Tds under gst
This query is : Resolved
10 October 2017
can anyone explain TDS provisions in case of PSU under GST with example in following case.....
I am confused that we have to deduct TDS under GST even after deducting as per IT provisions?
If yes then that part can be claimed by supplier while filing ITR or filing GSTR?
and it is applicable from 18th Sept or later?
10 October 2017
or it is postponed till march'18, if yes then from which date is it applicable--1st Oct or else and what are the provisions before the notification of postpone? �
10 October 2017
or it is postponed till march'18, if yes then from which date is it applicable--1st Oct or else and what are the provisions before the notification of postpone? �
02 August 2025
Got it! Here’s a clear explanation about **TDS under GST for PSUs (Public Sector Undertakings)** and related points:
---
### 1. **Applicability of GST TDS for PSUs:**
* As per **Section 51 of the CGST Act**, certain government bodies, including PSUs, are required to deduct **TDS @ 1%** on payments made to suppliers for **taxable goods or services**.
* This is **separate from Income Tax TDS**; both may apply independently.
---
### 2. **Effective Date & Postponement:**
* Originally, GST TDS was to be effective from **1st October 2017**.
* However, the government **postponed** the implementation and the effective date was moved to **1st April 2018**.
* Before 1st April 2018, no GST TDS deduction was required.
---
### 3. **TDS Deducted under GST vs. Income Tax:**
* **GST TDS** deducted by PSU is on the **GST component** of the invoice.
* The deductee (supplier) can **claim this GST TDS amount as input tax credit (ITC)** while filing their **GST returns (GSTR-3B / GSTR-2A)**.
* **Income Tax TDS** deducted separately is for **income tax purposes** and has no bearing on GST ITC.
* So, **both TDS can co-exist**, and each is claimed/refunded separately in respective filings.
---
### 4. **Before Notification of Postponement:**
* Before postponement, PSUs were expected to deduct GST TDS from October 2017 on payments exceeding Rs 2.5 lakh.
* Since postponed, no GST TDS deduction was mandatory before 1st April 2018.
---
### 5. **Summary:**
| Point | Details |
| ------------------------------- | ---------------------------------------- |
| Applicable Entities | PSUs, Govt bodies, notified persons |
| Rate | 1% of taxable value |
| Effective Date (postponed) | From 1st April 2018 |
| Deduction on | Taxable supply payments (goods/services) |
| Claim by Supplier | As Input Tax Credit in GST returns |
| Coexistence with Income Tax TDS | Yes, independent and separate |
---
If you want, I can help you draft a sample TDS deduction and reporting process for your PSU client or prepare FAQs to clarify common doubts. Want me to?
---
### 1. **Applicability of GST TDS for PSUs:**
* As per **Section 51 of the CGST Act**, certain government bodies, including PSUs, are required to deduct **TDS @ 1%** on payments made to suppliers for **taxable goods or services**.
* This is **separate from Income Tax TDS**; both may apply independently.
---
### 2. **Effective Date & Postponement:**
* Originally, GST TDS was to be effective from **1st October 2017**.
* However, the government **postponed** the implementation and the effective date was moved to **1st April 2018**.
* Before 1st April 2018, no GST TDS deduction was required.
---
### 3. **TDS Deducted under GST vs. Income Tax:**
* **GST TDS** deducted by PSU is on the **GST component** of the invoice.
* The deductee (supplier) can **claim this GST TDS amount as input tax credit (ITC)** while filing their **GST returns (GSTR-3B / GSTR-2A)**.
* **Income Tax TDS** deducted separately is for **income tax purposes** and has no bearing on GST ITC.
* So, **both TDS can co-exist**, and each is claimed/refunded separately in respective filings.
---
### 4. **Before Notification of Postponement:**
* Before postponement, PSUs were expected to deduct GST TDS from October 2017 on payments exceeding Rs 2.5 lakh.
* Since postponed, no GST TDS deduction was mandatory before 1st April 2018.
---
### 5. **Summary:**
| Point | Details |
| ------------------------------- | ---------------------------------------- |
| Applicable Entities | PSUs, Govt bodies, notified persons |
| Rate | 1% of taxable value |
| Effective Date (postponed) | From 1st April 2018 |
| Deduction on | Taxable supply payments (goods/services) |
| Claim by Supplier | As Input Tax Credit in GST returns |
| Coexistence with Income Tax TDS | Yes, independent and separate |
---
If you want, I can help you draft a sample TDS deduction and reporting process for your PSU client or prepare FAQs to clarify common doubts. Want me to?
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