TDS and TCS under GST: Sections 51 and 52

Government bodies deduct GST TDS (2%) on contracts above ₹2.5 lakh and file GSTR-7. E-commerce operators collect TCS (0.5% from 10 July 2024) and file GSTR-8.

GST TDS (Section 51)

• Deductors: government departments, local authorities, government agencies and notified persons.
• Rate: 2% (1% CGST + 1% SGST, or 2% IGST) on payments to suppliers where the total value of supply under a contract exceeds ₹2.5 lakh (excluding tax).
• Return: GSTR-7 by the 10th of the following month. Suppliers accept the credit on the portal, and it lands in their electronic cash ledger.

GST TCS (Section 52)

• Collected by e-commerce operators on net taxable supplies made through them.
• Rate reduced from 1% to 0.5% (0.25% CGST + 0.25% SGST, or 0.5% IGST) from 10 July 2024.
• Return: GSTR-8 by the 10th of the following month.

GST TDS/TCS are separate from income-tax TDS/TCS. Book them in separate ledgers.