GST TDS : Contract Value is Invoice wise or Financial Year wise ?

By | November 3, 2018
Print Friendly, PDF & Email
(Last Updated On: November 3, 2018)

GST TDS : Contract Value is Invoice wise or Financial Year wise ?

We are Central Govt department and  purchasing Co2 Gas cylinder for which we have only the rate per quantity contract.

Individual invoice value do not cross the the limit of Rs.2.50 Lakh  but in a Financial Year total transaction with will cross to Rs.2.50.

Whether TDS under GST will be deducted on the payment ?

Answer : Thus GST TDS is not depended on the Invoice Value or Contract value of Financial Year , but depends on Single Contract Value.

You are required to deduct TDS under GST from every payment / Credit  if Contract Value Exceeds Rs 2.5 Lakh

Relevant provisions of Section 51 of CGST Act 2017

Tax deduction at source .

51. (1) Notwithstanding anything to the contrary contained in this Act, the Government may mandate,—

(a)a department or establishment of the Central Government or State Government; or
(b)local authority; or
(c)Governmental agencies; or
(d)such persons or category of persons as may be notified by the Government on the recommendations of the Council,

(hereafter in this section referred to as “the deductor”), to deduct tax at the rate of one per cent from the payment made or credited to the supplier (hereafter in this section referred to as “the deductee”) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees:

Provided that no deduction shall be made if the location of the supplier and the place of supply is in a State or Union territory which is different from the State or as the case may be, Union territory of registration of the recipient.

Explanation.—For the purpose of deduction of tax specified above, the value of supply shall be taken as the amount excluding the central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice.

Direct Taxes Ready Reckoner
Service Tax Ready Reckoner
Company Law Ready Reckoner
tax deduction at source

Leave a Reply

Your email address will not be published. Required fields are marked *