INTRODUCTION
Missing compliance deadlines can lead to penalties and unnecessary scrutiny. One such important compliance is filing the TDS return under GST for March 2026.

WHAT IS TDS UNDER GST?
Tax Deducted at Source (TDS) under GST is governed by Section 51 of the CGST Act. It requires specified persons (mainly government bodies and notified entities) to deduct tax while making payments to suppliers.

Key points:

• Applicable when contract value exceeds ₹2,50,000 (excluding GST)
• Deduction rate: 2% (1% CGST + 1% SGST or 2% IGST)
• Deductor must deposit TDS and file return in Form GSTR-7

DUE DATE FOR MARCH 2026

• TDS return filing (GSTR-7): 10 April 2026
• Deposit of TDS: On or before 10 April 2026

This is a strict statutory deadline, and delays can attract penalties and interest.

WHO IS REQUIRED TO DEDUCT TDS?
As per GST provisions, the following entities are required to deduct TDS:

• Government departments
• Local authorities
• Government agencies
• Notified persons (as per CBIC Notification No. 50/2018 – Central Tax)

For example, if a government department hires a contractor for ₹5,00,000, TDS must be deducted before payment.

COMPLIANCE REQUIREMENTS
To ensure proper compliance, the deductor must:

1. Deduct TDS at applicable rates
2. Deposit TDS within due date
3. File GSTR-7 return
4. Issue TDS certificate (Form GSTR-7A) to the deductee

LEGAL REFERENCES

• Section 51 of CGST Act, 2017 – Governs TDS under GST
• Rule 66 of CGST Rules – Prescribes filing of GSTR-7
• CBIC Notification No. 50/2018 – Specifies entities liable for TDS

These provisions ensure transparency and tracking of tax deductions in government-related transactions.

LATE FEES AND PENALTIES
Failure to comply can result in:

• Late fee: ₹100 per day under CGST + ₹100 under SGST (max ₹5,000 each)
• Interest: 18% per annum on delayed payment
• Penalty for non-deduction or short deduction

Example:
If TDS of ₹10,000 is deducted but deposited late by 30 days, interest liability will arise along with late fees.

PRACTICAL TIP / CA INSIGHT
Many deductors miss this deadline due to confusion between income tax TDS and GST TDS.

Important practical tips:

• Maintain a separate compliance tracker for GST TDS
• Reconcile contracts above ₹2.5 lakh monthly
• Automate reminders for the 10th of every month
• Ensure vendor GSTIN accuracy to avoid mismatches

FAQ SECTION

1. Is GST TDS applicable to private companies?
   No, only specified government entities and notified persons are required to deduct TDS under GST.
2. What happens if GSTR-7 is not filed?
   Late fees and interest will apply, and compliance rating may be impacted.
3. Can the deductee claim TDS credit?
   Yes, the deducted amount is reflected in the supplier’s electronic cash ledger.
4. Is there any threshold for GST TDS?
   Yes, TDS is applicable only if contract value exceeds ₹2,50,000 (excluding GST).
5. What is Form GSTR-7A?
   It is the TDS certificate issued to the supplier after filing GSTR-7.

CONCLUSION
The due date of 10 April 2026 for GST TDS compliance is critical for government entities and notified deductors. Timely deduction, deposit, and return filing help avoid penalties and ensure smooth credit flow to vendors.

For expert guidance on this topic, contact your tax professional today.