What is TDS

TDS: Tax Deducted at source under GST. Section 51 of the CGST Act 2017 provides for

  • deduction of tax by the Government Agencies (Deductor) or any other person to be notified in this regard,
  • from the payment made or credited to the supplier (Deductee) of taxable goods or services or both,
  • where the total value of such supply, under a contract, exceeds two lakhs and fifty thousand rupees.
  • The amount deducted as tax under this section shall be paid to the Government by deductor within ten days after the end of the month in which such deduction is made
  • Along with a return in FORM GSTR-7 giving the details of deductions and deductees

The subject section which provides for tax deduction at source was not notified to come into force with effect from 1st July, 2017, the date from which GST was introduced. Government has recently notified that these provisions shall come into force with effect from 1st October, 2018, vide Notification No. 50/2018 – Central Tax dated 13th September, 2018.