Section 51, Central Goods and Services Tax Act, 2017 [S10-7QN]
As at 6 September 2026. In force from 1 July 2017 by Notification No. 9/2017-Central Tax, dated 28-6-2017 [N10-27X].
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.
(3) A certificate of tax deduction at source shall be issued in such form and in such manner as may be prescribed..
(4) ****
(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 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.
Defined terms in this text (15)
act: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): (2) "act", used with reference to an offence or a civil wrong, shall include a series of acts, and words which refer to acts done extend also to illegal omissions;
act: 363 more definitions.
Central Government: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): (8) "Central Government" shall,(a)in relation to anything done before the commencement of the Constitution, mean the Governor-General or the Governor-General in Council, as the case may be; and shall include,(i)in relation to functions entrusted under sub-section (1) of section 124 of the Government of India Act, 1935, to the Government of a Province, the Provincial Government acting within the scope of the authority given to it under that sub-section; and(ii)in relation to the administration of a Chief Commissioners Province, the Chief Commissioner acting within the scope of the authority given to him under sub-section (3) of section 94 of the said Act; and(b)in relation to anything done or to be done after the commencement of the Constitution, mean the President; and shall include,(i)in relation to functions entrusted under clause (1) of article 258 of the Constitution, to the Government of a State, the State Government acting within the scope of the authority given to it under that clause; * The word "and" omitted by the Adaptation of Laws(No.1) Order, 1956.(ii)in relation to the administration of a Part C State before the commencement of the Constitution (Seventh Amendment) Act, 1956, the Chief Commissioner or the Lieutenant-Governor or the Government of a neighbouring State or other authority acting within the scope of the authority given to him or it under article 239 or article 243 of the Constitution, as the case may be;]and(iii)in relation to the administration of a Union territory, the administrator thereof acting within the scope of the authority given to him under article 239 of the Constitution;
goods: Section 2, Central Goods and Services Tax Act, 2017 [S1061R] (In this Act, unless the context otherwise requires): "goods" means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply
goods: 38 more definitions.
Government: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): (23) "Government" or the Government shall include both the Central Government and any State Government;
local authority: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): (31) "local authority" shall mean a municipal committee, district board, body of port commissioners or other authority legally entitled to, or entrusted by the Government with, the control or management of a municipal or local fund;
local authority: 1 more definition.
month: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): "month" shall mean a month reckoned according to the British calendar
person: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): "person" shall include any company or association or body of individuals, whether incorporated or not
person: 1 more definition.
recipient: Section 2(93), Central Goods and Services Tax Act, 2017: "recipient" of supply of goods or services or both, means— (a) where a consideration is payable for the supply of goods or services or both, the person who is liable to pay that consideration; (b) where no consideration is payable for the supply of goods, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is given or made available; and (c) where no consideration is payable for the supply of a service, the person to whom the service is rendered, and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied;
section: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): (54) "section" shall mean a section of the Act or Regulation in which the word occurs;
section: 363 more definitions.
State: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): (58) "State"(a)as respects any period before the commencement of the Constitution (Seventh Amendment) Act, 1956, shall mean a Part A State, a Part B State or a Part C State; and(b)as respects any period after such commencement, shall mean a State specified in the First Schedule to the Constitution and shall include a Union territory;](59)State Act shall mean an Act passed by the Legislature of a State established or continued by the Constitution;
State Government: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): (60) "State Government",(a)as respects anything done before the commencement 26th January, 1950. of the Constitution, shall mean, in a Part A State, the Provincial Government of the corresponding Province, in a Part B State, the authority or person authorised at the relevant date to exercise executive Government in the corresponding Acceding State, and in a Part C State, the Central Government, * The word "and" omitted by the Adaptation of Laws (No.1) Order, 1956.;(b)as respects anything done [after the commencement of the Constitution and before the commencement of the Constitution (Seventh Amendment) Act, 1956], shall mean, in a Part A State, the Governor, in a Part B State, the Rajpramukh, and in a Part C State, the Central Government;(c)[ as respects anything done or to be done after the commencement of the Constitution (Seventh Amendment) Act, 1956, shall mean, in a State, the Governor, and in a Union territory, the Central Government; and shall, in relation to functions entrusted under article 258-A of the Constitution to the Government of India, include the Central Government acting within the scope of the authority given to it under that article] ;
sub-section: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): (61) "sub-section" shall mean a sub-section of the section in which the word occurs;
supplier: Section 2(105), Central Goods and Services Tax Act, 2017: "supplier" in relation to any goods or services or both, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied; Provided that a person who organises or arranges, directly or indirectly, supply of specified actionable claims, including a person who owns, operates or manages digital or electronic platform for such supply, shall be deemed to be a supplier of such actionable claims, whether such actionable claims are supplied by him or through him and whether consideration in money or money's worth, including virtual digital assets, for supply of such actionable claims is paid or conveyed to him or through him or placed at his disposal in any manner, and all the provisions of this Act shall apply to such supplier of specified actionable claims, as if he is the supplier liable to pay the tax in relation to the supply of such actionable claims.
supply: Section 7(1), Central Goods and Services Tax Act, 2017: "For the purposes of this Act, the expression - "supply" includes- (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; (aa) the activities or transactions, by a person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable consideration. Explanation.-For the purposes of this clause, it is hereby clarified that, notwithstanding anything contained in any other law for the time being in force or any judgment, decree or order of any Court, tribunal or authority, the person and its members or constituents shall be deemed to be two separate persons and the supply of activities or transactions inter se shall be deemed to take place from one such person to another; (b) import of services for a consideration whether or not in the course or furtherance of business; and (c) the activities specified in Schedule I, made or agreed to be made without a consideration."
value: Section 2(41), Customs Act, 1962: "value", in relation to any goods, means the value thereof determined in accordance with the provisions of sub-section (1) or sub-section (2) of section 14;
Made under this section, or naming it (27)
Notification No. 61/2018-Central Tax [N10-DM7], 5 November 2018, in force. Recital: "In exercise of the powers conferred by sub-section (3) of section 1, read with section 51 of the Central Goods and Services Tax Act, 2017 (12 of 2017), hereafter in this notification referred to as the said Act, the Central Government, on the recommendations of the Council"
Circular No. 198/10/2023-GST [C10-6QT], 17 July 2023, in force. The text contains "section 51 of the Central Goods and Services Tax Act, 2017".
Notification No. 05/2025-CENTRAL TAX [N11-4Q8], 10 January 2025, in force. The text contains "section 51 of the said Act".
Notification No. 8/2019-Central Tax [N10-FJ3], 8 February 2019, in force. The text contains "section 51 of the said Act".
Notification No. 13/2023-CENTRAL TAX [N10-ZKB], 24 May 2023, in force. The text contains "section 51 of the said Act".
Notification No. 18/2019-Central Tax [N10-GNY], 10 April 2019, in force. The text contains "section 51 of the said Act".
Notification No. 20/2020-Central Tax [N10-NG0], 23 March 2020, in force. The text contains "section 51 of the said Act".
Notification No. 22/2021-Central Tax [N10-SDA], 1 June 2021, in force. The text contains "section 51 of the said Act".
Notification No. 23/2024-Central Tax [N11-3RA], 8 October 2024, in force. The text contains "section 51 of the said Act".
Notification No. 25/2024-Central Tax [N11-49H], 9 October 2024, in force. The text contains "sub-section (1) of Section 51 of the said Act".
Notification No. 26/2019-Central Tax [N10-H1Q], 28 June 2019, in force. The text contains "section 51 of the said Act".
Notification No. 33/2017-Central Tax [N10-4SW], 15 September 2017, in force. The text contains "sub-section (1) of section 51 of the said Act".
Notification No. 40/2019-Central Tax [N10-HZE], 31 August 2019, in force. The text contains "section 51 of the said Act".
Notification No. 48/2019-Central Tax [N10-KD7], 9 October 2019, in force. The text contains "section 51 of the said Act".
Notification No. 50/2018-Central Tax [N10-D0A], 13 September 2018, in force. The text contains "sub-section (1) of section 51 of the said Act".
Notification No. 55/2019-Central Tax [N10-KMG], 14 November 2019, in force. The text contains "section 51 of the said Act".
Notification No. 57/2018-Central Tax [N10-DGF], 23 October 2018, in force. The text contains "section 51 of the Central Goods and Services Tax Act, 2017".
Notification No. 59/2019-Central Tax [N10-KVE], 26 November 2019, in force. The text contains "section 51 of the said Act".
Notification No. 65/2019-Central Tax [N10-M13], 12 December 2019, in force. The text contains "section 51 of the said Act".
Notification No. 66/2018-Central Tax [N10-DVS], 29 November 2018, in force. The text contains "section 51 of the said Act".
Notification No. 73/2018-Central Tax [N10-ERK], 31 December 2018, in force. The text contains "section 51 of the Central Goods and Services Tax Act, 2017".
Notification No. 78/2019-Central Tax [N10-MEX], 26 December 2019, in force. The text contains "section 51 of the said Act".
Notification No. 9/2017-Central Tax (Rate) [N10-283], 28 June 2017, in force. The text contains "section 51 of the said Act".
Notification No. 29/2018-Central Tax (Rate) [N10-EAJ], 31 December 2018, in force. The text contains "section 51 of the said Act".
Notification No. 30/2018-Integrated Tax (Rate) [N10-EET], 31 December 2018, in force. The text contains "section 51 of the said Act".
Cited by (12)
Section 122, Central Goods and Services Tax Act, 2017 [S10-A39], 12 April 2017, Band A. "section 51".
Section 142, Central Goods and Services Tax Act, 2017 [S10-ATY], 12 April 2017, Band A. "section 51".
Section 24, Central Goods and Services Tax Act, 2017 [S10-6RF], 12 April 2017, Band A. "section 51".
Section 25, Central Goods and Services Tax Act, 2017 [S10-6SD], 12 April 2017, Band A. "section 51".
Section 37, Central Goods and Services Tax Act, 2017 [S10-76J], 12 April 2017, Band A. "section 51".
Section 39, Central Goods and Services Tax Act, 2017 [S10-78E], 12 April 2017, Band A. "section 51".
Section 44, Central Goods and Services Tax Act, 2017 [S10-7E2], 12 April 2017, Band A. "section 51".
Rule 12, Central Goods and Services Tax Rules, 2017 [S10-D6Z], 19 June 2017, Band A. "section 51".
Rule 61, Central Goods and Services Tax Rules, 2017 [S10-F5H], 19 June 2017, Band A. "section 51".
Rule 66, Central Goods and Services Tax Rules, 2017 [S10-FBD], 19 June 2017, Band A. "section 51".
Rule 80, Central Goods and Services Tax Rules, 2017 [S10-FTA], 19 June 2017, Band A. "section 51".
Rule 85, Central Goods and Services Tax Rules, 2017 [S10-G1A], 19 June 2017, Band A. "section 51".
Not held (0)
none
Duties published under this section (1)
D12-2HK. Every department or establishment of the Central Government or State Government, local authority, Governmental agency and notified person: Deduct tax at the rate of one per cent from the payment made to the supplier where the total value of supply under a contract exceeds two lakh and fifty thousand rupees; Deducted amount paid within ten days after the end of the month of deduction; Form GSTR-7. Published by GST Policy Wing, Central Board of Indirect Taxes and Customs (synthetic record).