Is TDS under GST applicable when GST is paid under RCM ?


Is TDS under GST applicable when GST is paid under RCM ?


TDS under GST is not applicable when the payment is made under Reverse Charge Mechanism (RCM) by the recipient of service.

Reverse charge is a mechanism where the recipient of the goods or services is liable to pay Goods and Services Tax (GST) instead of the supplier. In this case, the liability of tax payment is transferred to the recipient/receiver instead of the supplier.

Further, TDS under GST is applicable only to a specified class of persons like:
A department or an establishment of the Central Government or State Government; or
Local authority; or
Governmental agencies; or
Such a person or category of persons as may be notified by the Government on the recommendations of the Council.

Transaction of which TDS on GST is to be Deducted:

TDS is to be deducted at the rate of 2 percent on payments made to the supplier of taxable goods and/or services, where the total value of such supply, under an individual contract, exceeds two lakh fifty thousand rupees.

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