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TDS ON GST

Utpal roy (back office asst) (252 Points)

22 June 2020

Sir, i submit bills to my client but they deduct tds on gst. i could not understand the provision. pl explain.

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12 Replies

CA Surjeet Negi (Indirect Tax- Consultant) (50 Points)
Replied 22 June 2020

pls elaborate if you are talking about TDS under income tax or GST?

Utpal roy (back office asst) (252 Points)
Replied 22 June 2020

Tds on gst sir

RAJA P M ("Do the Right Thing...!!!") (127058 Points)
Replied 22 June 2020

@ Mr Utpal Roy.,

Who is the customer...?
Is they are any govt related party...?

Utpal roy (back office asst) (252 Points)
Replied 22 June 2020

Yes sir, STEEK AUTHORITY OF INDIA

RAJA P M ("Do the Right Thing...!!!") (127058 Points)
Replied 22 June 2020

Yes...

As per GST TDS is applicable if You are supplied goods to govt entities and some other notified govt entities...

Rajkumar Patel (602 Points)
Replied 22 June 2020

It is wrong deduction of Tax because TDS under income tax is deducted on the gross amount of expense (i.e income for you).
e.g gross value =100
TDS @ 1% = (1)
GST @ 18%= 18
----------------------
TOTAL =117

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 23 June 2020

Yes in term of Section 51 of CGST Act : Steel authority of India is liable deduct TDS @ 1% from the payment made or credit to supplier for Taxable goods or services or both where the value such supply ,under contract exceeds 2.5 lac .

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 23 June 2020

The rate is 1% or 2%?

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 23 June 2020

Yes It's 2% IGST & 1% CGST+1% SGST

Utpal roy (back office asst) (252 Points)
Replied 23 June 2020

Thanks to all

CA Surjeet Negi (Indirect Tax- Consultant) (50 Points)
Replied 23 June 2020

Mr. Utpal. Sorry for later reply. I believe your query has been sorted. However, it is important to bring to your knowledge that the TDS(gst) deducted by SAIL will get credited to you Electronic cash ledger post acceptance the TDS reported on your GSTIN and the same is allowed to pay the outward gst liability. Trust the same suffice your requirement. In case of any concern, please message me. Regards

Bhavika Kothari (CA) (1258 Points)
Replied 26 June 2020

"Are they government authorities. If yes then as per law they should be deducting TDS and file GSTR-7. Once they file GSTR-7 the details of the same would reflect in your GSTR2X . All you have to do now is get GSTR2X, accept the invoices and file your return. Once you file your return the amount of TDS deducted by them would get credited to your cash ledger. You can use this amount to settle your liabilities.