TaxTMI 
TaxTMI 
How to determine the taxable value in TDS cases in GST. WHETHER the GST would be calculated on gross value charged including TDS of income tax, GST, Royalty etc
Determination of Taxable value under
21 Jun 2024 
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Taxable value determination under GST: TDS generally included for domestic supplies, excluded for overseas recipient liabilities.
Determination of taxable value under GST focuses on whether income-tax TDS is part of the consideration. Only GST components-CGST, SGST/UTGST, IGST and Compensation Cess-are excluded when ascertaining taxable value. For domestic supplies TDS is treated as part of consideration and GST applies on the gross value including TDS. For overseas supplies and where reverse charge applies, TDS under the Income-tax Act is generally not added to value for GST. Administrative guidance confirms TDS should not be deducted on GST if GST is shown separately on the invoice. (AI Summary)
Determination of taxable value under GST focuses on whether income-tax TDS is part of the consideration. Only GST components-CGST, SGST/UTGST, IGST and Compensation Cess-are excluded when ascertaining taxable value. For domestic supplies TDS is treated as part of consideration and GST applies on the gross value including TDS. For overseas supplies and where reverse charge applies, TDS under the Income-tax Act is generally not added to value for GST. Administrative guidance confirms TDS should not be deducted on GST if GST is shown separately on the invoice. (AI Summary)