applicability of TDS under GST if contract value of of 2.5 lakh plus GST.

Question Bank › Category: Goods & Service Tax (GST) › applicability of TDS under GST if contract value of of 2.5 lakh plus GST.
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Renu asked 3 years ago

are we required to deduct TDS under GST where the contract value is exactly Rs. 250000/- but GST extra?
what are the cases where GST TDS is not required to be deducted. ?

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sweta answered 3 years ago

GST TDS is not required to be deducted where the taxable value of supply ( for both goods & services) (excluding GST) is up to Rs. 250000/- Hence is contact value is Rs. 250000/- plus GST.. Then GST TDS is not required to be deducted. 
If the taxable value of supplies under a contract is more than 250000/- then GST-TDS is applicable on full value. (not only on value above 2.5 lakh). GST TDS is deducted on taxable value (excluding GST).
GST TDS is not required to be deducted in following cases:-

  1. if the contract value is upto 250000.
  2. if the transaction is between PSU to PSU (Public Sector Undertaking)
  3. if exempted supplied. 
  4. if a tax invoice is issued before 1.10.2018
  5. if advance payment was done before 1.10.2018.
  6. if payment is made to an unregistered supplier. 
  7. If GST is payable under RCM (reverse charge mechanism)
  8. If Supplies are not subject to GST like petrol etc.
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