TDS on GST @ 2% where taxable service exceeds Rs.250000/-

Sir/Madam

Whether TDS on GST @ 2% where taxable supply of goods/services applicable to Central Government Services to State Government is applicable.

State Government Transport is providing services to the Central Government towards convey of mail bags from one place to another place under service agreement. Central Government is paying certain amount for getting this services. Whether TDS on GST @ 2% to be recovered when the bill amount exceeds Rs.250000/- or the it is exempted from the deducting TDS.