Simplify your business registration with SureTax Bizcare –
your trusted partner for seamless Registration, Compliance, and Management.
Under the GST regime, Tax Deduction at Source (TDS) is applicable to certain notified entities :
✔ Government departments,
✔ Local authorities
✔ Specific public sector undertakings
that make payments to suppliers for the supply of goods and/or services. In such transactions, the recipient (deductor) is required to deduct tax at the time of payment or credit to the supplier, whichever is earlier, and deposit it with the government.
The standard TDS rate under GST is 2% for business-to-business (B2B) transactions—split as 1% CGST and 1% SGST for intra-state supplies, or 2% IGST for inter-state supplies. The deducted tax must be deposited with the government within 10 days from the end of the month in which the deduction is made.
Entities liable to deduct TDS under GST must be registered as TDS deductors and obtain a GSTIN. They are required to file monthly TDS returns in Form GSTR-7, deposit the deducted tax, and issue TDS certificates to the suppliers.
GST registration is mandatory for entities required to deduct Tax Deducted at Source (TDS) under the GST Act. Registering as a tax deductor ensures that the business is legally compliant and minimizes the risk of penalties, interest, and legal action due to non-compliance.
Timely and accurate GST registration helps businesses avoid fines and penalties that may arise from non-compliance with the provisions of the GST law. It also ensures smooth operations without legal interruptions.
GST regulations mandate proper maintenance of invoices and records. This encourages better documentation, reduces the chances of disputes with the tax authorities, and facilitates smoother audits and reconciliations..
Being GST-registered is a mark of tax compliance, which enhances a business’s credibility among suppliers, customers, financial institutions, and regulatory bodies. It helps build trust and professionalism in business dealings.
GST has unified the indirect tax structure in India, simplifying the tax process and making it easier for businesses to operate, expand across states, and manage tax payments and returns efficiently.
A key benefit of GST registration is the ability to claim input tax credit on the GST paid on purchases and inputs. This leads to significant cost savings and reduces the overall tax liability.
Suretax provides expert business and financial consulting services, ensuring strategic growth and success for our clients.
© SureTax Bizcare.
Copyright © 2025 All rights reserved.
