A GST registered person given building to bank on rent monthly rent is Rs. 45000.00 per month . At the time of payment the bank deduct 2% TCS under GST. My Question is 1- Deduction of TCS by bank on rental payment is right or wrong Pl Clear with section under GST

Reply— As per section 52 of CGST Act, every electronic commerce operator shall collect an amount calculated at such rate not exceeding one per cent., as may be notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator.

the expression “net value of taxable supplies” shall mean the aggregate value of taxable supplies of goods or services or both.

There is no provision under GST which enables a tenant (bank) to deduct TCS, it is totally wrong. 

However as per provision of section 51 of CGST Act, TDS is to be deducted by Government authorities or such persons or category of persons as may be notified by the Government at the rate of 2 percent on payments made to the supplier of taxable goods and/or services, where the total Value of such supply, under an individual contract, exceeds two lakh fifty thousand rupees.

Persons who are required to deduct TDS under GST

1. A department or establishment of the Central Government or State Government; or-Sec-51(1)(a)
2. Local authority; or- Sec-51(1)(b)
3. Governmental agencies;- Sec-51(1)(c)
4. Such persons or category of persons as may be notified by the Government- Sec-51(1)(d)- Notification No -50/2018

a. An authority or a board or any other body, -

• set up by an Act of Parliament or a State Legislature; or
• established by any Government,

with fifty-one percent or more participation by way of equity or control, to carry out any function;

b. Society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860);

c. Public sector undertakings.

Therefore, if bank falls under any of the above category, TDS is required to be deducted. value of supply is more than Rs. 5,40,000/- (45,000x12).