GST on TDS

[Kaustubh Karandikar]

XYZ received services from a foreigner where the invoice value of the foreigner is say 100 $ (INR say Rs. 8000. XYZ separately paid TDS on the same to the Indian govt. say of Rs.1000/-. XYZ is required to pay GST under reverse charge on import of service on Rs.8000/- or Rs.8000/- + Rs.1000/- i.e. on Rs.9000/-?

AI Summary

Debate on GST Calculation: Should TDS Be Included in Invoice Value for Reverse Charge Mechanism? A discussion on a forum addressed whether GST under reverse charge mechanism should be calculated on the invoice value alone or include the TDS amount paid to the Indian government. One participant suggested GST should be on the total, including TDS, as it forms part of the consideration. Another participant referenced tribunal observations indicating that TDS, being a tax obligation, should not be included in the value of taxable services. The discussion highlighted differing views on whether TDS should be considered part of the consideration for GST purposes, with references to various tribunal cases and GST provisions.