Section 51 – Tax Deduction at Source (TDS)
Section 51 of CGST Act, 2017 – Tax Deduction at Source (TDS) Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Scope and Objective of Section 51 Section 51 provides for Tax Deduction at Source (TDS) under GST in specified cases. The objective of GST-TDS is to: Ensure tax compliance by suppliers Create a trail of transactions Prevent tax leakage in Government contracts 2. Statutory Provision – Section 51(1) Notwithstanding anything contained in this Act, the Government may mandate certain persons to deduct tax at source at the rate of 1% from the payment made or credited to the supplier of taxable goods or services or both, where the total value of supply under a contract exceeds the prescribed limit. 3. Persons Required to Deduct TDS As notified, TDS under GST is applicable to: Departments or establishments of Central / State Government Local authorities Governmental agencies Such other pe...