Ques: As per Section 51 of GST Act, Deduct shall 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 fifty1061 thousand rupees.
GST TDS is applicable to payments made or credited to the supplier; however, unlike Income Tax TDS, the phrase “whichever is earlier” is not mentioned here.

Hence, kindly clarify the following:
1. Whether GST TDS is applicable on due or payment whichever is earlier basis or payment basis like income tax TDS.
2. Whether GST TDS is applicable on “creation of provision for the expenses against the party” at the end of the financial year.
3. When to deduct GST TDS, on payable or payment basis, whichever is earlier or payment basis.

Ans: There is no clarity on time of supply for deduction of TDS. On a conservative side, you can deduct TDS on booking or payment, whichever is earlier basis. TDS is not applicable in provisions.

Also, there is sufficient ground to argue TDS deduction at the time of making payment.

Ques: GSTR 7 for the month of December was filed on 23/01/25, but the GSTR 7A form[Tax Deduction at source certificate] has not yet been generated.

Ans: Request you to please raise a ticket on the GST portal.

Ques: How to reply against notice u/s. 86b of GST 

Ans: One has to understand the issue raised in that to guide. Pls share issues raised in notice