Tds on transport in gst

This query is : Resolved

ARCHANA (Querist)
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30 January 2019 Sir,

Tds on Transport in Gst is applicable or not , if applicable with effect from what is the procedure to deduct, payment , Return filing and how to rectify if filed returns.

Please clarify these doubts.

Thanking you

CA CS Chirag

CA CS Chirag (Expert)
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30 January 2019 No not applicable.

Regular taxpayers under GST are not required to deduct tax at source while making GST payments. Only the following types of taxpayers are required to comply with GST TDS provisions:

Department or an establishment of the Central Government or State Government;
Local authority;
Governmental Agencies;
Any other persons or category of persons as notified by the Government on the recommendations of the GST Council.

As per the latest Notification dated 13th September 2018, the following entities also need to deduct TDS-

An authority or a board or any other body which has been set up by Parliament or a State Legislature or by a government, with 51% equity ( control) owned by the government.
A society established by the Central or any State Government or a Local Authority and the society is registered under the Societies Registration Act, 1860.
Public sector undertakings.

ARCHANA

ARCHANA (Querist)
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30 January 2019 Sir,
Thank you for your reply, we will get some transport bills only amount they will not mention gst anywhere such type of bills how to pay whether we have to deduct.

Thanking you

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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27 July 2025 Got it! Here's the key point about **TDS on transport bills under GST**:

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### 1. **Is TDS on transport bills under GST applicable?**

* **Generally NO**, for most businesses, TDS under GST is not applicable on transport services.
* Only specific entities like **Government departments, local authorities, PSU, and notified persons** are required to deduct TDS under GST (Section 51 of CGST Act).
* If you are **not one of these specified deductors**, you are **not required to deduct TDS on GST transport bills**.

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### 2. **What if the transport bill doesn't mention GST?**

* If GST is **not separately charged** or not mentioned, check whether the supplier is registered under GST.
* If transport service provider is unregistered (like small transporters under threshold), GST may not be applicable.
* Your payment is for **transport service**, so:

* If the supplier is unregistered and no GST charged, there is **no GST component**.
* No GST TDS applies since TDS under GST applies only when GST is charged on the invoice.

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### 3. **How to pay and deduct TDS?**

* For **normal businesses (non-government, non-PSU)**, no GST TDS deduction is required.
* For government or notified entities:

* Deduct TDS at **2% on the taxable value** (GST exclusive).
* Deposit TDS via Form GST ITC-03.
* File TDS returns as per GST guidelines.

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### 4. **If you've already deducted TDS incorrectly**

* Rectify by filing **amendments or corrections** in the GST TDS returns (using Form GSTR-7).
* Coordinate with the supplier to adjust their input tax credit accordingly.

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### Summary for your case:

* If your company is **not a government entity or notified person**, **you don’t need to deduct TDS on transport bills**, regardless of GST mention.
* If GST is not mentioned on bills, it likely means **no GST applicable**.
* Just pay the bills as per agreed terms; no TDS deduction is needed from your side.

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If you want, I can help you draft a quick checklist or letter to explain this to your accounts team or vendors. Want me to do that?

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