To Understand the Applicability of TDS & TCS under GST, First need to understand the Law behind it. TDS (Tax Deducted at Source and TCS (Tax Collected at Source) are two important concepts under GST. TDS (Tax deducted at source) is deducted at the time of making certain payments, while TCS (Tax collected at source) is a provision that mandates the collection of tax by the seller at the time of making certain specified supplies. Section 51 and section 52 of CGST act talks about the TDS and TCS provision under GST.
Section 51 of Central goods and service tax (CGST) act made it mandatory for Government and Government authorities or notified entities making contractual payment to vendor where total value of such supply under contract exceeds Rs.2.5 Lakhs then need to deducted TDS at the rate of 1 percent each in case of Central Goods and Service Tax (CGST) and State Goods and Service Tax (SGST) and 2 percent in case of Integrated Goods and Service Tax (IGST).
Section 52
Section 52 has been inserted under the Central goods and service tax (CGST) act for all ECommerce aggregators to bring TCS under GST. E-commerce aggregators are made responsible for deducting and depositing TCS from their E-commerce vendor under the GST law. TCS will be deducting at the rate of 1 percent in case of IGST and 0.5 percent each in case of CGST and SGST.
FAQ's
TDS at the rate of 1 percent in case of CGST and SGST and 2 percent IGST.
TCS will be deducting at the rate of 1 percent in case of IGST and 0.5 percent in case of CGST and SGST
Government and Government authorities or notified entities can deduct TDS under GST.
All E Commerce aggregators can deduct TCS under GST.
According Section 51 of Central goods and service tax (CGST) act made it mandatory for Government and Government authorities or notified entities making contractual payment to vendor where total value of such supply under contract exceeds Rs.2.5 Lakhs then need to deducted TDS at the rate of 1 percent each in case of Central Goods and Service Tax (CGST) and State Goods and Service Tax (SGST) and 2 percent in case of Integrated Goods and Service Tax (IGST).
According to Section 52 under the Central goods and service tax (CGST) act for all ECommerce aggregators to bring TCS under GST. E-commerce aggregators are made responsible for deducting and depositing TCS from their E-commerce vendor under the GST law. TCS will be deducting at the rate of 1 percent in case of IGST and 0.5 percent each in case of CGST and SGST.
