Tax deductions at source

In force Act 12 of 2017 As on 15 Oct 2026

Act 12 of 2017 Ministry Finance Enacted 12 Apr 2017 Cited by 12 provisions Instruments 37

Commencement. 22nd June, 2017 for sections 1, 2, 3, 4, 5, 10, 22, 23, 24, 25, 26, 27, 28, 29, 30, 139, 146 and 164 1st July, 2017 for sections 6 to 9, 11 to 21, 31 to 41, 42 (except proviso to sub-section (9) of S 42), 43 (except proviso to subsection (9) of S 43), 44 to 50, 53 to 138, 140 to 163, 165 to 174.

Section 51 of the Central Goods and Services Tax Act, 2017 deals with tax deductions at source. Notwithstanding anything to the contrary contained in this Act, the Government may mandate,-- (a) a department or establishment of the Central Government or State Government; The Act was enacted on 12 Apr 2017.

(1) Notwithstanding anything to the contrary contained in this Act, the Government may mandate,--
(a) a department or establishment of the Central Government or State Government; or
(b) local authority; or
(c) Governmental agencies; or
(d) such persons or category of persons as may be notified by the Government on the recommendations of the Council,
(hereafter in this section referred to as "the deductor"), to deduct tax at the rate of one per cent. from the payment made or credited to the supplier (hereafter in this section referred to as "the deductee") of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees:
Provided that no deduction shall be made if the location of the supplier and the place of supply is in a State or Union territory which is different from the State or as the case may be, Union territory of registration of the recipient.
Explanation.--- For the purpose of deduction of tax specified above, the value of supply shall be taken as the amount excluding the central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice.
(2) The amount deducted as tax under this section shall be paid to the Government by the deductor within ten days after the end of the month in which such deduction is made, in such manner as may be prescribed.
¹[(3) A certificate of tax deduction at source shall be issued in such form and in such manner as may be prescribed.]
²* * * * *
(5) The deductee shall claim credit, in his electronic cash ledger, of the tax deducted and reflected in the return of the deductor furnished under sub-section (3) of section 39, in such manner as may be prescribed.
(6) If any deductor fails to pay to the Government the amount deducted as tax under sub-section (1), he shall pay interest in accordance with the provisions of sub-section (1) of section 50, in addition to the amount of tax deducted.
(7) The determination of the amount in default under this section shall be made in the manner specified in section 73 or section 74 ³[or section 74A].
(8) The refund to the deductor or the deductee arising on account of excess or erroneous deduction shall be dealt with in accordance with the provisions of section 54:
Provided that no refund to the deductor shall be granted, if the amount deducted has been credited to the electronic cash ledger of the deductee.
Section 51, The Central Goods and Services Tax Act, 2017 (Act 12 of 2017).

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

This section refers to

Referred to by 12

Judgments citing this section

These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.

High Court 29 May 2023 PHHC010661452023

… JUSTICE MANISHA BATRA Present : Mr. Sandeep Singh, Advocate for the petitioner. RITU BAHRI, J. (oral) In the present petition the petitioner is seeking issuance of direction to respondent No.5 to deposit Rs.2,51,444/- i.e. the amount deducted from the first running bills under Section 51 of the Central Goods and Services Tax Act, 2017 & State Goods and Services Tax Act, 2017 against the GSTIN number of the petitioner with the GST portal maintained by respondent No.1. This deduction as TDS @2% is not showing on the GST portal. A detailed representation has been made by the petitioner on 29.12. 2022 …

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High Court 29 May 2023 PHHC010703362023

… JUSTICE MANISHA BATRA Present : Mr.. Sandeep Singh, Advocate for the petitioner. RITU BAHRI, J. (oral) In the present petition the petitioner is seeking issuance of direction to respondent No.5 to deposit Rs.1,90,988/- i.e. the amount deducted from the third running bills under Section 51 of the Central Goods and Services Tax Act, 2017 & State Goods and Services Tax Act, 2017 against the GSTIN number of the petitioner with the GST portal maintained by respondent No.1. This deduction as TDS @2% is not showing on the GST portal. A detailed representation has been made by the petitioner on 29.12. 2022 …

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Made under this section, and citing it

7 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.

Another 30 instruments name this provision in its title or its text without being made under it.

All subordinate legislation

Questions about Section 51

What does Section 51 of the Central Goods and Services Tax Act deal with?

Section 51 of the Central Goods and Services Tax Act is headed "Tax deductions at source". Notwithstanding anything to the contrary contained in this Act, the Government may mandate,-- (a) a department or establishment of the Central Government or State Government;

How do I find court cases under Section 51 of the Central Goods and Services Tax Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: CGST Act 51, section 51 CGST Act, section 51 of the Central Goods and Services Tax Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 51 of the Central Goods and Services Tax Act, and has it changed?

Its own text turns on section 39 (Furnishing of returns), section 50 (Interest on delayed payment of tax), section 54 (Refund of tax), section 73 (Determination of tax, pertaining to the period up to Financial Year 2023-24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of facts), and on 2 further provisions, so none of them can safely be read on its own. 12 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 7: most recently Notification No. 18/2019 – Central Tax dated 10.04.2019 (2019), then Notification No. 57/2018 – Central Tax dated 23.10.2018 (2018), and 5 more.

When was Section 51 of the Central Goods and Services Tax Act enacted?

Section 51 of the Central Goods and Services Tax Act, cited as CGST Act 51, was enacted on 12 Apr 2017 as Act 12 of 2017. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.