Summary: GST TDS compliance for April 2026 requires specified entities such as government departments, local authorities, and notified persons to follow strict deduction, deposit, and reporting obligations under Section 51 of the CGST Act, 2017 read with Rule 66 of the CGST Rules. TDS applies where the contract value exceeds ₹2,50,000 (excluding GST), at a rate of 2%—split into 1% CGST and 1% SGST for intra-state supplies or 2% IGST for inter-state transactions. Deduction must be made at the earlier of payment or credit to the supplier, followed by timely deposit and filing of Form GSTR-7 by 10th May 2026. Upon filing, Form GSTR-7A certificates are auto-generated for suppliers to claim credit. Non-compliance attracts late fees of ₹200 per day (capped at ₹5,000) and 18% annual interest. Accurate reconciliation, threshold checks, and timely filing are essential to avoid penalties and ensure smooth GST credit flow.
Legal Framework for GST TDS
TDS under GST is governed by Section 51 of the CGST Act, 2017 read with Rule 66 of the CGST Rules, 2017.
Applicability
TDS provisions apply to:
- Government departments or establishments
- Local authorities
- Government agencies
- Notified persons (as per government notifications)
Threshold Limit
- TDS is required where the value of supply under a contract exceeds ₹2,50,000 (excluding GST and cess)
Rate of TDS
- 2% total TDS
- 1% CGST + 1% SGST (intra-state)
- 2% IGST (inter-state)
Due Date for April 2026
The TDS return is filed in Form GSTR-7.
- Tax Period: April 2026
- Due Date for Filing: 10th May 2026
As per Rule 66 of the CGST Rules, GSTR-7 must be filed within 10 days after the end of the month in which deduction is made.
Key Compliance Requirements
Entities responsible for TDS must ensure the following:
1. Deduction of TDS
- Deduct at the time of:
- Payment, or
- Credit to supplier (whichever is earlier)
2. Deposit of TDS
- The deducted tax must be deposited with the Government within the prescribed time through the GST portal
3. Filing of GSTR-7
- Monthly return including:
- Details of deductor and deductee
- Amount paid and TDS deducted
- Tax liability and payment details
4. Issuance of TDS Certificate
- Certificate in Form GSTR-7A must be issued to the deductee
- It is generated automatically on the GST portal after filing GSTR-7
Interest and Late Fees
Failure to comply may attract penalties:
- Late Fee: ₹200 per day (₹100 CGST + ₹100 SGST), subject to a maximum of ₹5,000 (as per Section 47 of CGST Act)
- Interest: 18% per annum (as per Section 50 of CGST Act) on delayed payment
Practical Considerations for Businesses
- Verify whether contracts exceed the threshold limit
- Ensure correct classification of suppliers and transactions
- Reconcile TDS with books and GST portal records
- File nil returns where applicable to avoid penalties
- Ensure deductees can claim TDS credit in their electronic cash ledger
Conclusion
For April 2026, the due date to file GSTR-7 is 10th May 2026. Timely compliance with GST TDS provisions helps avoid penalties and ensures smooth credit flow for suppliers.
For expert guidance on this topic, contact your tax professional today.
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