Is TDS deducted on the GST component of an invoice?
Category
Rates & sections
Answered by
A CA firm
Bottom line
No — where GST is shown separately on the invoice, TDS is deducted only on the value excluding GST.Where the GST component is indicated separately in the invoice or contract, TDS is to be deducted on the amount excluding GST (CBDT Circular 23/2017, applied across TDS sections). For example, on professional fees of ₹1,00,000 plus ₹18,000 GST, deduct 194J TDS on ₹1,00,000 only.
If the invoice shows a single consolidated amount without separately disclosing GST, TDS is deducted on the whole amount — so always insist suppliers show GST separately.
General information for FY 2026-27 under the Income-tax Act 2025, not advice on your specific case. Verify against the latest law or ask a CA before acting.