As per section 51 of CGST Act, 2017, GST TDS provisions are applicable for the following persons.

a. A department or establishment of the Central or State Government, or

b. Local authority, or

c. Government Agencies, or

d. Such persons are category of persons as may be notified, by the Central or a State Government on the recommendations of the Council.

As per Notification number 50/2018 dated 13-12-2018 the following persons are included in Section 51(1)(d)

1. Authority or board or other body set-up by an act of Parliament or State Legislature or established by any Government with 51% ownership or control.
2. Society established by CG or SG or Local Authority under Societies Registration Act, 1860
3. Public Sector Undertakings

Important points to consider for compliance of GST-TDS

1. TDS Provisions are contained in Section 51 of CGST/SGST Act
   
2. TDS provisions are effective from 01-10-2018.
   
3. for contract value of more than Rs 250000
   
4. If contract includes both exempted and taxable supplies, then the value of Rs 250000 is for taxable component only.
   
5. If a supply is in the nature of continuous supply involving multiple invoices and payments are made in installments, The agreement between the supplier and the recipient is of prime consideration and if it is for a continuous supply to be made in installments, then the contract would include all the part supplies made and covered under separate invoices. It is in this context, the supply under a contract should be understood and the total value of such supple under a contract, if it exceeds INE 250,000/- would be liable for deduction of tax at source, subject to other conditions. [Udupi Nirmiti Kendra 2021(6) TMI 387 dated 08.06.2021 (AAR-Karnataka)]
   
6. Dipak Kanti Mazumder Dynamic Engineers 2020 (3) TMI 412 dated 06.03.2020 (AAR-WB) and Dolphin Techno Waste Management (P) Limited 2020 (3) TMI 445 dated 06.03.2020: TDS Notifications are applicable only if TDS is deductible on applicant’s supply under section 51 of GST Act. If the supply is exempt, TDS notification is not applicable. The applicant performs compaction service and transport compacted garbage to the dumping station within the help of hook loaders mounted in compactor machine recipient to the Recipient, which is a local authority as defined under section 243W of the Constitution, and exempted under the GST, it is not subject to TDS.
   
7. There is no threshold limit for registration as deductor.
   
8. Payment of TDS should be done within 10th of succeeding month in which TDS was deducted by debiting electronic cash ledger.
   
9. Monthly Return to be submitted by 10th day of succeeding month in which TDS deducted in Form GSTR-07
   
10. The Deductee can claim the amount of tax deducted in electronic cash ledger after validation and after the due date of filing GSTR-07
    
11. TDS certificate will be made available electronically to the deductee in form GSTR-7A.
    
12. Registration Processi. PAN and TAN number issued under Income Tax Act, 1961 is required.ii. Online application in GST REG-07iii. Certificate issued in REG-06
    
13. TDS deducted can be utilized for payment of output taxes, Interest, penalty or any other amount.
    
14. Delay in payment of TDS will attract 18% p.a interest.
    
15. Default under section 73/74 for non-payment/short payment
    
16. Penalty of INR 10,000 or an amount equivalent to tax evaded under section 51.
    
17. Late fee for delayed filing is Rs 100/- per day maximum up to Rs 5000 under CGST and equivalent amount in SGST.
    
18. TDS not applicable in the following casei. Payment is made to unregistered supplier.ii. Payment is made before 01-10-2018.iii. Tax invoice is issued before 01-10-2018.iv. If Invoice is issued on or after 01-10-2018, part payment is done before 01-10-2018, TDS applicable only for payment done on or after 01-10-2018. v. TDS not applicable in CESS componentvi. Where TDS is payable by deductee under RCM, TDS is not applicable.vii. TDS not appliable for activities or transactions mentioned in Schedule III of CGST/SGST Actsviii. TDS will not be deducted when the Supplier and Place of Supply is in Same State, and the Recipient is located in another State.