ANALYSIS OF SECTION 51 OF THE CGST ACT AND ITS ECONOMIC IMPLICATIONS ON BIHAR

Section 51 of the Goods and Services Tax (GST) Act introduces the concept of Tax Deducted at Source (TDS), requiring certain government departments, public sector undertakings (PSUs), and other specified entities to deduct a portion of tax when making payments for goods and services. The objective is to streamline tax collection, reduce tax evasion, and ensure timely tax remittance to the government. This provision directly affects businesses, particularly contractors and service providers, by reducing their cash flow due to the upfront tax deduction. In the context of Bihar, Section 51 has significant economic implications.