Summary of Tax Deducted at Source (TDS) and Deposited under GST Laws for the Month of April, 2026

Tax Deducted at Source (TDS) under GST is an important compliance mechanism for specified entities. This article provides a concise summary of TDS deducted and deposited for April 2026 along with key legal provisions and due dates.

Overview of TDS under GST

TDS under GST is governed by Section 51 of the CGST Act, 2017, read with Rule 66 of the CGST Rules. It mandates certain notified entities to deduct tax while making payments to suppliers.

Key highlights:

• Applicable only to specified entities such as:
  • Government departments
  • Local authorities
  • Government agencies and notified bodies
• Deduction rate:
  • 2% (1% CGST + 1% SGST) or 2% IGST
• Threshold limit:
  • Applicable only if contract value exceeds ₹2.5 lakh (excluding GST)

TDS Deduction and Deposit – April 2026

For transactions carried out in April 2026, the following compliance applies:

• TDS must be deducted at the time of payment to the supplier
• The deducted amount must be deposited with the government through the GST portal
• The details must be reported in Form GSTR-7

Due Date:

• GSTR-7 filing due date: 10th May 2026

This ensures that the deducted tax is properly credited to the supplier and reflected in their GST returns.

Filing Requirements – Form GSTR-7

Form GSTR-7 is a monthly return that includes:

• GSTIN of deductor
• Invoice-wise TDS details
• Amount deducted and deposited
• Interest or late fees (if applicable)
• Amendments to previous returns

After filing:

• A TDS certificate (Form GSTR-7A) is generated
• The deducted amount is reflected in the supplier’s GSTR-2A/2B for ITC claim

Compliance Impact and Importance

Timely deduction and deposit of TDS ensures:

• Proper tax credit flow to suppliers
• Reduced risk of tax evasion
• Transparency in government and large contract payments

Non-compliance may lead to:

• Interest at 18% per annum
• Late fee up to ₹5,000 for delayed GSTR-7 filing

Key Points for April 2026

• TDS applicable only on contracts above ₹2.5 lakh
• Deduction rate remains 2%
• Monthly return GSTR-7 due by 10th May 2026
• Ensure timely certificate issuance (GSTR-7A)
• Verify TDS credit in supplier’s GST returns

Conclusion

TDS under GST is a critical compliance requirement for specified entities. For April 2026, timely deduction, deposit, and filing of GSTR-7 by 10th May 2026 is essential to avoid penalties and ensure seamless credit to suppliers.

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