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GST TDS under Section 51

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Praveen Suthar

22 Points Posted on 20 May 2020

A public sector undertaking deducted GST TDS u/s 50 of CGST act in respect of vendors. Due to lock down at the time of payment of GST TDS, payment could not be made due to GSTIN of vendor being in CANCELLED state as on the date of Payment. Now they are ready to pay the TDS with interest.

Query
1. whether they can make payment of GST TDS against cancelled GSTIN of vendors.
2. Whether such credit will appear in their account as and when GSTIN is re activated or will this credit be lost for such vendors.

Replies (2)

Quick Summary

This discussion addresses a public sector undertaking's challenge in paying GST TDS due to a vendor's cancelled GSTIN at the payment date. The query explores whether TDS can be paid against a cancelled GSTIN and if vendors will still receive credit once their GSTIN is reactivated. The consensus is that a cancelled GSTIN is akin to an unregistered dealer, and while TDS credit is generally for registered dealers, it should still be available to the deductee upon GSTIN reactivation.

DEENANATH GUPTA

DY MANAGER

22 Points Posted on 20 May 2020

A dealer with cancelled gstn is as good as unregistered dealer .gst TDS is not applicable to unregistered dealer as underlying principle is to give tds credit to the deductee who is gst registered.