Determine the applicability of TDS provisions of the CGST Act, 2017 with proper reasons under the following independent cases: (ii) Darshil, a registered person in the state of Punjab, awarded a work contract by a Govern
CS Professional · Advanced Tax Laws · PYQS · December 2023
Determine the applicability of TDS provisions of the CGST Act, 2017 with proper reasons under the following independent cases: (ii) Darshil, a registered person in the state of Punjab, awarded a work contract by a Governmental Department also registered under GST in Punjab, amounting to ₹3,06,800 (including total GST of ₹46,800 being CGST + SGST).
Answer & Explanation:
Certain specified person including the Government agencies are required to deduct tax from the payment made to the supplier of taxable goods and/or services, where the total value of such supply (excluding Goods & Services Tax) under a contract exceeds ₹2,50,000. Since the value of contract excluding GST exceeds ₹2,50,000 (₹3,06,800 - ₹46,800 = ₹2,60,000), the Governmental agency is mandatorily required to deduct Central Goods and Services Tax @1% and State Goods and Services Tax @ 1%.
Topics: GST
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