Is TDS deducted Including GST?

If you are a business owner or a salaried individual in India, you may have heard of TCS or Tax Collected at Source. It is a tax levied by the government on the collection of certain goods or services. With the implementation of the Goods and Services Tax (GST) in India, many people have been curious about whether TCS is deducted including GST. In this blog post, we will explore the answer to this question and provide some insights into the workings of TCS.

First, let's understand what TCS is. It is a tax collected by the seller or the service provider at the time of sale or service provided. The tax is collected from the buyer or the recipient and deposited with the government. The rate of TCS varies depending on the type of goods or services and can range from 0.1% to 5%. TCS is collected to ensure that the government receives tax revenue at the earliest point of sale or service provided.

Now, coming to the question of whether TCS is deducted including GST. The answer is yes, TCS is calculated on the inclusive amount of GST. This means that if the value of goods or services is INR 1000 and the GST rate is 18%, then the total value will be INR 1180. TCS will be collected on this amount, depending on the applicable rate.

It is important to note that TCS is not applicable on all goods or services. It is only applicable on certain items such as scrap, minerals, and motor vehicles. Additionally, TCS is not applicable on exports, as the government does not collect tax on goods or services sold outside the country.

In conclusion, TCS is deducted including GST. It is a tax collected by the seller or service provider at the time of sale or service provided. The rate of TCS varies depending on the type of goods or services and is calculated on the inclusive amount of GST. As a business owner or a salaried individual, it is important to understand the workings of TCS and comply with the relevant regulations to avoid any penalties.