As per the provisions of the GST Law, the following persons are mandatorily required to deduct TDS :-
- a department or establishment of the Central/ State Government; or
- local authority; or
- Governmental agencies; or
- such persons or category of persons as may be notified by the Government on the recommendations of the Council.
The following class of persons under clause (d) of section 51(1) of the CGST Act, 2017 has been notified vide notification No. 33/2017 – Central Tax dated 15.09.2017 :-
(a) an authority or a board or any other body,—
- set up by an Act of Parliament or a State Legislature; or
- established by any Government, with fifty-one percent or more participation by way of equity or control, to carry out any function;
(b) society established by the Central/ State Government or a Local Authority under the Societies Registration Act,1860;
(c) public sector undertakings.
Section 2(69): “ local authority” means ––
- “Panchayat” as defined in clause (d) of article 243 of the Constitution;
- “Municipality” as defined in clause (e) of article 243P of the Constitution;
- Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund;
- Cantonment Board as defined in section 3 of the Cantonments Act, 2006;
- Regional Council or a District Council constituted under the Sixth Schedule to the Constitution;
- Development Board constituted under article 371 of the Constitution; or
- Regional Council constituted under article 371A of the Constitution.