The purpose of TDS deduction in GST is to ensure that the government receives tax revenue in a timely manner, and to promote compliance with GST regulations. By requiring certain businesses to deduct TDS on payments made to suppliers of goods and services, the government can reduce the risk of tax evasion and ensure that the suppliers are registered under GST.
TDS deduction is a way for the government to ensure that GST is being properly accounted for in transactions between businesses. When a business is required to deduct TDS, they must deduct a certain percentage of the payment made to the supplier and remit it to the government on behalf of the supplier.
This ensures that the supplier is paying their fair share of GST and that the government is receiving tax revenue in a timely manner.
Additionally, TDS deduction can help promote compliance with GST regulations by encouraging businesses to ensure that their suppliers are registered under GST. If a supplier is not registered under GST, the business making the payment may be required to deduct a higher rate of TDS, which can be a strong incentive for suppliers to register under GST.
Overall, the purpose of TDS deduction in GST is to ensure that the government receives tax revenue in a timely and efficient manner, and to promote compliance with GST regulations among businesses and their suppliers.
