificate to the deductee detailing contract value, rate and amount withheld, and reflect the deduction in their monthly return so the deductee can claim credit in the electronic cash ledger.