05 Oct 2018Posted By: Mudit Handa

All you need to know about TDS Provisions under GST

In an effort to upgrade the GST tax structure and counter tax evasion, the GST council had decided to reintroduce the provisions of Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) with effect from 1st October 2018.

The provision of TCS under GST was implemented on 20th September 2018 by the Central Board of Indirect Taxes and Customs (CBIC).

Very importantly, the government has now brought into effect the TDS mechanism under the GST from 1st October 2018.


#1. When did the Government decide to bring back TDS & TCS under GST?

The Central Government on 13th of September 2018 had declared that the laws related to Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) u/s 51 & 52 of CGST Act-2017 respectively, shall be brought into effect from 1st of October 2018.

  • The government had phased in the TCS mechanism with effect from 20th September 2018.
  • The TDS mechanism has been brought into effect since 1st October 2018 by the Finance Ministry vide the Notification 33/2017 under the head Central Tax.

#2. What is the provision of TDS under GST?

The mechanism for Tax Deduction at Source has been explained u/s 51 of the CGST Act-2017.

As per the section-

If the total value of such supplies under a contract, exceed ₹2.5 lakh, the tax shall be deducted @1% as CGST and 1% as SGST from the total payment of the taxable goods or services or both credited to the supplier or the ‘deductee’ who has the GST registration.


#3. Who is authorised to deduct tax at source under GST?

As per the section 51 of the CGST Act-2017, following parties are authorised to deduct tax at source under GST:

  1. Any authority or a board or any other kind of body, which is
  • Formed by an Act of Parliament or a State Legislature; or
  • Has been established by Central or State Government, with its 51% or more stake through equity or control of operations;
  1. A Society established by the Central or State Government or any Local Authority covered under the Societies Registration Act-1860; or
  2. A Public Sector Undertakings (PSU)

All of the above-mentioned parties are hereby referred to as “Tax Deductors”.

#4. What is the requirement of GST registration for Tax Deductors?

Any of the bodies discussed above that are liable to deduct TDS under GST, is supposed to get a separate GST registration as a Tax Deductor’. For this, he needs to fill the FORM GST-REG 7.


#5. Where is the provision of TDS applicable under GST?

As per the CGST Act 2017, the provision of TDS is made for all the specified entities with GST registration that supply goods & services worth ₹2.5 lakh or above.

#6. What is the Time limit to deposit TDS under GST?

A TDS Deductor under GST is required to deposit the GST tax deducted by him within 10 days following the closing of the month in which the GST was deducted by him.


#7. What is the requirement of GST return filing for the Tax Deductors?

  • The party authorised to deduct tax under GST, i.e. the Tax Deductor is required to follow a separate GST return filing procedure. All the specified Tax Deductors under GST are supposed to file a separate TDS return under GST, i.e the FORM GSTR-7.
  • This GST return filing has to be done within 10 days from the closing of the month in which the GST was deducted.


#8. What if TDS under GST not timely deducted?

In case of default in TDS deposit under GST, an interest shall be chargeable @18% p.a. on the Tax Deductor.


#9. How and when the TDS certificate is to be issued under GST?

A TDS Deductor under GST is also supposed to issue a TDS certificate within 5 days from the date when the amount of TDS under GST was credited. This TDS certificate is to be submitted to the Government with the following details mentioned clearly:

  1. The contract value,
  2. The rate of TDS deduction,
  3. The total amount of TDS deducted,
  4. The total amount of tax paid to the Government; and
  5. Other details as may be required


#10. What is the Late fee for non-issuance of TDS certificate?

In case of failure to issue the TDS certificate under GST, a Late fee @ ₹100/- per day will be applicable, from the day after the expiry of the 5 days period until such failure is rectified. The maximum amount of late fee is ₹5,000/-.


If you require any other assistance regarding GST registration or GST return filing process, feel free to contact us at 8881-069-069.

Download E-Startup Mobile App and Never miss the latest updates relating to your business.

Give a Reply

Fill up the form

E-startupIndia Mobile App


Download our free Android App and get realtime update on your order status.
Easily connect with our professionals handling your order over chat & mobile.
Never miss business compliances due date with advance notifications.

Get E-startupIndia in your mobile

Why Choose Us

e-startupindia member of GOOGLE

Serving business owners with an Average 4.8+ Google Rating.

e-startupindia certified #AxixBank

Trusted by Axis bank to cater its clients all licensing & compliance needs.

e-startupindia NG Alliance Partner

Providing lending solutions for business needs with NeoGrowth.

e-startupindia Google Partner

Open Neo bank account worldwide & provides cross-border remittance solutions.

e-startupindia member of CII

E-startupindia is a Proudly Member of Confederation of Indian Industry.The CII is a premier business association in India which works to create an environment.

e-startupindia certified #Etstartupindia

E-Startup India is duly certified under GOI's Startup India scheme and is renowned for our tech-driven solutions for business & legal services requirements for MSMEs.

e-startupindia Google Partner

E-Startup India is a Google Partner, which implies we are rigorously involved in assisting SME businesses to market their presence in the digital world.

Popular Services

Private Limited Company | Public Limited Company | One Person Company | Limited Liability Partnership | Partnership Firm | Sole Proprietorship Firm | Section 8 Company Registration | USA Company Registration | UK Company Registration | UAE Company Registration | Singapore Company Registration | Company Registration Hong Kong | Import Export Code | IEC Modification | AD Code Registration | Spice Board Registration | US FDA Certification | ISO 9001 2015 | ISO 14001 EMS | ISO 22000 FSMS | ISO 27001 ISMS | ISO 50001 Energy Management | ISO 45001 | ISO Surveillance | ISO Certification | MSME Registration | FSSAI Registration | Shop Establishment Registration | Barcode Registration | Coffee Board Registration | Startup India Certificate | ZED Certification | Trademark | Trademark Objection Reply | Trademark Opposition | Trademark Hearing | Trademark Formality Check Fail | Website Development | Patent | Copyright | Design Registration | Business Name Suggestion | Logo Designing | Trademark Assignment Service | GST Registration | GST Modification | GST Cancellation | GST Return Filing | GST Invoice Software | UIN Registration | Income Tax Return | Income Tax Notice | Income Tax Refund | Income Tax Assessment | TDS Return Filing | Form 15CA / CB | Professional Tax Registration | 12A and 80G Registration | FCRA Registration | CSR Registration | Project Report | Pitch Deck | Seed Fund Startup India | Accounting for Ecommerce | Virtual cfo services in india | Bookkeeping & Accounting | Private limited Company Annual Compliance | Form INC-22A | Form 15CA / CB | Company Strike Off | Commencement of Business | Fssai annual return | Online CA Consultancy | Income Tax Return Filling | LLP Annual Compliances | Form DIR-3 KYC | Virtual Office for Company Registration |


  • e-startupindia South Asia's Leading Multimedia News Agency
  • Business Standard
  • e-startupindia Outlook
  • e-startupindia Htmedia
  • e-startupindia Yahoo News
  • e-startupindia New Delhi Times
  • e-startupindia India.com
  • e-startupindia IBTN9