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GST TDS u/s 51 Applicability on RBI and it's subsidiaries

811 views 2 replies

venkateswara reddy

Senior finance and accounts

31 Points Posted on 07 November 2025

The Reserve Bank of India (RBI) is a statutory body constituted under the RBI Act, 1934. There are certain companies that are wholly owned subsidiaries of RBI (incorporated as Section 8 companies/private limited companies).

For the purpose of GST TDS applicability under Section 51 read with Notification No. 50/2018 – Central Tax dated 13.09.2018, should RBI and its 100% owned subsidiary companies be treated as “Government entities / Government-controlled bodies / PSUs”?

looking for clarity regarding GST TDS applicability under Section 51 of the CGST Act.please clarify me

Replies (2)

Aashok Kumar Sharma

Finance/Compliance Consultant

61657 Points Posted on 08 November 2025

Practical Implication for Accounts/Finance

When making payments to vendors/service providers:
- RBI itself: No GST TDS deduction unless notified.
- RBI subsidiaries (Section 8 / Pvt Ltd): No GST TDS deduction unless notified.
Keep in mind: Some RBI subsidiaries may provide services to government departments; in that case, the liability to deduct TDS falls on the government department, not on the subsidiary.