Frequently Asked Questions (FAQs) released by CBIC on TDS under GST

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The Central Board of Indirect Taxes and Customs (“CBIC”) has issued a ready reckoner for DDO/ other detectors on the topic “TDS under GST” dated September 28, 2018 through which CBIC has clarified all the relevant provision of TDS law with brief description and diagrammatic representation.

GST Law mandates Tax Deduction at Source (TDS) vide Section 51 of the CGST/SGST Act 2017, Section 20 of the IGST Act, 2017 and Section 21 of the UTGST Act, 2017. GST Council in its 28th meeting held on 21.07.2018 recommended the introduction of TDS from 01.10.2018. Notification No. 33/2017 – Central Tax dated 15.09.2017 was issued by the CBIC to enable registration of tax deductors.

Following are the key highlighted point which are covered under the FAQs:

  • All the DDOs of the (a) a department or establishment of the Central Government or State Government; (b) local authority; (c) Governmental agencies; (d) an authority or a board or any other body, -(i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with fifty-one percent or more participation by way of equity or control, to carry out any function; (e) a society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860); (f) public sector undertakings.
  • Every Government office shall get itself mandatorily registered under GST.
  • No fee is required to be paid for obtaining a GST Registration on the common portal.
  • DDO of a small Government Office which has not entered into any contract with any vendor whose taxable value of supply is more than Rs 2.5 Lakh in the recent past, are liable to register only when DDO make a payment on which tax is required to be deducted.
  • The Deductors i.e. DDO is required to furnish a return in FORM GSTR-7 electronically for the month in which such deductions have been made in accordance with the provision of section 39(3) of the CGST/SGST Acts, 2017. Hence, submission of FORM GSTR-7 is not required for a month in which no deduction is made.

Complete FAQ can be accessed at: