The person making a payment shall deduct TDS where total value of supply of goods or services or both is more than 2.5 lakhs for a particular transaction or contract. For multiple contracts, the payments for each shall be considered separately while determining the total value of supplies. The deductor is bound to deduct tax irrespective of whether the supplier is registered under GST or not.
The limit of Rs 2.5 lakhs is calculated excluding the value of taxes (CGST, SGST/UTGST, IGST).
Deduction shall be made @2% (1% CGST + 1% SGST/UTGST or 2% IGST)
It will apply to all net value of taxable supplies made through an e-commerce operator by other suppliers where the consideration with respect to such supplies is to be collected by the operator.
Tax will be collected @1% (.5% CGST + .5% SGST/UTGST or 1% IGST)