What is GST TDS full form? | Eliminate your fears and all doubts (2%)

This post for GST TDS full form and we recommend to must read our post of TCS full form.

The GST TDS full form said as Tax Deducted At Source is the tax collects on the certain said percentage on the amount.

The percentage payable the receiver of the goods and services or on both in the GST TDS full form.

The collected tax on a specified percentage this generates revenue for the government and so it goes all to government.

In short, GST TDS full form is a small amount of payment liable to pay Government by a person who is eligible for and as per the term of TDS.

Implementation of GST TDS Full Form:

Provisions are applicable by the Central Government in Notification No. 50/2018 – Central Government tax issued date 13th Sept 2018.

The implementation date of TDS in GST as per the Government of India is 1 October 2018. 


Tax Deducted at Source Term of GST TDS full form:

It means to be GST payer is liable to pay TDS as per the Government specified rate under specified taxes like as we discuss SGST, CGST, and IGST is payable on a taxable amount on before Deduction of GST.

Rates for TDS:

TDS deducted as a small amount of payment to the Government. Which is notified by CBIC (at the rate of 2% as per divided similarly in CGST at 1% and in SGST at 1%. In IGST, 2% on the amount is chargeable to pay Tax.

Section for TDS:

As per the CGST Act, 2017, TDS implied in Oct 2018, under section 51 also read with CGST rule 66. 

What is GST TDS full form? | Eliminate your fears and all doubts (2%)

TDS Deduction applicable authorities:

The following receivers or deductors required to deduct TDS on the contract value exceeding 2.5 lakh of an amount which credited to the supplier.

  • Establishments or departments under the Central Government and State Government 
  • Other Local Authorities
  • Governmental Agencies
  • Persons and categories of persons notified by the Government as per Council

As per the notifications:

Under the notification no. 50/2018 authorities, namely:

With 51% participation for doing any function

  • Societies under Society Registration Act, 1860
  • Public sector undertakings

Exemption as per notifications:

  • Notification no. 61/2018

Supply made under public sector undertakings to other public sector undertakings

  • Notification no. 73/2018

Supply by one person to another person under department/establishment made by Central and State Government and local authorities, other agencies.

Supply amount liable for Deduction: 

In the TDS, there is provided applicability on the contract value of supply is exceeds two lakh fifty thousand. 

The contract value of the amount:

When a person bonds with a contract for the supply of specific goods and services which have a total cost of a deal exceeds as per limit. But he paid small amounts of installments as prescribed in the contract since a person liable to pay TDS of GST.

The contract value of supply excludes:

  • UTGST (Union Territory GST)
  • CGST (Central GST)
  • SGST (State GST)
  • Cess

Registration under GST:

It is mandatory for the person who fulfilled the criteria to get GST registration through Tax Deducted and Collected Account Number (TAN).

Certification of GST TDS:

Certificate issue in Form GSTR 7A after the payment made to the Government within five days. If it fails to comply with the person liable on late fee charge which about to INR 100/- per day and maximum load applicable as INR 5000/-


Payment made for GST TDS:

The deductible amount should be payable by a person after the end of the month within ten days.

Objective of TDS tax in GST:

The TDS mainly introduced in Income Tax now it becomes applicable in GST as well.

The purpose behind implementing GST can take a look at overall transactions and it will be beneficial to monitor compliance.

The TDS full form is a powerful provision to make controlled on the Tax Evasion and also provides an audit trail for tax net.

Who will deduct TDS in GST?

In the GST TDS receiver or deductor shall be entered into a contract with the supplier exceeding the limit of 2.5 lakhs on taxable goods and services is essential to deduct TDS.

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