GST under TDS not applicable if applicants supply to specified categories of persons notified by Government

In re Uttarakhand Purv Sainik Kalyan Nigam Ltd. (GST AAR Uttarakhand)

On perusal of legal provisions of Section 51 of CGST Act, 2017, we find that the Government has authorized following persons , to deduct tax at the rate of two per cent (1% CGST + 1% SGST) from the value of supply excluding the central tax, State tax, Union territory tax, integrated tax and cess, made to the supplier of taxable goods or services or both w.e.f 01.10.2018, provided that the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees:-

(a) a department or establishment of the Central Government or State Government; or

(b) local authority; or

(c) Governmental agencies; or

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