TDS and TCS under GST

GST TDS (section 51)

• Who deducts: government departments, local authorities, government agencies and notified bodies.
• When: on payments to a supplier where the contract value exceeds ₹2.5 lakh (excluding GST).
• Rate: 2% (1% CGST + 1% SGST, or 2% IGST).
• Return: deductor files GSTR-7 by the 10th of the next month; certificate GSTR-7A.
• Supplier: accepts the entries on the portal; the amount appears in the electronic cash ledger and can be used to pay tax.

GST TCS (section 52)

• Who collects: e-commerce operators (marketplaces) on net taxable supplies made through them by other sellers.
• Rate: 0.5% (0.25% CGST + 0.25% SGST, or 0.5% IGST) from 10 July 2024 (earlier 1%).
• Return: operator files GSTR-8 by the 10th of the next month and an annual statement.
• Seller: the TCS shows in the electronic cash ledger once accepted.

Sources

• TCS by e-commerce operators reduced to 0.5% (0.25% CGST + 0.25% SGST)