TDS and TCS provisions under Revised GST Law, TDS Provisions Under GST Law, TCS Provisions Under GST Law. Tax Deducted at Source and Collection of Tax at Source Rules as Per Revised CGST Act 2017. In VAT Law there is provision of TDS in case of work contract in most of the Sates though in Service Tax there is no provision of TDS and TCS. Under Service Tax, it is directly or indirectly being governed by Reverse Tax Mechanism. But GST law has expressly provided the TDS and TCS provision under Section 51 and 52 respectively. Now, I will discuss the provisions. Now scroll down below n check more details for “TDS and TCS Provisions under Revised GST Law”

TDS and TCS provisions under Revised GST Law

Tax Deducted at Source [Section –51]

This provision is meant for Government and Government undertakings and other notified entities making contractual payments in excess of Rs. 10 Lakhs to suppliers. While making such payment, the concerned Government / authority shall deduct 1% of the total payable amount and remit it into the appropriate GST account.

Any amount shown as TDS will be reflected in the electronic cash ledger of the concerned supplier. He can utilize this amount towards discharging his liability towards tax, interest fees and any other amount.

TDS Deductor will account for such TDS in the following ways:

  1. Such deductors needs to get compulsorily registered.
  2. They need to remit such TDS collected by the 10th day of the month succeeding the month in which TDS was collected and reported in GSTR 7.
  3. The amount deposited as TDS will be reflected in the electronic cash ledger of the supplier.
  4. They need to issue certificate of such TDS to the deductee within 5 days of deducting TDS failing which fees of Rs. 100 per day subject to maximum of Rs. 5000/- will be payable by such deductor.

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Collection of Tax at Source [Section 52]

This provision is applicable only for E-Commerce Operator.


  • The operator needs to withhold a percentage (not yet defined) of the amount which is due from him to the supplier at the time of making actual payment to the supplier.
  • Such withheld amount is to be deposited by the 10th of the next month.
  • The amount deposited as TCS will be reflected in the electronic cash ledger  of the supplier.
  • The cash ledger will reflect all deposits made in cash, and TDS/TCS made on account of the taxpayer. The information will be reflected on real time basis. This ledger can be used for making any payment on account of GST.

Notwithstanding anything to the contrary contained in this Act, every electronic commerce operator (hereafter in this section referred to as the “operator”), not being an agent, shall collect an amount calculated at such rate not exceeding one per cent., as may be notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator.

Explanation.– For the purposes of this sub-section, the expression “net value of taxable supplies” shall mean the aggregate value of taxable supplies of goods or services or both, other than services notified under sub-section (5) of section 9, made during any month by all registered persons through the operator reduced by the aggregate value of taxable supplies returned to the suppliers during the said month.

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Latest Comments

  1. SCRAP VALUE IS Rs.10000, GST IS 18% . What would be the TCS amount to be collected. Whether TCS will be Scrap Value+ GST or TCS only on Scrap value

  2. thank you for sharing this. But what are the supply on which this TDS will be applicable?
    Whether it will be applicable on all the payment made against supply?


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