Tax deduction at source[Section 51]
1. Person liable to deduct TDS:
The Government may make it mandatory for the following persons (deductor), to deduct TDS at the rate of 1% from payment made/ credited to supplier (deductee), where value of supply exceeds Rs. 2,50,000:
- A department or establishment of the Central/ State government; or
- Local authority; or
- Government Agencies; or
- Such persons or category of persons as may be notified by the Government on the recommendations of the Council.
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
2. TDS to be deducted only if place of supply is within State of registration:
No deduction shall be made if location of Supplier and Place of Supply is a State or UT which is different from the State/ UT of registration of the recipient.
3. Time limit for deposit of TDS:
The amount deducted as TDS shall be paid to the Government by the deductor within 10 days after the end of the month in which such deduction is made.
4. Failure to deposit TDS: In case deductor fails to deposit TDS with government within prescribed time limit, interest payable shall be payable at such rate (not exceeding 18% as may be notified by government on recommendation of Council) for the period such tax remains unpaid.
5. Issue of TDS Certificate: The deductor shall furnish TDS certificate to the deductee mentioning the contract value, rate of deduction, amount deducted, and amount paid to government and other prescribed particulars.
6. Failure to issue TDS certificate:
In case deductor fails to furnish to the deductee the TDS certificate after deducting TDS within 5 days of deposit of such TDS, he shall be liable to pay late fee at the rate of Rs. 100 per day from day after expiry of such 5 day period until failure is rectified, subject to maximum amount of Rs.5,000.
7. Credit to be claim by deductee:
Deductee shall claim credit in his electronic cash ledger of tax deducted and reflected in the prescribed return of deductor & use the same to pay his tax liability arises in electronic liability ledger.
8. Refund of TDS deducted erroneously:
The refund to the deductor or the deductee arising on account of excess or erroneous deduction shall be dealt with in accordance with the provisions of section 54of this Act. However, no refund to the deductor shall be granted, if the amount deducted has been credited to the electronic cash ledger of the deductee.
Collection of tax at source [Section 52]
1. Person liable to collect tax at source:
An electronic commerce operator (not being an agent) shall collect an amount calculated at such rate not exceeding 1% as may be notified of net value of taxable supplies made through it by other suppliers, where consideration with respect to such supplies has to be collected to by such operator.
2. Time limit for deposit of TCS:
The amount of tax collected at source shall be paid to the Government by the operator within 10 days after the end of the month in which such collection is made.
3. Statement of outward supply:
Every operator who collects the amount specified shall furnish a statement [GSTR-8] containing the details of outward supplies of goods and services or both effected through it, including the supplies returned through it, and the amount collected during a month, within 10 days after the end of such month.
4. Annual statement of outward supply:
Every operator who collects the amount specified shall furnish an annual statement containing the details of outward supplies of goods and services or both effected through it, including the supplies returned through it, and the amount collected during the FY, before the 31st December following the end of such FY.
5. Rectification of error or omission in statement
If any operator after furnishing a statement, discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars in the statement of month when such error or omission noticed. However, interest is required to be paid in case of increase in amount.
No such rectification of any omission or incorrect particulars shall be allowed after the due date for furnishing of statement for the month of September following the end of the financial year or the actual date of furnishing of the relevant annual statement, whichever is earlier.
6. Supplier to claim credit:
Supplier who has supplied goods or services or both through the operator shall claim credit in his electronic cash ledger of amount collected and reflected in the monthly statement of the operator.
7. Matching of details of filed by the operator:
Details of monthly outward supplies furnished by every operator shall be matched with the corresponding details of outward supplies furnished by the concerned registered supplier within prescribed time. In case of any discrepancy, the same shall be communicated to both persons in prescribed manner.
8. Increase in output tax liability in case discrepancy is not corrected:
In case the operator or the supplier does not initiate corrective action in his statement for the month, where value of outward supplies furnished by the operator is more than value of outward supplies furnished by the supplier in his monthly return, the amount in respect of which discrepancy is communicated shall be added to output tax liability of said supplier his return for the succeeding month. Also, supplier shall be liable to pay interest as prescribed from the date such tax was due till the date of its payment.
9. Notice by GST officer:
Any authority not below the rank of Deputy Commissioner may serve a notice, either before or during the course of any proceedings under this Act, requiring the operator to furnish such details relating to:-
- supplies of goods or services or both effected through such operator during any period; or
- stock of goods held by the suppliers in the godowns or warehouses managed by operator and declared as additional places of business by such suppliers
Every operator on whom a notice has been served shall furnish the required information within 15 working days of the date of service of such notice. On failure to provide information required by the notice, a penalty upto Rs.25000/- levied.