TaxTMI 
TaxTMI 
Is it necessary to deduct TDS under section 51 of the CGST Act when the supplier is unregistered under the said Act and the service recipient is otherwise required to deduct? If so, how will the supplier claim refund?
TDS on supplies by unregistered dealers under CGST Act
15 Dec 2022 
2 Replies 
8670 Views Asked by
TDS on supplies to unregistered suppliers: deduction not required and refund mechanism currently unavailable, creating compliance uncertainty.
TDS under section 51 is not required when the supplier is unregistered and not liable to pay GST; the SOP for deductors lists payment to an unregistered supplier as an exclusion, but the legal provision lacks clarity and there is currently no portal mechanism for the unregistered supplier to claim refund if tax is deducted. (AI Summary)
TDS under section 51 is not required when the supplier is unregistered and not liable to pay GST; the SOP for deductors lists payment to an unregistered supplier as an exclusion, but the legal provision lacks clarity and there is currently no portal mechanism for the unregistered supplier to claim refund if tax is deducted. (AI Summary)