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GST TDS Snapshot

Ashok Kumar Tekuru 
on 04 October 2018

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Brief about GST TDS

Section - 51 of CGST Act
Effective Date: 01.10.2018

What Section Says:

Persons notified vide Notification No. 33/2017 - Central Tax, shall be liable to deduct tax @1% under CGST and 1% under SGST from the payment made or credited to the supplier of taxable goods or services or both if the total value of such supply, under a contract, EXCEEDS TWO LAKH AND FIFTY THOUSAND RUPEES (Rs. 2,50,000).

Notified persons 33/2017:

(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) 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

Registration Requirements: The person mentioned in above notification have to take separate Registration (REG 7) under GST Act as TDS Deductor.

Time limit to deposit tax

GST TDS Deductor shall deposit tax within ten days after the end of the month in which such deduction is made.

Rate of interest in case of default in deposit
Rate of interest: interest needs to be paid @18% p.a. in case of default in payment of tax deducted.

Particulars & time of issuance of Certificate of deduction of tax:

GST TDS Deductor shall issue certificate within five days of crediting the amount so deducted to the Government with the following particulars:

i. the contract value,
ii. rate of deduction,
iii. amount deducted,
iv. amount paid to the Government
v. Other particulars as may be prescribed.

Late fees for non-issue of certificates as mentioned above:

100/- rupees per day, maximum five thousand rupees. Late fees applicable from the day after the expiry of such five days period until the failure is rectified.

RETURNS TO BE FILED BY DEDUCTOR (GSTR 7):

The person deducting tax is required to file a TDS return in form GSTR-7 within 10 days from the end of the month.

Note: When GSTIN of the unregistered supplier is not available, their name can be mentioned.

Example of Accounting of GST TDS:


 

Eg: Bill Received from  "A"(Contractor)

354000

     
 

Basic Amount

300000

 

CGST 9%

27000

 

SGST 9%

27000

 

Total

354000

     
 

Need to pass the bill as follows:

 
 

Bill Amount

300000

 

GST @ 18%

54000

 

Gross

354000

 

Income Tax TDS  Eg: 2%

6000

 

CGST TDS @ 1%

3000

 

SGST TDS @ 1%

3000

   

342000

 

Entries

 
     
 

Payt To Vendor

 

1

"A" A/c Dr

342000

 

To Bank A/c

342000

     
 

Booking Expenditure

 

2

Expenditure A/c- Dr

300000

 

GST Receivable A/c - Dr

54000

 

To

 
 

"A" A/c

342000

 

Income Tax TDS Payable

6000

 

CGST Payable

3000

 

SGST Payable

3000

     
 

Payt of TDS (to Government)

 

3

Income Tax TDS Payable- Dr

6000

 

CGST Payable - Dr

3000

 

SGST Payable - Dr

3000

 

To

 
 

Bank A/c

12000


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Other Articles by -
Ashok Kumar Tekuru 

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