Should GST TDS be deducted if supplier is under exemption / Composition

By | September 20, 2018
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(Last Updated On: September 20, 2018)

Q.28 Please clarify ITC Credit status for the following condition: if Commission received Without Deducting GST in cases where distributor under Exemption or composition Scheme?

Ans The section concerning GST deduction (Section 51 of CGST Act, 2017) has been operationalized w.e.f 01.10.2018. [ Refer Notification No 50/2018 Central Tax : TDS provision of Section 51 of CGST act enforced from 01.10.2018 ]

TDS u/s 51 of CGST of CGST Act 2017 is required to be deducted by Specified persons from the payment made or credited to the supplier if   taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees:

If the distributor is under threshold exemption or under composition scheme, the requirement for GST deduction depends upon the taxable supply and value of contract rather than the nature of the supplier.


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