Is Government SEZ Authority required to deducts TDS

[CASeetharaman KC]

Is a Government SEZ Authority formed by Act of parliament required to deduct TDS or would it be excluded under the proviso to Section 51 'Provided that no deduction shall be made if the location of the supplier and the place of supply is in a State or Union territory which is different from the State or as the case may be, Union territory of registration of the recipient.'

AI Summary

Debate on SEZ Authority's TDS Obligations Under GST: Interpreting Section 51 of CGST and Section 20 of IGST Acts. A discussion on whether a Government SEZ Authority is required to deduct TDS under GST laws highlights differing interpretations of Section 51 of the CGST Act and Section 20 of the IGST Act. One view suggests that TDS is not required if the supplier and place of supply are in the same state as the recipient's registration. However, supplies to or by SEZs are considered interstate, potentially requiring TDS as IGST. The debate includes considerations of registration requirements, such as using TAN for TDS registration, and how these apply to SEZ authorities. The discussion seeks clarity on these legal nuances.