TDS Under GST

At JuroLegal, we help businesses and government entities comply with Tax Deducted at Source (TDS) under GST, ensuring accurate deduction, deposit, and reporting as per Section 51 of the CGST Act, 2017. Our experts manage the entire TDS compliance process — from registration as a TDS deductor, timely deduction at 2%, filing of Form GSTR-7, and issuing TDS certificates (GSTR-7A) — to prevent errors, penalties, or interest. Whether you are a government department, PSU, local authority, or business notified to deduct TDS under GST, we ensure your deductions and filings are accurate, reconciled, and compliant with CBIC guidelines. With JuroLegal’s professional support, you can manage your GST TDS obligations smoothly, stay audit-ready, and maintain full statutory compliance without administrative hassles.

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  • What is TDS under GST?
    • Tax Deducted at Source (TDS) is one of the ways to collect tax based on certain percentages on the amount payable by the receiver for goods/services.
    • The collected tax serves as revenue for the government.
    • The provision pertaining to TDS under GST is given under Section 51 of the CGST Act, read with CGST Rule 66.
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Who is Liable to Deduct TDS under GST Law?

    • Entities liable to deduct TDS include:
      • Departments or establishments of the Central Government or State Government.
      • Local authorities.
      • Governmental agencies.
      • Persons or categories of persons as notified by the Government.
      • Entities such as public sector undertakings, societies established by the government, and more.

TDS Applicability and Rate:

    • TDS is deducted at the rate of 2% on payments made to the supplier of taxable goods and/or services.
    • The deduction limit is when the total value of such supply, under an individual contract, exceeds Rs. 2,50,000.
    • No TDS is required when the location of the supplier and place of supply is different from the state of the recipient’s registration.
  • Registration Requirements for TDS Dedicators:
    • A person liable to deduct TDS must compulsorily register under GST.
    • There is no threshold limit for TDS registration.
    • Having a Tax Deduction and Collection Account Number (TAN) issued under the Income Tax Act is mandatory.

Payment and Filing:

    • TDS shall be paid within 10 days from the end of the month in which tax is deducted.
    • It should be filed in Form GSTR-7.