When TDS on GST applied
This query is : Resolved
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?
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?
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.
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
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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