Legal Updates

Stay informed with the latest GST, Income Tax & compliance notifications

CBDT Clarifies No TDS on GST Component of Invoice

Apr 13, 2025 Adv. Mahtab Ali Ansari

The Central Board of Direct Taxes (CBDT) has clarified that when the GST component is indicated separately on the invoice, no tax should be deducted at source (TDS) on the GST amount. This clarification was issued to address confusion among deductors under Section 194C and 194J of the Income Tax Act. It aims to reduce unnecessary compliance burdens and avoid excess deductions from service providers.