## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/in/books/help/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 Books 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_.
*   Navigate to **GST TDS Settings**.
*   Slide the **Enable GST TDS** toggle.

![Enable GST TDS](/in/books/help/images/settings/enable-gst-tds.png)

*   Select for whom you want to configure GST TDS in the _Enable GST TDS For_ field. You can choose Customers, Vendors, or both.
*   Click **Save**.

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

* * *

## Create Customers or Vendors

To create a customers and enable GST TDS:

*   Go to _Sales_ on the left sidebar and select **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?**
    
    ![GST TDS](/in/books/help/images/settings/apply-gst-tds-customer.png)

**Note:** If you select _Tax Deductor_ as the GST Treatment for the customer, the **Is GST TDS applicable?** option will be enabled by default. Please note that this applies only during customer creation, and not for vendors.

*   Click **Save**.

Similarly, you can create vendors and enable GST TDS for them in the vendor creation page.

* * *

## Create Transactions

You can create invoices and bills and deduct GST TDS on them. Let’s see how you can create an invoice and deduct GST TDS:

*   Go to _Sales_ on the left sidebar and select **Invoices**.
*   Click **\+ New** in the top-right corner of the page.
*   In the _New Invoice_ page, enter all the required details.
*   Click **Select a GST TDS** above the _Items_ table and select a GST TDS tax from the dropdown.

![GST TDS](/in/books/help/images/settings/apply-gst-tds.png)

**Note:** The **Select a GST TDS** dropdown will be displayed only when GST TDS is enabled for the customer or vendor.

*   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. From the dropdown, select **Show Additional Information** and uncheck the **Deduct GST TDS** option.

![GST TDS](/in/books/help/images/settings/deduct-gst-tds.png)

**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 TD**S 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**.

Similarly, you can create bills for your vendors, and deduct GST TDS.

**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 invoices and bills, you can record the GST TDS deducted from the transaction. Let’s see how you can do this in an invoice:

*   Go to _Sales_ on the left sidebar and select **Invoices**.
*   Click _Record Payment_ at the top of the invoice’s _Details_ page, and 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?**.

![Record GST TDS](/in/books/help/images/settings/record-gst-tds.png)

*   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**.

Similarly, you can record bill payments and the deducted GST TDS.

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

*   Go to _Sales_ on the left sidebar 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.
    
    ![Record GST TDS](/in/books/help/images/settings/record-gsttds-payments-received.png)
    *   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.

Similarly, you can record GST TDS for a bill payment through the Payments Made module.