TDS under GST on Import Transactions

[Ashok Swain]

Dear Experts,

Kindly clarify whether TDS under GST has to be deducted from the payments made to foreign supplier on a/c of import of goods. The location of foreign supplier is outside India but the place of supply is within India. But as per Section 51 of CGST Act, no deduction shall be made if the location of the supplier and the place of supply is in a State which is different from the State of registration of the recipient. Also, the foreign supplier will not have any GSTIN and hence there is no scope for him to get the refund through elcetronic cash ledger.

Please contribute your inputs on this.

Ashok

AI Summary

TDS under GST is not applicable on import of goods when tax is paid under reverse charge/IGST.
Imports of goods are subject to IGST paid by the recipient under the reverse charge mechanism; TDS under GST is not to be deducted on payments to foreign suppliers for such imports because TDS provisions target specified deductors and additional withholding would create double taxation, while supplies attracting RCM are treated in valuation rules as exempt for input deduction purposes.