Determination of Taxable value under, Goods and Services Tax - GST

[Sudhir Kumar]

How to determine the taxable value in TDS cases in GST. WHETHER the GST would be calculated on gross value charged including TDS of income tax, GST, Royalty etc

Posts / Replies

[KASTURI SETHI]

Only CGST, SGST/UTGST and IGST and Compensation Cess  are to be excluded  and no other deduction is allowed. See  Explanation to Section 51 (1) of CGST Act.

[Sadanand Bulbule]

Dear Sir

I endorse the clarification with relevant provisions.

[Shilpi Jain]

Is it a domestic transaction or a overseas transaction?

[Shilpi Jain]

In case of domestic transaction TDS also part of consideration and GST to be paid thereon.

In case it is an overseas transaction, while checking liability under RCM, TDS need not be added to value for computing GST since it is the service recipient's liability under IT Act. There are a few cases in this regard.

[Padmanathan Kollengode]

Agree with Shilpi ma'am.

Also pls note CBDT circular No 23/2017 dtd. 19-07-2017 wherein it has been clarified that wherever GST is shown separately TDS will not be deducted on GST amount.

In essence, a invoice for taxable value of Rs.1,00,000 with 18% GST and 2% TDS will look like this:

Taxable Value:	Rs. 1,00,000
Add: CGST 9%	Rs. 9,000
Add: SGST 9%	Rs. 9,000
Total value	Rs. 1,18,000
Less: TDS@2%	Rs. 2,000
Net payable	Rs. 1,16,000