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CGST Section 51 · GST TDS · 2% Deduction

GST TDS Calculator (Section 51)

Check instantly whether 2% GST TDS applies on your contract, with the CGST + SGST or IGST split and net payable to the supplier.

📄 Contract details
Contract taxable value Value of supply under the contract, excluding GST
GST TDS under Section 51 is deducted on the taxable value only — not on the GST charged in the invoice.
🧭 Type of supply
Place of supply
Intra-state supply (supplier & place of supply in the same state) attracts 1% CGST + 1% SGST. Inter-state supply attracts 2% IGST. The total TDS is 2% either way.

GST TDS breakdown

Section 51
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Disclaimer: Indicative estimate for GST TDS under Section 51 of the CGST Act. The ₹2,50,000 threshold is checked per contract on the taxable value excluding GST. Consult a professional for deductor registration, deposit and GSTR-7 compliance.

What is GST TDS under Section 51

Certain notified persons — government departments, PSUs, local authorities and specified agencies — must deduct Tax Deducted at Source (TDS) under GST when they pay a supplier. The rate is a flat 2% on the taxable value of supply under a contract, but the obligation is triggered only when the total value of that supply under the contract exceeds ₹2,50,000 (excluding GST). If the contract value is ₹2.5 lakh or below, no GST TDS is deducted.

2%
Total GST TDS rate on the taxable value of supply
₹2.5L
Threshold — TDS applies only when contract value exceeds this
1% + 1%
CGST + SGST split for intra-state supply
GSTR-7
Monthly return the deductor files by the 10th

Who deducts, and when

GST TDS is deducted at the time of payment (or credit) to the supplier of taxable goods or services. It is computed on the value of the supply excluding the GST shown in the invoice, so the supplier is never taxed on tax.

Who must deduct

Central & State Government departments, local authorities, governmental agencies, PSUs and other notified persons registered as TDS deductors under GST.

The ₹2.5 lakh threshold

Deduct only when the total value of supply under a contract exceeds ₹2,50,000, excluding GST. Value at or below ₹2.5L → no TDS.

Intra vs inter-state

Intra-state (supplier state = place of supply) → 1% CGST + 1% SGST. Inter-state → 2% IGST. The total is 2% in both cases.

Deposit & return

Deposit the TDS to government by the 10th of the next month and file GSTR-7. A TDS certificate in Form GSTR-7A is then available to the supplier, who claims it as credit.

GST TDS worked examples

A few common contract values and how the 2% GST TDS plays out. The deduction is on the taxable value only; the net amount is what the supplier receives against that value.

₹5,00,000 intra-state
GST TDS @ 2%₹10,000
CGST 1% + SGST 1%₹5,000 + ₹5,000
Net payable₹4,90,000
₹8,00,000 inter-state
GST TDS @ 2%₹16,000
IGST 2%₹16,000
Net payable₹7,84,000
₹2,40,000 any
Contract value≤ ₹2.5L
GST TDSNil
Net payable₹2,40,000
Figures are indicative and assume the amounts entered are the taxable value excluding GST. Enter your own contract value above to see the exact split.
Frequently Asked Questions
Who deducts GST TDS under section 51?

Government departments and establishments, local authorities, government agencies and other notified persons, including certain public sector undertakings and societies. Registered persons receiving metal scrap from other registered persons were also brought in as notified deductors.

At what rate and threshold is GST TDS deducted?

2% — 1% CGST plus 1% SGST, or 2% IGST — where the total value of the taxable supply under a contract exceeds ₹2,50,000, excluding GST and cess.

When is TDS not deducted?

Where the location of the supplier and the place of supply differ from the state of registration of the recipient, since neither CGST/SGST nor IGST can be properly applied. It is also not deducted on exempt supplies.

What are the deductor's obligations?

Deposit the tax by the 10th of the following month, file GSTR-7, and issue a certificate in GSTR-7A. Late deposit attracts interest at 18%, and a late GSTR-7 attracts a daily late fee.

How does the supplier get the credit?

The deducted amount appears in the supplier's TDS/TCS credit received statement. On accepting it, the amount is credited to their electronic cash ledger and can be used to pay tax.

Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.