Skip to content

CMA Final · Indirect Tax Laws and Practice · TDS and TCS under GST

Under GST, TDS under section 51 of the CGST Act is required to be deducted by certain notified persons. Which of the following supplies is the deduction applicable to, as per the standard provisions?

GST TDS applies to a taxable supply under a contract whose value, excluding GST, exceeds Rs 2,50,000, when the recipient is a notified deductor. Contracts valued at Rs 2,50,000 or less, and exempt supplies, do not attract deduction, so the threshold is decisive.

  1. ASupply of taxable goods or services where the contract value exceeds Rs 2,50,000, excluding taxCorrect
  2. BSupply of taxable goods or services where the contract value is Rs 2,50,000 or less
  3. CAny supply of exempt goods by a registrant to a government department
  4. DSupply of goods or services where the location of supplier and place of supply are different States, regardless of value

Explanation

TDS under GST applies where the total value of supply under a contract exceeds Rs 2,50,000, excluding tax (GST, compensation cess) and excluding value of tax indicated in the invoice. Contracts at or below that value, and wholly exempt supplies, do not attract TDS. The inter-State option is wrong because value threshold applies, not location alone.

Did you get it right without looking?

One question tells you little. A timed set on TDS and TCS under GST shows your real accuracy, how long you take and where you lose marks.

Practise TDS and TCS under GSTFree diagnostic mock

More TDS and TCS under GST questions