CBDT vide circular no.23/2017 dated 19-7-2017 amending circular no. 1/2014, which states that wherever in terms of the agreement or contract between the payer and the payee, the Service Tax component comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source under Chapter XVIl-B of the income tax Act, 1961 (the Act) on the amount paid or payable without including such Service Tax
component.
In the circular no. 23/2017, the words service tax is substituted by GST. It is also mentioned that GST includes CGST, SGST & IGST. The same will be applicable only in case GST is mentioned separately in the invoice.
To see the notification please click the link below:
Karthik & Sunil 