Will GST be applicable on 194R?
This query is : Resolved
15 September 2025
A company has deducted TDS on 194R, do we have to pay GST?
15 September 2025
If the benefit/perquisite is a “supply” under GST:
If the benefit/perquisite qualifies as a "supply" under Section 7 of the CGST Act, and it is given in the course or furtherance of business, then GST is applicable.
The supplier (i.e., the person giving the benefit) may have to pay GST on the value of the benefit.
If the benefit is a gift, free sample, or incentive, GST may apply based on the situation.
If it is not a supply:
If the benefit/perquisite is not a taxable supply (e.g., purely personal in nature or not in course of business), then GST will not apply, even though TDS under 194R is still required.
If the benefit/perquisite qualifies as a "supply" under Section 7 of the CGST Act, and it is given in the course or furtherance of business, then GST is applicable.
The supplier (i.e., the person giving the benefit) may have to pay GST on the value of the benefit.
If the benefit is a gift, free sample, or incentive, GST may apply based on the situation.
If it is not a supply:
If the benefit/perquisite is not a taxable supply (e.g., purely personal in nature or not in course of business), then GST will not apply, even though TDS under 194R is still required.
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19 September 2025
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