"The concept of TDS was initially introduced in the Income Tax Act and TDS has now been introduced in GST as well. The purpose of introduction of TDS on GST is only to enable the government to have a trail of transactions and to monitor and verify the compliance.
It acts as a powerful instrument to prevent tax evasion and expands the tax net, as it provides for the creation of an audit trail.
Just like in the Income Tax Act, the person deducting the TDS is required to deposit the TDS with the Govt and issue Form 16 or Form 16A, similarly under GST Act as well, the person deducting the TDS would be required to deposit the same with the Government by the 10th of the next month and issue Form GSTR 7A to the person whose TDS has been deducted.
As per Notification No.50/2018- Central Tax , the Central Government hereby appoints the 1st day of October,2018, as the date on which the provisions of Section 51 of the said Act shall come into force .
To elaborate we have also explained briefly in a pictorial form and link of the same is given below: