New to GST and not sure which registration type applies to you? Start with our GST registration guide.
GST TDS and TCS, explained
GST TDS under section 51 applies to a listed set of deductors: departments and establishments of the Central or State Government, local authorities, governmental agencies, and persons notified by the Government, which since 10 October 2024 includes any registered person receiving metal scrap of Chapters 72 to 81 of the First Schedule to the Customs Tariff Act, 1975, from another registered person. TDS is 2% of the value of supply, and it bites only where the total value of the supply under a contract, excluding GST and cess shown on the invoice, exceeds ₹2,50,000.
GST TCS under section 52 applies to an e-commerce operator that collects the consideration for supplies made through it, at 0.5% of the net value of those supplies. Each takes its own registration in Form GST REG-07 and files its own monthly return.
Who must deduct GST TDS under section 51?
Section 51 lists the persons who must deduct. It is not every buyer, and it is no longer only governments.
- A department or establishment of the Central Government or a State Government.
- A local authority.
- A governmental agency.
- Persons or categories of persons notified by the Government. Two groups matter here:
- notified public sector undertakings, authorities, boards and bodies set up by an Act of Parliament or a State legislature or by a government, with 51% or more government participation, and government-established societies;
- since 10 October 2024, any registered person receiving supplies of metal scrap falling under Chapters 72 to 81 of the First Schedule to the Customs Tariff Act, 1975, from another registered person. This is the change most businesses have missed. A registered foundry, rolling mill, trader or fabricator buying scrap from a registered supplier is a GST TDS deductor, has to take a REG-07 registration and has to file GSTR-7.
If you are in the metal, casting, recycling or fabrication trade and buy scrap from registered suppliers, assume you are in scope and check, rather than the other way round.
What TDS applies to, and what it does not
TDS is 2% of the value of supply: 1% CGST plus 1% SGST for an intra-state supply, or 2% IGST for an inter-state one.
| Point | Position |
|---|---|
| Rate | 2% of the value of supply |
| Threshold | Only where the total value of the supply under a contract exceeds ₹2,50,000 |
| What is excluded from that value | CGST, SGST, IGST, UTGST and cess shown on the invoice |
| Base for the 2% | The taxable value, not the tax-inclusive amount |
| Tested on | The contract, not the individual invoice or payment |
| Exempt and nil-rated supplies | No TDS, because there is no taxable supply |
Because the test is the contract, splitting one contract into small invoices does not take you outside section 51. Where you are unsure whether a series of purchase orders is one contract, take a view in writing before the first payment rather than after a notice.
The registration process
- Confirm the class. A listed section 51 deductor, a registered buyer of metal scrap notified from 10 October 2024, or a section 52 collector. The application is Form REG-07 in every case, but the tax, the return and the certificate differ.
- File Form REG-07. The application carries the signatory or Drawing and Disbursing Officer details and the jurisdiction. A government deductor without a PAN can be registered on the strength of its TAN.
- Registration granted in Form GST REG-06 as a deductor or collector, with portal access set up.
- Set the rhythm. A calendar for the 10th of each month, the challan route for depositing the tax within 10 days of the month end, and how the GSTR-7A certificates reach your suppliers.
We check every scan for name, address and signature mismatches before the application goes in.
Documents you will need
- Entity PAN, or TAN for a government deductor without a PAN
- Certificate of incorporation, registration order or the notification constituting the body
- PAN and Aadhaar of the authorised signatory or the Drawing and Disbursing Officer
- Board resolution, office order or authorisation appointing that person
- Office address proof for each state applied for
- Bank account proof
- A sample purchase contract or invoice, where the metal-scrap notification is in question
GST TDS and TCS registration fee
Our professional fee is ₹1,499 for a GST TDS or TCS registration in Form REG-07. There is no government fee.
| Item | Amount |
|---|---|
| Regikart professional fee, GST TDS or TCS registration (Form GST REG-07) | ₹1,499 |
| Government fee for Form GST REG-07 | No government fee |
| Additional states | On quote |
Professional fees exclude GST at 18%. Government fees, where they apply, are paid at actuals to the department and are shown separately. Fees verified on 22 September 2026.
Interest and late fees are separate and are paid to the government. Tax deducted and not paid in time carries interest at 18% a year under section 50(1). A late GSTR-7 carries a late fee of ₹200 a day, being ₹100 under the CGST Act and ₹100 under the SGST Act, subject to the ceiling in section 47. From the October 2024 return period, no late fee is computed on a delayed nil GSTR-7.
What is included: the class check under section 51 or section 52, Form REG-07 with the signatory or DDO details, the REG-06 certificate, a deposit-and-return calendar, and a written note on how the GSTR-7A certificates reach your suppliers.
Forms, dates and certificates
| Form | What it is for | When |
|---|---|---|
| GST REG-07 | Application for registration as a person required to deduct tax at source under section 51 or to collect tax at source under section 52 | Before you begin deducting or collecting |
| GST REG-06 | Registration certificate issued on approval | On approval |
| Payment challan | Deposit of the tax deducted, to the credit of the Government | Within 10 days after the end of the month in which the deduction was made |
| GSTR-7 | Monthly, invoice-wise return of tax deducted at source | 10th of the following month |
| GSTR-7A | Certificate of tax deducted, generated on the portal after GSTR-7 is filed and made available to the supplier | After GSTR-7 is filed |
| GSTR-8 | Monthly return of an e-commerce operator collecting tax at source | 10th of the following month |
A nil GSTR-7 is not compulsory. Where you have deducted nothing in a month you may leave it, and from the October 2024 return period a delayed nil GSTR-7 carries no late fee. Every GST, income-tax and ROC date is in our compliance calendar.
How the credit reaches your supplier
The 2% you deduct is your supplier's money, held back and paid to the government on their behalf. The path matters because suppliers chase it.
- You deduct and deposit within 10 days of the month end.
- You file GSTR-7, invoice-wise, by the 10th.
- The portal generates Form GSTR-7A and makes it available to the supplier.
- The amount appears in the supplier's TDS and TCS credit received table.
- Once the supplier accepts it, the credit moves to their electronic cash ledger and is used to pay their own tax. A refund of the balance is possible, but using it is the normal route.
It does not appear in GSTR-2A or GSTR-2B: those are for input tax credit on purchases, which is a different thing entirely. If a supplier says the credit has not arrived, the usual causes are a wrong GSTIN in your GSTR-7, a return not yet filed, or a deduction recorded against the wrong month.
Section 52: the collector side, in short
If you run a platform through which other people supply and you collect the payment, you are a collector rather than a deductor.
- Rate: 0.5% of the net value of taxable supplies made through the platform by other suppliers, being 0.25% CGST plus 0.25% SGST or 0.5% IGST. It came down from 1% with effect from 10 July 2024.
- Registration: the same Form REG-07, in each state or union territory where you collect.
- Return: GSTR-8 by the 10th of the following month.
- Out of scope: your own supplies, and the notified services where you pay the tax yourself as the deemed supplier under section 9(5).
The full treatment, including the section 9(5) list and the seller-side registration rules, is on our e-commerce operator GST registration page.
GST TDS is not income-tax TDS
Two separate regimes, two separate registrations, two separate returns. Businesses routinely file one and assume the other is covered.
| Point | GST TDS (section 51, CGST Act) | Income-tax TDS (Income-tax Act) |
|---|---|---|
| Law | CGST Act, 2017 | Income-tax Act, 1961 for FY 2025-26 (AY 2026-27); Income-tax Act, 2025 for Tax Year 2026-27 onwards |
| Registration | Form GST REG-07, a separate GSTIN | TAN, applied for in Form 49B |
| Rate here | 2% of the value of supply | Depends on the section and the payment |
| Return | GSTR-7, monthly by the 10th | Quarterly statements such as 24Q and 26Q |
| Certificate | GSTR-7A on the GST portal | Form 16 or Form 16A on TRACES |
| Credit reaches | The supplier's electronic cash ledger | The deductee's Form 26AS and AIS |
A single payment can attract both. If you need the income-tax side, see TAN registration and TDS return filing.
Why Regikart for GST TDS and TCS registration
Regikart is a CA and CS firm serving 250+ clients from offices in Kolkata (head office), Delhi and Bengaluru. Every REG-07 application is reviewed by a Chartered Accountant.
- Class first. Section 51, the metal-scrap notification or section 52: the answer decides the tax, the return and the certificate.
- The October 2024 change built in. We check scrap purchases against Chapters 72 to 81 rather than assuming you are outside section 51 because you are not a government body.
- Fixed fee of ₹1,499, with no government fee to add.
- One team afterwards: GSTR-7 or GSTR-8 each month, your own GST returns, the books and any GST notice on a TDS mismatch.
Not sure whether you are a section 51 deductor at all? Tell us what your organisation is and what you buy, and a CA will confirm it. Metal scrap buyers are the class most often caught unawares.