Circular No. 65/39/2018-DOR
Government of India
Ministry of Finance
Department of Revenue
New Delhi, Dated the 14th September 2018
1. Secretaries of the Central Ministries as per the list enclosed.
2. Chief Secretaries of all States/UTs with legislature/ UTs without
3. All Finance Secretaries/ CCTs of the States/ UTs with Legislature/UTC
4. Chairman CBIC /All Principal Chief Commissioners/ Chief
Commissioners/ Principal Commissioners/ Commissioners of Central Tax
(through Member, GST, CBIC)
5. Pr. Chief Controller of Accounts, CBIC.
Subject: Guidelines for Deductions and Deposits of TDS by the DDO
Section 51 of the CGST Act 2017 provides for deduction of tax by the government Agencies (Deductor) or any other person to be notified in this regard, from the payment made or credited to the supplier (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. The amount deducted as tax under this section shall be paid to the Government by the deductor within ten days after the end of the month in which such deduction is made along with a return in FORM GSTR-7giving the details of deductions and deductees. Further, the deductor has to issue a certificate to the deductee mentioning therein the contract value, rate of deduction, the amount deducted, etc.
2. As per the Act, every deductor shall deduct the tax amount from the
payment made to the supplier of goods or services or both and deposit the tax
amount so deducted with the Government account through NEFT to RBI or a
cheque to be deposited in one of the authorized banks, using challan on the
common portal. In addition, the deductors have entrusted the responsibility of filing returns in FORM GSTR-7 on the common portal for every month in which
2the deduction has been made based on which the benefit of deduction shall be made available to the deductee. All the DDOs in the Government, who are performing the role as deductors have to register with the common portal and get the GSTIdentification Number (GSTIN).