Industry wants TDS/TCS gone from GST deals
Industry groups and Deloitte India are asking the government to drop Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) on GST transactions in Budget 2026.
They believe this move would cut red tape, reduce tax disputes, and let businesses keep more cash on hand.
Right now, TDS/TCS rates can range anywhere from 0.1% up to 30%, depending on the type of transaction.
Why should you care?
Having both TDS/TCS and GST rules means companies have to do double the paperwork—deducting taxes during payments, filing quarterly returns, and issuing certificates—all while still handling GST compliance.
This overlap especially hits tech and consulting firms hard, where they pay an 18% GST plus extra TDS.
Running two tax systems side-by-side often leads to mistakes, refund delays, or even legal trouble—even when everyone's paid what they owe.
The industry says using real-time GST data could make things simpler for everyone involved.