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TDS under GST

Vipul Acharya (Account Officer) (646 Points)

20 January 2019

TDS deduction under GST is 1% or 2%

Kindly confirm

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2 Replies

pritesh (CA Final student) (7101 Points)
Replied 20 January 2019

2% is the rate of tds
1% is the rate of tcs

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Vinod Babu (24191 Points)
Replied 20 January 2019

TDS @ 2% is required to be deducted on payment made to the supplier of taxable goods or services of both where the value of such supply under a contract exceeds Rs. 2.5 Lakhs.

The provisions of TDS on GST are applicable from 1st Oct 2018 [Notification No. 50/2018 – Central Tax dated 13th Sept 2018].

1% TDS is required to be deducted under both the CGST and the SGST Act and therefore the total TDS to be deducted is 2%.
In case of an inter-state transaction, IGST would be levied and 2% TDS would be levied in this case as well.