Situations where tax deduction is not required to be made under GST

Situations where tax deduction is not required to be made under GST : Tax deduction is not required in following situations. As per section 51 of the CGST Act, 2017 read with notification No. 33/2017-Central Tax dated 15.09.2017 GST is applicable on : (a) a department or establishment of the Central Government or State Government; or (b) local authority; or (c) Governmental agencies; or (d) an authority or a board or any other body,-

(i) set up by an Act of Parliament or a State Legislature; or

(ii) established by any Government, with fifty-one per cent. or more participation by way of equity or control, to carry out any function; or

(e) a society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of1860); or (f) public sector undertakings. But there are fewSituations where tax deduction is not required to be made under GST by above mentioned entities. These are are given below.

Situations where tax deduction is not required to be made under GST

a) Total value of taxable supply Rs. 2.5 Lakh under a contract. b) Contract value > Rs. 2.5 Lakh for both taxable supply and exempted supply, but the value of taxable supply under the said contract Rs. 2.5 Lakh. c) Receipt of services which are exempted. For example services exempted under notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 as amended from time to time. d) Receipt of goods which are exempted. For example goods exempted under notification No. 2/2017 Central Tax (Rate) dated 28.06.2017 as amended from time to time. e) Goods on which GST is not leviable. For example petrol, diesel, petroleum crude, natural gas, aviation turbine fuel (ATF) and alcohol for human consumption. f) Where a supplier had issued an invoice for any sale of goods in respect of which tax was required to be deducted at source under the VAT Law before 01.07.2017, but where payment for such sale is made on or after 01.07.2017 [Section 142(13) refers]. g) Where the location of the supplier and place of supply is in a State(s)/UT(s) which is different from the State / UT where the deductor is registered. h) All activities or transactions specified in Schedule III of the CGST/SGST Acts 2017, irrespective of the value. i) Where the payment relates to a tax invoice that has been issued before 01.10.2018. j) Where any amount was paid in advance prior to 01.10.2018 and the tax invoice has been issued on or after 01.10.18, to the extent of advance payment made before 01.10.2018. k) Where the tax is to be paid on reverse charge by the recipient i.e. the deductee. l) Where the payment is made to an unregistered supplier. m) Where the payment relates to Cess component. Kindly referStandard Operating Procedure for TDS under GST for more informationon TDS under GST.