When TDS on GST applied

This query is : Resolved

Quick Summary

GST TDS u/s 51 applies contract-wise, not by clubbing multiple orders. If each order is a separate contract below 2.5 lakh, no TDS. If under one contract exceeding 2.5 lakh, TDS applies (excluding GST value).

abhijit majumder

abhijit majumder (Querist)
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17 April 2026 Sir
In a 100% State Govt owned undertaking during a FY a supplier supplied goods under multiple orders none of which exceeds Rs.50000/- individually.
However if we combined the bills against the orders it exceeds Rs.250000/-(Rs.400000/- to be precise) .
Can TDS on GST applied?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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17 April 2026 No, GST TDS is not to be applied merely by clubbing multiple separate orders. GST TDS under section 51 is checked contract-wise, not by clubbing all purchases from the supplier during the FY. Therefore, if each order is a separate independent contract and the taxable value of each such contract does not exceed ₹2.5 lakh, TDS is not applicable. However, if these orders are against one common contract/rate contract whose aggregate taxable value exceeds ₹2.5 lakh, then TDS would apply, even if individual invoices are smaller. GST component is excluded for threshold/TDS calculation.

abhijit majumder

abhijit majumder (Querist)
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17 April 2026 Thanks Sir to clarify the issue.
It is basically a strategy adopted by that particular supplier in connivance with some officials of the govt company, with no material proof is available.
Regards
Abhijit

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