With the notification 50/2018 (Central Tax) Dated 13.09.2018, TDS under section 51 of the CGST Act is coming into force from 01.10.2018. The notification provides who all are falling under this provision & the effective date of coming into force of TDS provision under GST, while the principal provisions remain same till date. Accordingly, let us look back & see what are the related provisions related to TDS under GST. The provisions are briefed up below for easy reading purpose, so sit back relax & enjoy the write up!
Governing provisions of TDS under GST:-
- Sec 51 of CGST Act
- Rule 60(6) of CGST Rule as on date
- Rule 66 of CGST Rule as on date
Some pointers about TDS under GST:-
- 1% CGST (and 1% SGST) of
- Amount Paid or Credited to only the intra state supplier, including URD supplier
- Of taxable
- Goods or services or both
- If the value of such supply [Read with point 8, 9 & 10]
- Under a contract
- Exceeds 2.5 lakhs
- Value excludes GST and Cess mentioned in the invoice.
- So, Toll, other govt. fees or taxes to be included while calculating value
- So, TDS shall not be deducted on the GST component of invoice.
- So, TDS shall not be deducted for inter-state sale
GST TDS Return, Dates & GST TDS Credit:-
- The amount deducted to be paid & return GSTR 7 to be filed by 10th of the following month
- Details of deduction shall be made available electronically
- To each of the supplier [Means at GSTIN level]
- In Part C of R. 2A or R. 4A and,
- On the common portal
- Deductee may include the same in FORM GSTR-2. [R. 60(6)]
- Deductee shall claim Credit in Electronic Cash ledger [Sec 51(5)]
- TDS certificate to be furnished to the deductee by 15th of the next month as per Rule 66(3)
- GST TDS Certificate shall be made available to the deductee, electronically on the common portal in R 7A
Interest, Penalty, fees under GST TDS:-
- Late fee of Rs 100/- under CGST (Similar under SGST), maximum Rs 5000/-
- If failed to furnish TDS certificate as per Rule 66(3)
- It means late fees cannot be levied if GST TDS Certificate is not been issued due to portal or other issues.
- For non-payment of GST TDS by 10th to attract 18% PA interest.
Extract of GSTR 2A, (it is unclear why IGST column is there in R7 & R7A. Is IGST col in R2A for TCS purpose?):
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