GST TDS calculator
Example: RA bill ₹10,00,000 + 18% GST = ₹11,80,000. GST TDS ₹20,000 and income-tax TDS ₹20,000 → ₹11,40,000 received. Not tax advice; confirm with your CA.
What is TDS under GST?
Under Section 51 of the CGST Act, government departments, local authorities, government agencies and notified bodies such as PSUs must deduct 2% TDS (1% CGST + 1% SGST, or 2% IGST) from payments to suppliers where the total contract value exceeds ₹2.5 lakh. TDS is on the value excluding GST. The contractor accepts the entry on the GST portal and gets it as cash credit.
Who deducts, and when
- Deductors: government departments, local authorities and governmental agencies under Section 51(1), plus bodies notified by Notification 50/2018-Central Tax, such as entities with 51% or more government equity or control and public sector undertakings (Notification 50/2018). In force since 1 October 2018.
- Threshold: the ₹2.5 lakh test applies to the total contract value, not to each bill. A small RA bill under a large contract still attracts GST TDS.
- Base: the value of supply excluding GST and cess.
- No deduction where the supplier's location and the place of supply are in a state different from the deductor's registration.
- Deposit and return: by the 10th of the following month, with GSTR-7; the certificate is GSTR-7A. GSTN has introduced invoice-wise reporting in GSTR-7, so each deduction is reported against your invoice number, date and taxable value (GSTN advisory). Check the portal for the current reporting rules.
How the contractor claims GST TDS credit
Check the deductor filed GSTR-7
The TDS appears on your GST portal once the deductor files GSTR-7.
Accept the entry
Accept it in the TDS/TCS credit received section and file. Rejected entries go back to the deductor to correct (GST portal FAQ).
Use it from your cash ledger
Accepted TDS is credited to your electronic cash ledger and can be used to pay GST.
Match it with your bills
Reconcile each deduction with the RA bill it came from. A mismatched invoice number is the commonest reason credit goes missing.
GST TDS vs income-tax TDS on the same bill
| GST TDS | Income-tax TDS | |
|---|---|---|
| Law | CGST Act, Section 51 | Income-tax Act, 2025, Section 393 (formerly 194C) |
| Who deducts | Government bodies and notified PSUs | Most businesses paying contractors |
| Rate | 2% (1% + 1%, or 2% IGST) | 1% individual/HUF, 2% others |
| On what | Value excluding GST | Amount excluding GST where shown separately |
| How you get it back | Electronic cash ledger, after accepting on the GST portal | Credit against income tax (match with your tax statement) |
Both come off the same RA bill, along with retention and other recoveries. See the RA bill format for the full order of deductions.
Track both TDS deductions in True Site Sync
When a client pays you, record the receipt with its deductions: GST-TDS (CGST s.51), income-tax TDS (393(1) / 194C), labour cess, retention and others. The TDS receivable register lists what clients deducted from your receipts, so you can match it with the portal and your tax statement. See GST billing for contractors.
Frequently asked questions
What is the GST TDS rate for contractors?
2% of the value excluding GST: 1% CGST + 1% SGST for intra-state supplies, or 2% IGST for inter-state supplies, under Section 51 of the CGST Act.
Who has to deduct GST TDS?
Government departments, local authorities, governmental agencies and notified bodies such as PSUs and entities with 51% or more government equity or control, under Section 51 and Notification 50/2018-Central Tax.
Is GST TDS deducted on each bill below ₹2.5 lakh?
The ₹2.5 lakh threshold applies to the total contract value. If the contract exceeds it, GST TDS applies to each payment, even a small RA bill.
Is GST TDS calculated on the GST amount?
No. It is 2% of the value of supply excluding GST and cess.
How does a contractor claim GST TDS credit?
Accept the TDS entry on the GST portal after the deductor files GSTR-7. Accepted credit goes to your electronic cash ledger, which you can use to pay GST.
Can both GST TDS and income-tax TDS be deducted from one RA bill?
Yes. On government work, a firm's ₹10,00,000 RA bill plus 18% GST typically loses ₹20,000 GST TDS and ₹20,000 income-tax TDS.
GST TDS kaise claim kare?
Deductor ke GSTR-7 file karne ke baad GST portal par TDS entry accept karein. Accept hote hi raqam electronic cash ledger me aa jati hai.
Never lose track of a TDS deduction
Record GST TDS, income-tax TDS and other deductions on every receipt, and match them with the portal.
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