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Section 51 of cgst act TDS under gst goods and services tax act

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Section 51 of cgst act TDS under gst

This section Covers

  • TDS (tax deduction at source) under CGST ACT, section 51
  • TDS (tax deduction at source) under IGST ACT, section 20(X)
  • TDS (tax deduction at source) under UTGST/SGST ACT, section 21(XI) and state acts accordingly

Chapter X, Payment of Tax- Section 51

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SEC 50               SEC 52

A video interview by GSTSEVA on TDS


Rate of TDS:  1% One Percent

Limit: If Total Value of Supply Exceeds 2.5 Lakhs

Value Means: Value without any tax i.e excluding all taxes on invoice

No tax deduction required where the location of supplier and place of supply is different from the State of the registration of the recipient.


Payment Method:  Within 10 days from the end of the month in which it deducted. CLICK HERE TO SEE HOW TO PAY

Issuance of Certificate:  Mandatory within 5 days of payment to govt

Penalty : For non certification- Rs. 100/day upto Rs. 5000 maximum

 For non payment to govt –  Interest maximum 18%

For non deduction- Rs. 10000 or amount not deducted/short deducted which ever is higher.


Recent Ammendments/Updates

As per Notification No. 33/2017 – Central Tax, 15th September 2017

The following entities also need to deduct TDS-

  1. An authority or a board or any other body which has been set up by Parliament or a State Legislature or  by a government, with 51% equity ( control) owned by government
  2. A society established by the Central or any State Government or a Local Authority and the society is registered under the Societies Registration Act, 1860
  3. Public sector undertakings

The provisions of Section 51 (deducting TDS under GST) have become applicable from 18th September 2017.

Section 51 as CGST Act TDS under gst – as it is from act(bare act)

51. (1) Notwithstanding anything to the contrary contained in this Act, the Government may mandate,–

(a) a department or establishment of the Central Government or State Government; or
(b) local authority; or
(c) Governmental agencies; or
(d) such persons or category of persons as may be notified by the Government on the recommendations of the Council, (hereafter in this section referred to as “the deductor”), to deduct tax at the rate of one per cent. from the payment made or credited to the supplier (hereafter in this section referred to as “the deductee”) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees:

Provided that no deduction shall be made if the location of the supplier and the place of supply is in a State or Union territory which is different from the State or as the case may be, Union territory of registration of the recipient.

Explanation.––For the purpose of deduction of tax specified above, the value of supply shall be taken as the amount excluding the central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice.

(2) The amount deducted as tax under this section shall be paid to the Government by the deductor within ten days after the end of the month in which such deduction is made, in such manner as may be prescribed.

(3) The deductor shall furnish to the deductee a certificate mentioning therein the contract value, rate of deduction, amount deducted, amount paid to the Government and such other particulars in such manner as may be prescribed.

(4) If any deductor fails to furnish to the deductee the certificate, after deducting the tax at source, within five days of crediting the amount so deducted to the Government, the deductor shall pay, by way of a late fee, a sum of one hundred rupees per day from the day after the expiry of such five days period until the failure is rectified, subject to a maximum amount of five thousand rupees.

(5) The deductee shall claim credit, in his electronic cash ledger, of the tax deducted and reflected in the return of the deductor furnished under sub-section (3) of section 39, in such manner as may be prescribed.

(6) If any deductor fails to pay to the Government the amount deducted as tax under sub-section (1), he shall pay interest in accordance with the provisions of sub-section (1) of section 50, in addition to the amount of tax deducted.

(7) The determination of the amount in default under this section shall be made in the manner specified in section 73 or section 74.
(8) The refund to the deductor or the deductee arising on account of excess or erroneous deduction shall be dealt with in accordance with the provisions of section 54:

Provided that no refund to the deductor shall be granted, if the amount deducted has been credited to the electronic cash ledger of the deductee.