Budget 2026: Industry Calls for End to TDS/TCS on GST Transactions

• Industry bodies urge Budget 2026 to eliminate Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) on transactions already covered by Goods and Services Tax (GST).
• They argue that the parallel levy system is redundant, costly, and leads to compliance errors, especially given GST's real-time reporting capabilities.
• GST provides a pan-India, invoice-level, real-time reporting system, offering tax authorities a live audit trail of business-to-business transactions.
• TDS/TCS were designed for a fragmented tax system, but now create duplication and increase compliance costs for companies dealing with numerous vendors.
• Eliminating TDS/TCS on GST-covered transactions would simplify compliance, reduce disputes, and free up working capital without weakening tax enforcement.

Why It Matters: Businesses advocate for removing TDS/TCS on GST transactions to simplify compliance and reduce duplication.