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GST TDS...

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VIKRAM SAHU

21 Points Posted on 17 July 2020

Is deduction of GST TDS is applicable on payment made by a government agency to another..??
if yes ...??
under which proviso..??

Replies (2)

Quick Summary

This discussion clarifies the applicability of GST TDS on payments made by one government agency to another. It explains that GST TDS, a 2% deduction (1% CGST, 1% SGST or 2% IGST for inter-state supplies), is generally required when the supply value exceeds £2.5 lakh. The provisions for GST TDS have been in effect since 1st October 2018, as per Section 51 of the CGST Act.

Vijayprakash P

776 Points Posted on 17 July 2020

In GST, TDS 2%is required to be deducted on payment (1%cgst and 1%sgst. )inter-state supply(IGST 2%) - made to the supplier of taxable goods or service of both where the value of such supply under the contract exceeds 2.5Lakh. The provision of TDS on GST are applicable from 1st october2018(Notification No. 50/2018-Central Tax dated 30th september 2018.