TDS ON GST ON PAYMENT TO GOVT ORGANISATION

This discussion clarifies whether Tax Deducted at Source (TDS) needs to be applied to Goods and Services Tax (GST) when making payments to government organisations. It confirms that TDS under the GST Act must be deducted by government entities on inward supplies exceeding £250,000, at a rate of 2%. The consensus is that TDS should not be levied on the GST component itself to avoid double taxation, but rather on the gross value of the supply.