TDS on Gst

CBDT has clarified through Circular No. 23/2017 that if GST on services has been indicated separately in the invoice, then no tax would be deducted on GST component.

The central or state government may mandate the following enterprises to deduct TDS at the rate of 2% (1% SGST +1% CGST) from the payment made or credited to a supplier for the taxable supplies of value greater than Rs. 2.5 lakh. The limit of Rs. 2.5 lakh is for a single contract and not for aggregate value in a month or year.