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Tds under gst for government tenders

Uttam Saha (TAX PROFESSIONAL)     01 February 2019

Uttam Saha
 2 likes  97 points

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A tender floated by a government department has the following values which has been accepted at 3,22,136/-:

Gross Bill 441509.99
GST 12%+ 52981.20
Total 494491.19
Cess 1% + 4944.91
Total 499436.10
Tender Accept Rate :Less - 35.50% 177299.82
Say  322136.00


Now my query is for TDS under GST for the above contract should we work backwards in the following manner to arrive at the amount on which TDS is to be deducted.

Tender Value x
GST 12%+ 0.12x
Total 1.12x
Cess 1% + 0.0112x
Total 1.1312x

So assuming 1.1312x = 322136; then x = 2,84,773.69, the tender values may be assumed as follows:

Gross Bill 284773.69
GST 12%+ 34172.84
Total 318946.53
Cess 1% + 3189.47
Total 322136.00


My query is that should TDS on GST be deducted @ 1% each (CGST & SGST) on 2,84,773.69/- or some other values?

1 Like
Pankaj Rawat

Pankaj Rawat (GST Practitioner)     01 February 2019

Pankaj Rawat
GST Practitioner 
 3672 likes  49839 points

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Yes you are correct on 284773.69/- the TDS will be Deducted @ 1% CGST + 1%SGST (total 2%)

TDS will always be deducted on Taxable value only . As per the SOP on TDS release on CBIC site : For the purpose of deduction of TDS, the value of supply shall exclude
the taxes leviable under GST (i.e. ‘Central tax’, ‘State tax’, ‘UT tax’,
‘Integrated tax’ & Cess). Thus, no tax shall be deducted on ‘Central tax’,
‘State tax’, ‘UT tax’, ‘Integrated tax’ and cess component levied on
2 Like
Vinod Babu

Vinod Babu   02 February 2019

Vinod Babu

 2215 likes  24126 points

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Good explanation Mr Pankaj ji.......
1 Like

prasad (EMPLOYEES)     10 May 2019

 7 likes  313 points

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but HOW to SHOW IN GSTR 3B if gst exemption like NSDC SKILL DEVELOPMENT

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