Tax deduction at source, Sec 51 of CGST Act, 2017

 

Section 51 of CGST Act, 2017 Tax deduction at source

 

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The below post explains about Tax deduction at source under section 51 of CGST Act,2017.

 

Section 51 of CGST Act, 2017 explains Tax deduction at source as below: (The amendments if any will also be updated here soon).

 

 

 

The extract of Section 51 of CGST Act,2017 quoted below:

 

51 Tax deduction at source

 

51. (1) Notwithstanding anything to the contrary contained in this Act, the Government

may mandate,––

(a) a department or establishment of the Central Government or State

Government; or

Tax deduction at source, Sec 51 of CGST Act, 2017(b) local authority; or

(c) Governmental agencies; or

(d) such persons or category of persons as may be notified by the Government

on the recommendations of the Council,

(hereafter in this section referred to as “the deductor”), to deduct tax at the rate of one per

cent. from the payment made or credited to the supplier (hereafter in this section referred to

as “the deductee”) of taxable goods or services or both, where the total value of such supply,

under a contract, exceeds two lakh and fifty thousand rupees:

Provided that no deduction shall be made if the location of the supplier and the place

of supply is in a State or Union territory which is different from the State or as the case may

be, Union territory of registration of the recipient.

Explanation.––For the purpose of deduction of tax specified above, the value of

supply shall be taken as the amount excluding the central tax, State tax, Union territory tax,

integrated tax and cess indicated in the invoice.

(2) The amount deducted as tax under this section shall be paid to the Government by

the deductor within ten days after the end of the month in which such deduction is made, in

such manner as may be prescribed.
(3) The deductor shall furnish to the deductee a certificate mentioning therein the

contract value, rate of deduction, amount deducted, amount paid to the Government and

such other particulars in such manner as may be prescribed.

(4) If any deductor fails to furnish to the deductee the certificate, after deducting the

tax at source, within five days of crediting the amount so deducted to the Government, the

deductor shall pay, by way of a late fee, a sum of one hundred rupees per day from the day

after the expiry of such five day period until the failure is rectified, subject to a maximum

amount of five thousand rupees.

 (5) The deductee shall claim credit, in his electronic cash ledger, of the tax deducted

and reflected in the return of the deductor furnished under sub-section (3) of section 39, in

such manner as may be prescribed.

(6) If any deductor fails to pay to the Government the amount deducted as tax under

sub-section (1), he shall pay interest in accordance with the provisions of sub-section (1) of

section 50, in addition to the amount of tax deducted.

(7) The determination of the amount in default under this section shall be made in the

manner specified in section 73 or section74.

(8) The refund to the deductor or the deductee arising on account of excess or erroneous

deduction shall be dealt with in accordance with the provisions of section 54:

Provided that no refund to the deductor shall be granted, if the amount deducted

has been credited to the electronic cash ledger of the deductee.

 

 

The above information clarifies about Tax deduction at source under section 51 of CGST Act,2017.  

 

If you have any comments about Section 51 of CGST Act, 2017 explaining Tax deduction at source, share below your thoughts:

 

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Comments


anony: hi... what about RBI ??! will it come under a department or establishment of the Central Government or State Government category ???

anony: hi... what about RBI ??! will it come under a department or establishment of the Central Government or State Government category ???

P MOHAN RAO: Are there any government orders to deduct TDS on GST under Section 51 of GST Act. please clarify

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