Income Tax Tds On Sgst, Cgst Or Igst (Gst) Charged In Invoice?

watch_later 3 years, 7 months ago

Whether TDS should be deducted or not on GST charged in tax invoice?

Earlier under service tax, I believe we had exemption and tds was not to be deducted on service tax portion on invoice.

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1 Answer

Pulkit Sharma watch_later 3 years, 7 months ago

No Income Tax TDS required to be deducted on CGST/SGST/IGST/Cess: CBDT Clarifies

Earlier, under the Service Tax regime, it was clarified vide Circular No 1/2014 dated 13-01-2014 that "wherever Service Tax component comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source under Chapter XVIl-B of the Income Tax Act, 1961 (the Act) on the amount paid or payable without including such Service Tax component."

CBDT has amended the above Circular to make is applicable to GST on Services and hence TDS can be deducted on the Invoice Value excluding GST. Though it is obvious that TDS can't be deducted on the GST Amount, the clarification will definitely clear the doubts, if any, among the trade, industry, professionals & IT Officers and leaves no room for any other interpretation.

Credit to #GSTSathi Manoj Agarwal for articulating this.

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