The dealer is the railway works contractor. He is receiving the contract amount from Railway department by deducting income tax @2%and GST@2%. Whether the dealer can declare his taxable turnover by deducting Income Tax TDS and GST TDS from the gross turnover amount.

Reply: Taxable turnover is no where defined in GST law. As per section 2(6) “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess.

Therefore, TDS under GST/Income tax will not be deducted while calculating aggregate turnover.