Applicability of TDS: From 10th October 2024, a TDS of 2% is required to be deducted by the recipient (buyer) of goods, under GST, when purchasing metal scrap. Condition: The taxable value of the supply must exceed ₹2,50,000 per transaction. TDS Rate Breakdown: CGST = 1% SGST = 1% (for intra-state transactions) IGST = 2% (for inter-state transactions) TDS on Metal Scrap Purchases The new TDS rule specifically applies to the purchase of metal scrap. The TDS rate of 2% will be calculated on the taxable value of the metal scrap being purchased, not on the total invoice value (which includes GST). Important Note: TDS under this rule is only applicable to transactions where the taxable value exceeds ₹2,50,000 per transaction.