GST TDS On Cross Charge Invoices
GST Video explanation by CA Satbir Singh
One Branch of a Public Sector Undertaking raises GST compliant Tax Invoices for supply of goods or services on another Branch of same Public Sector Undertaking .
Similarly Other Branch also raises GST compliant Tax Invoices for supply of goods or services on first Branch.
Whether TDS GST is applicable on Inter branch settlement on these Tax Invoices ?
Answer : Yes , there is no specific exemption under GST Act. TDS has to be deducted as per Section 51 of CGST Act 2017
Relevant provisions of Section 51 of CGST Act 2017
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 | |
| (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.
Meaning of Supplier : Section 2(105) of CGST Act 2017
| “supplier” in relation to any goods or services or both, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied; |