## Zoho Billing - Product, solutions, integrations, support, and resources Index

Access the complete documentation index at:
https://www.zoho.com/in/billing/llms.txt

Use this file to discover all available documentation pages before proceeding.

# GST TDS

**GST TDS (Tax Deducted at Source under Goods and Services Tax)** is a provision under Indian GST law where the recipient of goods or services must deduct a specified percentage from the payment to the supplier and remit it to the tax department. GST TDS is applicable only when the total value of such supply, under an individual contract, exceeds ₹2.5 lakh. The GST TDS rate is 2% (1% CGST + 1% SGST for intra-state transactions and 2% IGST for inter-state transactions).

**Scenario:** A government department contracts a supplier for services worth ₹2,50,000. As per GST TDS rules, 2% is deducted, amounting to ₹5,000. The supplier receives ₹2,45,000. This can be recorded in Zoho Billing by creating a transaction with a payment of ₹2,45,000 and applying ₹5,000 as GST TDS.

## Enable GST TDS

Before deducting GST TDS from your transactions, you need to enable it. Here’s how:

*   Go to _Settings_.
*   Select **Taxes** under _Taxes and Compliance_ in the _Organization Settings_ pane.
*   In the _Taxes_ pane, select **GST TDS Settings**.
*   Slide the **Enable GST TDS** toggle.
*   Click **Save**.

The GST TDS taxes will now be automatically populated in your organisation.

* * *

## Apply GST TDS to Customers

Here’s how to create a customer and enable GST TDS:

*   Go to **Customers**.
*   Click **\+ New** in the top-right corner of the page.
*   Enter the required details in the _New Customer_ page.
*   In the _Other Details_ section:
    *   Select the _GST Treatment_ of the customer.
    *   Check the option **Is GST TDS applicable?**

**Note:** If you select _Tax Deductor_ as the GST Treatment for the customer, the **Is GST TDS applicable?** option will be enabled by default.

*   Click **Save**.

* * *

## Apply GST TDS to Transactions

You can create invoices and deduct GST TDS on them. Here’s how:

*   Go to _Sales_ and select **Invoices**.
    
*   Click **\+ New** in the top-right corner of the page.
    
*   In the _New Invoice_ page, enter all the required details.
    
*   Click the **Select a GST TDS** dropdown above the _Items_ table and select a GST TDS tax.
    
    **Note:** The **Select a GST TDS** dropdown will be displayed only when GST TDS is enabled for the customer.
    

GST TDS will be applied to all the line-items in your transaction.

To remove GST TDS from a specific line-item:

*   Click **More** next to the item’s _Amount_ field and select **Show Additional Information**.
    
*   Uncheck **Deduct GST TDS**.
    
    **Pro tip:** If you have many line items with GST TDS applied by default, but you only want it applied to specific line items, manually unchecking each one can be time-consuming. To apply GST TDS to only specific items, click **Bulk Actions** at the top right of the item table and select **Bulk Update Line Items**. Then choose **Remove GST TDS** to clear it from all line items, and manually select **Deduct GST TDS** for the specific ones you want.
    
*   You can view the total GST TDS deducted for the transaction in the _GST TDS_ section.
    
*   Click **Save**.
    
    **Note:** The GST TDS deduction will not be applied to the total invoice amount and will not impact any accounts directly. It can only be recorded at the time of payment.
    

* * *

## Record Payment

While recording a payment for your invoice, you can record the GST TDS deducted from the invoice. Here’s how:

*   Go to _Sales_ and select **Invoices**.
*   Click _Record Payment_ at the top of the invoice’s details page.
*   Select **Record Payment** from the dropdown.
*   Enter all the required details in the new page.
*   Check the option **Yes** next to the **GST TDS Deducted?**.
*   You can view the deducted GST TDS in the **GST TDS Amount** field.

**Note:** If you wish to record payment only for the deducted GST TDS, enter 0 in the **Amount Received (INR)** field.

*   Click **Record Payment**.

You also have the option to record GST TDS for an invoice payment through the _Payments Received_ module. Here’s how:

*   Go to _Payments_ and select **Payments Received**.
*   Click **\+ New**.
*   Enter the required details.
*   In the _Unpaid Invoices_ table:
    *   Click **Add GST TDS** below the GST TDS field for the invoice where you want to apply the GST TDS.
    *   You can click **Clear GST TDS** to clear the GST TDS applied to the invoice.
*   Click **Save as Paid**.

**Note:** If you want to record only the GST TDS and not the invoice payment amount, enter **0** in the _Amount Received_ field.

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