Under Section 51 of the CGST Act, above what contract value is a notified government deductor ordinarily required to deduct GST at source, assuming other conditions are met?
Question and options
Under Section 51 of the CGST Act, above what contract value is a notified government deductor ordinarily required to deduct GST at source, assuming other conditions are met?
₹5 lakh exclusive of tax
₹10 lakh inclusive of tax
₹2.5 lakh exclusive of tax
₹2.5 lakh inclusive of tax
Answer and explanation
Correct answer: C - ₹2.5 lakh exclusive of tax
Under section 51(1) of the CGST Act, a notified deductor deducts tax at source where the total value of supply under a contract exceeds ₹2,50,000, and the explanation excludes central, State, Union territory and integrated tax and cess shown in the invoice from that value. A figure inclusive of tax is therefore not the test.
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