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Whether tds on gst is to be deducted on bills served prior to obtaining registration

Subhrajit Bhattacharjee (Service) (61 Points)

30 May 2019

The client has served bills of Rs. 10,00,000/- on 30.04.19 on which he did not have GST registration. He obtained GST registration on 15.05.19. Whether TDS on GST is to deducted while making payment on 30.05.19 assuming that the amount of Rs. 10,00,000/- is inclusive of GST?

Another question:

The client has served 5 bills the total amount of which exceed Rs. 2,50,000/-.The client has not charged GST on 4 bills and charged GST on 1 bill. Whether TDS on GST is to be deducted on all the bills?

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3 Replies

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 31 May 2019

Condition 1:

YES ,...the TDS need to be deducted becuase
The provsion of Section 51 of CGST Act , Tds is to be deducted at the time of either making actual payment to the supplier or credited his account in books of account
And the provisions of Act do not explicitly use the verbatim “whichever is earlier”

Hence at the time of payment if the supplier is Registered & provided his GSTN to deductor , the deductor is liable to deduct TDS.
But its also depend upon contract agreement , if deductor go by contract aggreement might not deduct TDS as supplier is URD( refer sop on cbic site)

Comdition 2

As per Section 51 TDs is to be deducted as per contract & if the contract amount is 2.5lac exluding CGST/SGST/IGST , then deductor will deduct the TDS on all the bills while making payment for the same.

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