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

Businesses and government entities registered as GST TDS deductors must ensure timely compliance with Tax Deducted at Source (TDS) provisions under the Goods and Services Tax (GST) law. For the month of May 2026, the summary of TDS deducted and deposited is required to be reported through Form GSTR-7 within the prescribed due date.

GST TDS Provisions – Key Overview

As per Section 51 of the Central Goods and Services Tax (CGST) Act, 2017, specified persons are required to deduct TDS while making payments to suppliers of taxable goods or services where the value of supply under a contract exceeds ₹2,50,000 (excluding GST and cess).

The provisions generally apply to:

• Central and State Government departments
• Local authorities
• Government agencies
• Public Sector Undertakings (PSUs)
• Other notified persons and authorities under GST law

Applicable TDS Rate under GST

The TDS rate prescribed under GST is:

• 1% CGST + 1% SGST for intra-state supplies
• 2% IGST for inter-state supplies

The deduction is required when the contract value exceeds ₹2.5 lakh, excluding taxes.

Due Date for May 2026 GST TDS Compliance

Entities deducting TDS during May 2026 are required to:

• Deposit the deducted tax with the Government.
• File Form GSTR-7 for the month of May 2026.

The due date for filing Form GSTR-7 for May 2026 is 10 June 2026, in accordance with Rule 66 of the CGST Rules, 2017.

Important Compliance Points

• GSTR-7 is a monthly return filed by GST TDS deductors.
• Details of TDS deducted and deposited are reported deductee-wise.
• Upon successful filing of GSTR-7, Form GSTR-7A (TDS Certificate) is generated for the supplier.
• The deducted amount becomes available as credit in the supplier's electronic cash ledger.

Consequences of Non-Compliance

Failure to file GSTR-7 within the prescribed due date may attract:

• Late fee of ₹100 per day under CGST and ₹100 per day under SGST (total ₹200 per day), subject to the prescribed maximum limit.
• Interest at 18% per annum on delayed payment of TDS.

Conclusion

Timely deduction, deposit, and reporting of GST TDS are essential to avoid penalties and ensure seamless credit flow to suppliers. Deductors should reconcile payment records and verify contract thresholds before filing Form GSTR-7 for May 2026.

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