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3. 1. Who Is Liable to Deduct TDS
Under GST?
• According to section 51, here are the
liabilities of the deductors who can deduct TDS
under GST:
• Department of state government or central
government
• Local authority
• Government agencies
• An authority or a board or any other party,-
• Set up by an Act of Parliament or a State
Legislature; or
• Established by any Government,
4. 2. When One Can Deduct TDS?
• The deductors who we talked about in the above
section are able to deduct TDS from the amount
they pay to their suppliers. These recipients
can only deduct the TDS tax if the total value
of the taxable goods and/or services meets Rs
2.50 Lakhs. Also, For Intra-state supplies, TDS
@ 2% is deductible where 1% represents CGST and
1% represents SGST. However, in the case of
Inter-state supplies, 2% represents IGST.
5. 3. Situations for TDS Deductors
• The deductors can deduct TDS from the payment
made to the supplier under the following
conditions-
• The total amount paid to a single contract
should be over Rs 2.50 Lakhs. However, this is
a taxable value and therefore, it should not
include any taxes.
• Service provider and the receiver should be in
the same state or in a union territory.
Moreover, this also relates to intra-state
supplies where the TDS rate should be 2% to be
deducted by the deductor for IGST/CGST/SGST.
