GST is levied on goods and services on supplies for a consideration in the course of business wherein in definition of business includes that any activity or transactions undertaken by the Central/State Government. However, certain exemption has been provided in regard to supplies made to Government and supplies made by Government. Except a few, most of the services provided by the Government are liable to be taxed under reverse charge i.e recipient is required to pay tax on the same instead of Government paying to itself. It is also important to note that transactions over Rs.2.5 lacs per contract are subject to TDS under the provisions of GST Law. Therefore, it is important to understand transactions with the Government.

Considering the nitty -gritty involved while transacting with Government, Indirect Taxes Committee of ICAI has decided to bring out “E-publication on Supplies by/to Government under GST”. The publications amply cover supplies made to and by the Government and major exemptions provided under the law in lucid and easy language. The provisions related to TDS under GST has also been discussed with example and illustrations, which Government has to deduct and deposit while making payment for supplies made to Government on account of deductee.

Download ICAI E-publication on Supplies by/to Government under GST

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February 2021