FAQ’s on TDS in GST to be applicable from 1st Oct 2018
Who is required to deduct TDS in GST?
Following is the list of the person required to deducts the TDS in GST as notified by notification no. 50/2018- Central Tax. As per this notification, the provisions of this section will be applicable fromÂ
(a) a department or establishment of the Central Government or State Government; or
(b) local authority; or
(c) Governmental agencies; or
(d) such persons or category of persons as may be notified by the Government on the recommendations of the Council:
Following categories are notified via Notification No. 50/2018 – Central Tax dated 13th September 2018.
(a) an authority or a board or any other body, – (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with fifty-one percent. or more participation by way of equity or control, to carry out any function;
(b) The society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860);
(c) public sector undertakings.
When TDS will be deducted in GST:
TDS will be deducted when the amount of supply in a contract is more than Rs. 2,50,000.
On which amount TDS in GST will be deducted?
TDS in GST will be deducted on the amount of payment(Taxable value) made by the notified person.Â
For the purpose of deduction of tax specified above, the value of supply shall be taken as the amount excluding the central tax, State tax, Union territory tax, integrated tax, and cess indicated in the invoice.
When TDS in GST is required to be deposited to the account of government?
The TDS is required to be deposited on 10th of next month in which the amount is deducted.
When GST TDS is not required to be deducted?Â
As per the provisions of section 51 of CGST Act, no deduction of TDS shall be made if the location of the supplier and the place of supply is in a State or Union territory which is different from the State or as the case may be, Union territory of registration of the recipient. We have simplified it with the help of the following table.
|
Location of Supplier |
Place of Supply |
Location of Recipient |
TDS |
Tax |
|
Haryana |
Haryana |
Haryana |
Yes |
Haryana CGST Haryana GST |
|
Haryana |
Rajasthan |
Rajasthan |
Yes |
IGST |
|
Haryana |
Haryana |
Rajasthan |
Not Applicable |
Haryana CGST Haryana GST |
|
Haryana |
Punjab |
Rajasthan |
Applicable |
IGST |
|
Haryana |
Rajasthan |
Haryana |
Applicable |
IGST |
When the return of TDS in GST is required to be filed?
As per the provisions of section 39, the return of TDS is required to be filed by the 10th of next month.
In which form the return for TDS in GST will be filed?
The return of GST will be filed in FORM GSTR -7.
In which form the certificate for TDS in GST will be issued.
The certificate for deduction of deduction of GST TDS will be issued in FORM GSTR 7A.
In how many days TDS certificate in GST is required to be provided to deductee?
TDS certificate is required to be furnished within 5 days of crediting that amount to the account of government.Â
What is the late fees for the non-furnishing of GST TDS certificate?
A late fee of one hundred rupees per day from the day after the expiry of such five days period until the failure is rectified, subject to a maximum amount of five thousand rupees.
CA Shafaly Girdharwal
CA
New Delhi, India
CA Shaifaly Girdharwal is a GST consultant, Author, Trainer and a famous You tuber. She has taken many seminars on various topics of GST. She is Partner at Ashu Dalmia & Associates and heading the Indirect Tax department. She has authored a book on GST published by Taxmann.
