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.