Contract for the purpose of TDS under GST

Section 51 of the Central Goods and Services Tax (CGST) Act, 2017 refers to the deduction of tax at source (TDS) on certain supplies. The term 'contract' used in this section refers to an agreement between two or more parties that creates legally binding obligations. This can include contracts for the supply of goods or services, as well as other types of contracts such as lease agreements or licensing agreements.

However, not every supply between a government body and a supplier can be considered as a contract for the purposes of TDS under GST. The CGST Act specifies that TDS is to be deducted only on certain supplies made by specified categories of taxpayers, such as government departments or local authorities.