GST TDS Calculator — Section 51
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GST TDS Under Section 51 — Complete Guide
Tax Deducted at Source (TDS) under GST was introduced under Section 51 of the CGST Act, 2017. Certain categories of persons are required to deduct TDS at 2% (1% CGST + 1% SGST/UTGST for intra-state, or 2% IGST for inter-state) when making payments for taxable supplies exceeding ₹2,50,000.
Who Must Deduct TDS Under GST?
- A department or establishment of the Central or State Government
- Local authority
- Governmental agencies
- Persons or categories notified by the Government on the Council's recommendation
- An authority, board, or body set up by Parliament, State Legislature, or Government with 51%+ equity or control by Government
- Society established by Central or State Government or a local authority under the Societies Registration Act
- Public Sector Undertakings
TDS Rate and Threshold
- Rate: 2% of the payment (1% CGST + 1% SGST for intra-state; 2% IGST for inter-state)
- Threshold: ₹2,50,000 per contract (excluding GST)
- TDS is deducted from the value of supply, not on the GST component
- Individual payments below ₹2.5 lakh still attract TDS if the total contract exceeds the threshold
Filing Requirements
- GSTR-7: Monthly return by the deductor — due by 10th of the following month
- GSTR-7A: TDS certificate generated automatically and available to the deductee
- Late filing penalty: ₹100/day under CGST + ₹100/day under SGST (max ₹5,000 each)
How Does the Supplier Claim TDS Credit?
Once the deductor files GSTR-7, the TDS amount reflects in the supplier's electronic cash ledger automatically. The supplier can use this credit to pay GST on outward supplies or claim a refund if TDS exceeds their liability.
Frequently Asked Questions
What is TDS under GST?
TDS under GST (Section 51) requires certain notified persons — government departments, local authorities, PSUs — to deduct 2% from payments exceeding ₹2.5 lakh made for taxable supplies. It is split as 1% CGST + 1% SGST for intra-state, or 2% IGST for inter-state.
What is the TDS rate under GST?
The TDS rate is 2% of the payment amount (excluding GST). For intra-state supplies, it splits into 1% CGST and 1% SGST. For inter-state supplies, 2% IGST is deducted.
What is the threshold for TDS deduction under GST?
TDS applies when the total value of supply under a single contract exceeds ₹2,50,000 (excluding GST). Individual payments within the contract are subject to TDS even if each individual payment is below ₹2.5 lakh.
Who is required to deduct TDS under GST?
Government departments, local authorities, governmental agencies, PSUs, and bodies with 51%+ government equity. Private companies are not required to deduct TDS under GST.
How does the supplier claim TDS credit?
The TDS amount auto-populates in the supplier's electronic cash ledger once the deductor files GSTR-7. The supplier can use it to pay outward GST or claim a refund.