TaxTMI 
TaxTMI 
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."
Is Government SEZ Authority required to deducts TDS
22 Oct 2018 
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TDS deduction under GST hinges on supplier/place of supply versus recipient registration state, affecting SEZ transactions and IGST treatment.
Application of GST TDS to a Government SEZ Authority depends on the interplay between the statutory TDS obligation for notified persons and the proviso excluding deduction where the supplier's location and the place of supply are in a different state from the recipient's state of registration. Supplies to or by an SEZ are treated as inter state for IGST, so TDS would generally be as integrated tax unless the proviso's factual condition precludes withholding. Administrative factors such as separate TAN/PAN based registrations affect whether a government SEZ authority is the deductor. (AI Summary)
Application of GST TDS to a Government SEZ Authority depends on the interplay between the statutory TDS obligation for notified persons and the proviso excluding deduction where the supplier's location and the place of supply are in a different state from the recipient's state of registration. Supplies to or by an SEZ are treated as inter state for IGST, so TDS would generally be as integrated tax unless the proviso's factual condition precludes withholding. Administrative factors such as separate TAN/PAN based registrations affect whether a government SEZ authority is the deductor. (AI Summary)