Text
The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Act as published in the Gazette of India is the legal source.
Section 51, verbatim (show)
Section 51
*Section 51. Tax deduction at source.-
(1) Notwithstanding anything to the contrary contained in this Act, the Government may mandate,-
(a) a department or establishment of the Central Government or State Government; or
(b) local authority; or
(c) Governmental agencies; or
(d) such persons or category of persons as may be notified by the Government on the recommendations of the Council, (hereafter in this section referred to as "the deductor"), to 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 fifty thousand rupees:
Provided that no deduction shall be made if the location of the supplier and the place of supply is in a State or Union territory which is different from the State or as the case may be, Union territory of registration of the recipient.
Explanation .-For the purpose of deduction of tax specified above, the value of supply shall be taken as the amount excluding the central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice.
(2) The amount deducted as tax under this section shall be paid to the Government by the deductor within ten days after the end of the month in which such deduction is made, in such manner as may be prescribed.
1[(3) A certificate of tax deduction at source shall be issued in such form and in such manner as may be prescribed.].
(4) 2[****]
(5) The deductee shall claim credit, in his electronic cash ledger, of the tax deducted and reflected in the return of the deductor furnished under sub-section (3) of section 39, in such manner as may be prescribed.
(6) If any deductor fails to pay to the Government the amount deducted as tax under sub-section (1), he shall pay interest in accordance with the provisions of sub-section (1) of section 50, in addition to the amount of tax deducted.
(7) The determination of the amount in default under this section shall be made in the manner specified in section 73 or section 74 3[or section 74A].
(8) The refund to the deductor or the deductee arising on account of excess or erroneous deduction shall be dealt with in accordance with the provisions of section 54:
Provided that no refund to the deductor shall be granted, if the amount deducted has been credited to the electronic cash ledger of the deductee.
* Section 51(1) enforced w.e.f. 18-09-2017 with respect to persons special under (a), (b) and (d) of section 51(1). Provisions of sub-sections (2) to (8) of section 51 have not so far been brought into force.
1. Substituted by s. 124 of The Finance Act, 2020 (No. 12 of 2020) for -
"(3) The deductor shall furnish to the deductee a certificate mentioning therein the contract value, rate of deduction, amount deducted, amount paid to the Government and such other particulars in such manner as may be prescribed. "
-Brought into force w.e.f. 01st January, 2021 by Notification No. 92/2020-C.T., dated 22-12-2020.
2. Omitted by s. 124 by The Finance Act, 2020 (No. 12 of 2020) -
"(4) If any deductor fails to furnish to the deductee the certificate, after deducting the tax at source, within five days of crediting the amount so deducted to the Government, the deductor shall pay, by way of a late fee, a sum of one hundred rupees per day from the day after the expiry of such five days period until the failure is rectified, subject to a maximum amount of five thousand rupees. "
-Brought into force w.e.f. 01st January, 2021 vide Notification No. 92/2020-C.T., dated 22-12-2020.
3. Inserted by section 127 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.
Sub-section (1)
51(1)(a) to (d)Deduction mandate
Notwithstanding anything to the contrary contained in this Act, the Government may mandateSection 51(1)(a) to (d)
The overriding power covers Central or State departments or establishments, local authorities, governmental agencies and notified persons recommended by the Council. Deduction is one per cent. of payment or credit for taxable supplies where total contract value exceeds two lakh and fifty thousand rupees. The law does not settle how one contract or its total value is identified across time, amendments or separate orders.
Questions to answer on the file3 questions
51(1), proviso and ExplanationLocation exception and value
no deduction shall be made if the location of the supplier and the place of supply is in a State or Union territory which is differentSection 51(1), proviso and Explanation
The comparison is with the recipient's registration State or Union territory. The deduction base excludes central, State, Union territory and integrated tax and cess shown in the invoice.
Questions to answer on the fileThe payment on which deduction is required5 questions
Questions to answer on the fileThe proviso: where no deduction is to be made2 questions
51(2)Remittance
shall be paid to the Government by the deductor within ten days after the end of the month in which such deduction is madeSection 51(2)
The deduction month starts the month-end deadline. Remittance follows the prescribed manner.
Questions to answer on the file5 questions
51(3)Certificate
A certificate of tax deduction at source shall be issued in such form and in such manner as may be prescribed.Section 51(3)
Form and manner follow prescription. This wording replaced the earlier certificate provision from 1 January 2021.
Questions to answer on the file2 questions
51(5)Deductee cash credit
The deductee shall claim credit, in his electronic cash ledger, of the tax deducted and reflected in the return of the deductorSection 51(5)
The relevant return is under section 39(3). The claim follows the prescribed manner.
Questions to answer on the file3 questions
51(6)Non-remittance interest
he shall pay interest in accordance with the provisions of sub-section (1) of section 50, in addition to the amount of tax deducted.Section 51(6)
The trigger is failure to pay the deduction to the Government. Interest accompanies the amount deducted.
Questions to answer on the file3 questions
51(7)Determination
shall be made in the manner specified in section 73 or section 74 or section 74A.Section 51(7)
The named provisions determine the default amount. Footnote 3 gives no commencement date for the section 74A insertion.
Questions to answer on the file2 questions
51(8) and provisoRefund route
no refund to the deductor shall be granted, if the amount deducted has been credited to the electronic cash ledger of the deductee.Section 51(8) and proviso
Section 54 governs excess or erroneous deduction refunds to the deductor or deductee. The proviso bars a deductor refund once the stated cash credit has occurred.
Questions to answer on the file5 questions
Other questions to answer on the file
Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.
Scope the section as a whole
Questions to answer on the file1 question
Sub-section (4), omitted 51(4)
Questions to answer on the file1 question
Frequently asked questions
Does the deduction base include GST shown in the invoice?
No. The Explanation excludes the named GST taxes and cess shown in the invoice.
Section 51(1), Explanation
Where does the deductee claim the deduction?
In the electronic cash ledger, for deduction reflected in the deductor's section 39(3) return. The manner is prescribed.
Section 51(5)
How is one contract identified for the threshold?
The law does not settle the contract-identification and total-value questions for extended, amended or separately ordered supplies. The threshold applies to total supply value under a contract.
Section 51(1)
Amendment history
The CBIC text carries 4 footnotes. The table gives each in the source's own terms. Effective dates are as the footnotes state them.[1]
| Note | Change | Instrument | Effective from |
|---|---|---|---|
| Enforced sub-section (1) in respect of the persons under clauses (a), (b) and (d), and records that sub-sections (2) to (8) "have not so far been brought into force" | — | w.e.f. 18-09-2017 for sub-section (1) as stated; no date for sub-sections (2) to (8) | |
| 1 | Substituted the whole of sub-section (3). The source sets out the wording it replaced, which required the deductor to furnish the deductee a certificate mentioning the contract value, rate of deduction, amount deducted and amount paid to the Government | s. 124 of The Finance Act, 2020 (No. 12 of 2020)[2][3] | brought into force w.e.f. 01st January, 2021 by Notification No. 92/2020-C.T., dated 22-12-2020 |
| 2 | Omitted sub-section (4), which carried a late fee of one hundred rupees per day, subject to a maximum of five thousand rupees, for failing to furnish the certificate within five days. The source sets out the omitted wording in full | s. 124 of The Finance Act, 2020 (No. 12 of 2020)[2][3] | brought into force w.e.f. 01st January, 2021 vide Notification No. 92/2020-C.T., dated 22-12-2020 |
| 3 | Inserted the words "or section 74A" in sub-section (7) | section 127 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024[4] | the source gives only the date of the amending Act, 16.08.2024, and no commencement notification |
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 39 | 51(5) requires sub-section (3) of Section 39 | 51(5) "reflected in the return of the deductor furnished under sub-section (3) of section 39" |
| Section 50 | 51(6) requires sub-section (1) of Section 50 | 51(6) "he shall pay interest in accordance with the provisions of sub-section (1) of section 50" |
| Section 73, Section 74, Section 74A | 51(7) prescribed by Section 73, Section 74, Section 74A | 51(7) "shall be made in the manner specified in section 73 or section 74 3[or section 74A]" |
| Section 54 | 51(8) requires Section 54 | 51(8) "shall be dealt with in accordance with the provisions of section 54" |
| Section 20 of the IGST Act, 2017 | 51 deduction applied to integrated tax modified by Section 20 of the IGST Act, 2017 first proviso | IGST 20 first proviso "two per cent." |
Circulars and notifications
Circulars and notifications in the CBIC repository that cite this section, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.
Circulars (11)
| Number | Date | Subject |
|---|---|---|
| Circular No. 198/10/2023-GST | 17 July 2023 | Clarification on issue pertaining to e-invoice |
| Circular No. 166/22/2021-GST | 17 November 2021 | Circular on Clarification on refund related issues |
| Circular No. 153/09/2021-GST | 17 June 2021 | GST on milling of wheat into flour or paddy into rice for distribution by State Governments under PDS |
| Circular No. 137/07/2020-GST | 13 April 2020 | Circular clarifying issues in respect of challenges faced by registered persons in implementation of provisions of GST issued - Reg |
| Circular No. 136/06/2020-GST | 3 April 2020 | Clarification in respect of various measures announced by the Government for providing relief to the taxpayers in view of spread of Novel Corona Virus (COVID-19) - Reg |
| Circular No. 124/43/2019-GST | 18 November 2019 | Seeks to clarify optional filing of annual return under notification No. 47/2019-Central Tax dated 9th October, 2019. |
| Circular No. 125/44/2019-GST | 18 November 2019 | Seeks to clarify the fully electronic refund process through FORM GST RFD-01 and single disbursement. amended by a later instrument |
| Circular No. 76/50/2018-GST | 31 December 2018 | Clarification on certain issues (sale by government departments to unregistered person; leviability of penalty under section 73(11) of the CGST Act; rate of tax in case of debit notes / credit notes issued under section 142(2) of the CGST Act; applicability of notification No. 50/2018-Central Tax; valuation methodology in case of TCS under Income Tax Act and definition of owner of goods) related to GST |
| Circular No. 69/43/2018-GST | 26 October 2018 | Circular on Standard Operating Procedure for Processing of Applications for Cancellation of Registration submitted in FORM GST REG-16 |
| Circular No. 65/39/2018-GST | 14 September 2018 | Guidelines for Deductions and Deposits of TDS by the DDO under GST |
| Circular No. 45/19/2018-GST | 30 May 2018 | Clarification on refund related issues. Rescinded vide Circular No. 125/44/2019 - GST dated 18.11.2019. rescinded by a later instrument |
Notifications (32)
| Number | Date | Subject |
|---|---|---|
| Notification No. 05/2025-Central Tax | 10 January 2025 | Seeks to extend the due date for furnishing FORM GSTR-7 for the month of December, 2024 |
| Notification No. 25/2024-Central Tax | 9 October 2024 | Seeks to amend Notification No. 50/2018-Central Tax dated 13.09.2018 made under this section |
| Notification No. 23/2024-Central Tax | 8 October 2024 | Seeks to provide waiver of late fee for late filing of NIL FORM GSTR-7 |
| Notification No. 51/2023-Central Tax | 29 September 2023 | Seeks to make amendments (Third Amendment, 2023) to the CGST Rules, 2017 in supersession of Notification No. 45/2023 dated 06.09.2023 |
| Notification No. 13/2023-Central Tax | 24 May 2023 | Seeks to extend the due date for furnishing FORM GSTR-7 for April, 2023 for registered persons whose principal place of business is in the State of Manipur. |
| Notification No. 30/2021-Central Tax | 30 July 2021 | Seeks to amend Rule 80 of the CGST Rules, 2017 and notify Form GSTR 9 and 9C for FY 2020-21. Rule 80 provides for exemption from GSTR-9C to taxpayers having AATO upto Rs. 5 crores. |
| Notification No. 22/2021-Central Tax | 1 June 2021 | Seeks to rationalize late fee for delay in filing of return in FORM GSTR-7. superseded by a later instrument |
| Notification No. 82/2020-Central Tax | 10 November 2020 | Seeks to make the Thirteenth amendment (2020) to the CGST Rules, 2017. |
| Notification No. 20/2020-Central Tax | 23 March 2020 | Seeks to extend due date for furnishing FORM GSTR-7 for those taxpayers whose principal place of business is in the erstwhile State of Jammu and Kashmir for the July, 2019 to October, 2019 and November, 2019 to February, 2020. |
| Notification No. 78/2019-Central Tax | 26 December 2019 | Seeks to extend the due date for furnishing of return in FORM GSTR-7 for registered persons in Assam, Manipur or Tripura for the month of November, 2019. |
| Notification No. 65/2019-Central Tax | 12 December 2019 | Seeks to extend the due date for furnishing of return in FORM GSTR-7 for registered persons in Jammu and Kashmir for the months of July, 2019 to October, 2019. |
| Notification No. 59/2019-Central Tax | 26 November 2019 | Seeks to extend the due date for furnishing of return in FORM GSTR-7 for registered persons in Jammu and Kashmir for the months of July, 2019 to October, 2019. |
| Notification No. 55/2019-Central Tax | 14 November 2019 | Seeks to extend the due date for furnishing of return in FORM GSTR-7 for registered persons in Jammu and Kashmir for the months of July, 2019 to September, 2019. |
| Notification No. 48/2019-Central Tax | 9 October 2019 | Seeks to amend notification No. 41/2019-Central Tax, dated the 31st August, 2019. |
| Notification No. 40/2019-Central Tax | 31 August 2019 | Seeks to extend the last date in certain cases for furnishing GSTR-7 for the month of July, 2019. |
| Notification No. 33/2019-Central Tax | 18 July 2019 | Seeks to carry out changes in the CGST Rules, 2017. |
| Notification No. 26/2019-Central Tax | 28 June 2019 | Seeks to extend the due date of filing returns in FORM GSTR-7. amended by a later instrument |
| Notification No. 18/2019-Central Tax | 10 April 2019 | Seeks to extend the due date for furnishing FORM GSTR-7 for the month of March, 2019 from 10.04.2019 to 12.04.2019. |
| Notification No. 08/2019-Central Tax | 8 February 2019 | Seeks to extend the due date for furnishing of FORM GSTR-7 for the month of January, 2019 till 28.02.2019. |
| Notification No. 28/2018-Central Tax (Rate) | 31 December 2018 | Seeks to amend notification No. 12/2017- Central Tax (Rate) so as to exempt certain services as recommended by Goods and Services Tax Council in its 31st meeting held on 22.12.2018. |
| Notification No. 29/2018-Central Tax (Rate) | 31 December 2018 | Seeks to amend notification No. 13/2017- Central Tax (Rate) so as to specify services to be taxed under Reverse Charge Mechanism (RCM) as recommended by Goods and Services Tax Council in its 31st meeting held on 22.12.2018. |
| Notification No. 73/2018-Central Tax | 31 December 2018 | Seeks to exempt supplies made by Government Departments and PSUs to other Government Departments and vice-versa from TDS. made under this section |
| Notification No. 66/2018-Central Tax | 29 November 2018 | Seeks to extend the due date for filing of FORM GSTR-7 for the months of October, 2018 to December, 2018 amended by a later instrument |
| Notification No. 61/2018-Central Tax | 5 November 2018 | Seeks to exempt supply from PSU to PSU from applicability of provisions relating to TDS. made under this section |
| Notification No. 57/2018-Central Tax | 23 October 2018 | Seeks to exempt post audit authorities under MoD from TDS compliance. made under this section |
| Notification No. 50/2018-Central Tax | 13 September 2018 | Seeks to bring section 51 of the CGST Act (provisions related to TDS) into force w.e.f 01.10.2018. amended by a later instrument |
| Notification No. 21/2018-Central Tax | 18 April 2018 | Notification seeks to make amendments (Fourth Amendment) to the CGST Rules, 2017. |
| Notification No. 33/2017-Central Tax | 15 September 2017 | Notifying section 51 of the CGST Act, 2017 for TDS. |
| Notification No. 09/2017-Central Tax (Rate) | 28 June 2017 | Exempting supplies to a TDS deductor by a supplier, who is not registered, under section 11 (1) |
| Notification No. 10/2017-Central Tax | 28 June 2017 | Seeks to amend CGST Rules notification no 3/2017-Central Tax dt 19.06.2017 amended by a later instrument |
| Notification No. 09/2017-Union Territory Tax (Rate) | 28 June 2017 | Notification exempting supplies to a TDS deductor by a supplier, who is not registered, under section 8 (1) |
| Notification No. 03/2017-Central Tax | 19 June 2017 | Notifying the CGST Rules, 2017 on registration and composition levy amended by a later instrument |
Unsettled questions
The words of section 51 do not answer this question. Where one decides a matter on the file, the answer depends on the position taken on it.
- What is one contract for the threshold in sub-section (1), and how is the total value of the supply under it arrived at where the contract runs over time, is amended, or is placed as a series of separate orders? The sub-section fixes the figure and nowhere says how the contract is identified or the total built.
See also
- Section 39 of the CGST Act, 2017: furnishing of returns
- Section 50 of the CGST Act, 2017: interest on delayed payment of tax
- Section 54 of the CGST Act, 2017: refund of tax
- Section 73 of the CGST Act, 2017: determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any willful-misstatement or suppression of facts
- Section 74A of the CGST Act, 2017: determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to Financial Year 2024-25 onward
References
- Central Board of Indirect Taxes and Customs. "Section 51. Tax deduction at source". Central Goods and Services Tax Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 4. Retrieved 17 September 2026.
- The Finance Act, 2020. Cited in CBIC footnotes 1 and 2.
- Notification No. 92/2020-Central Tax, dated 22 December 2020: Seeks to bring into force Sections 119, 120, 121, 122, 123, 124, 126, 127 and 131 of Finance Act, 2020 (12 of 2020). Cited in CBIC footnotes 1 and 2.
- The Finance Act (No. 2) Act, 2024. Cited in CBIC footnote 3.
External links
- CGST Act, 2017, Section 51 on the CBIC tax information portal