Gst collected by zilla parishad pune like wct

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This query is : Resolved

Rakesh Bandal (Querist)

03 December 2018 Sir/Madam
Pune ZP had deducted 2% for GST from RA bill, (not TDS)
just like WCT,
I cant understand why it is deducted
and how to charge GST to government department on RA bills for Works contract services

CA Anita Bhadra

CA Anita Bhadra (Expert)

03 December 2018 Its TDS deducted .
TDS has been implemented from 1st October, 2018 as per the notification no. 50/2018 (Central) issued by the Govt of India .
As per this section, Govt Authorities are liable to deduct tax at source..They have to deduct tax at the rate of 2 percent( 1 percent CGST and 1 percent SGST in the case of intrastate supplies ; 2 percent IGST in the case of interstate supplies) from the payment made or the amount credited to the supplier ,where contract value , exceeds two lakh and fifty thousand rupees (excluding CGST, SGST, IGST, UTGST and Cess).
this 2 % deduction will be made from each payment ( Thats the reason authorities deducted 2 % tax from RA Bill also

Rakesh Bandal

Rakesh Bandal (Querist)

04 December 2018 Madam,
as I have mentioned its not TDS, TDS has been deducted separately on RA bill and in addition too that extra 2% is deducted specifically mentioned as GST

CA Anita Bhadra

CA Anita Bhadra (Expert)

04 December 2018 Deduction of 2% GST is not understood .
Government Authorities supposed to deduct 2 % TDS ( as per Sec 197 C of Income Tax Act and also deduct 2% ( 1 % CGST + 1 % SGST TDS ) on payments of contractors bill wherever total contract value exceeds Rs 250000/-

CA Anita Bhadra

CA Anita Bhadra (Expert)

04 December 2018 I Tax is under sec 194C ( Not 197C)

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