Will GST be applicable on 194R?

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This discussion clarifies whether Goods and Services Tax (GST) is applicable when Tax Deducted at Source (TDS) under Section 194R has been deducted. GST will apply if the benefit or perquisite provided is considered a 'supply' under the CGST Act and is given in the course of business. However, if the benefit is not a taxable supply, such as something purely personal, then GST will not be applicable, although TDS deduction under 194R is still mandatory.

santosh kr poddar

santosh kr poddar (Querist)

15 September 2025 A company has deducted TDS on 194R, do we have to pay GST?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

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.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

19 September 2025 Good Luck...

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