This circular provides a modification to the earlier guidelines issued for deduction and deposit of tax deducted at source (TDS) under GST by Drawing and Disbursing Officers (DDOs).

It refers to Circular No. 65/39/2018-DOR dated 14.09.2018, which laid down the procedure for GST–TDS deduction and accounting by DDOs. Based on the recommendation of the Controller General of Accounts, the present circular revises the accounting mechanism to facilitate proper booking of GST–TDS amounts that are deposited in a consolidated or “bunched” manner.

Specifically, the circular amends paragraph 9(iv) of the earlier guidelines to provide that a dedicated sub-head has been opened under the major head 8658 – PAO Suspense for accounting of GST–TDS. The newly created sub-head 8658-00-101 – 08 GST TDS is to be used by DDOs and Pay and Accounts Offices for recording GST–TDS transactions under Option II (bunched accounting). The corresponding reduced accounting code and SCCD code are also notified to ensure uniform accounting treatment.

The clarification is intended to streamline the accounting process, avoid reconciliation issues, and ensure correct classification of GST–TDS amounts deducted and deposited by Government departments.