Goods and Services Tax – GST – By: – Bimal jain – Dated:- 17-9-2018 Last Replied Date:- 21-9-2018 – After getting deferred till September 30, 2018, the Central Government vide Notification No. 50/2018 – Central Tax dated September 13, 2018 and Notification No. 51/2018 – Central Tax dated September 13, 2018, has appointed the 1st day of October 2018, as the date on which the provisions of Section 51 of the CGST Act, 2017 (i.e. Tax deduction at source) and Section 52 (i.e. Tax collection at source) shall come into force. For easy digests, we are summarizing hereunder the gist of provisions pertaining to TDS and TCS in GST: Tax Deduction at Source (TDS) under Section 51 of the CGST Act, 2017 read with Rule 66 of the CGST Rules, 2017 Particulars Applicable Section/ Sub-section/ Notification Provisions Who is required to deduct TDS (deductor)? Section 51(1) r.w. Notification No. 50/2018 – Central Tax dated September 13, 2018 Following persons are required to deduct TDS: a department or est
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r IGST] from the payment made or credited to the deductee Value of supply Explanation to Section 51(1) For the purpose of TDS specified above, the value of supply shall be taken as the amount excluding CGST, CGST/UTGST, IGST and cess indicated in the invoice Compulsory registration for TDS deductor Section 24(vi) TDS deductors, whether or not separately registered, are required to compulsorily register in GST irrespective of threshold limits. Form for TDS deductor registration Rule 12(1) Form GST REG-07 – Registration started from September 18, 2017(The Goods and Services Tax (GST) Council, at its 21st meeting in Hyderabad) TDS applicants who do not have a PAN, can register on basis of TAN Payment of TDS by deductor Section 51(2) The amount of 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. TDS Certificate to deductee Section 51(2) and Section 51(3) r.w. Rule 66(3) The deductor shall furnish to the deductee
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2,000/- per day subject to maximum of INR 10,000/- for CGST + SGST/UTGST] Recovery & Refund Determination of amount in default Section 51(7) In accordance with Section 73 (determination of tax in non-fraud cases) or Section 74 (determination of tax in fraud cases) of the CGST Act, 2017 Refund of excess deduction Section 51(8) Refund to deductee arising on account of excess or erroneous deduction shall be dealt in accordance with Section 54. No refund shall be granted if the amount deducted has been credited to electronic cash ledger of deductee. Collection of tax at Source (TCS) under Section 52 of the CGST Act, 2017 read with Rule 67 of the CGST Rules, 2017 Particulars Applicable Section/ Sub-section/ Notification Provisions Who is required to collect TCS? Section 52(1) Every electronic commerce operator ( operator ), not being an agent, shall collect TCS at prescribed rate when taxable supplies are made through it by other suppliers and the consideration with respect to such supp
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ed at the rate not exceeding 1% of the net value of taxable supplies of the goods/services supplied through the portal of the operator Meaning of electronic commerce operator Section 2(45) Electronic commerce operator means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce Meaning of electronic commerce Section 2(44) Electronic commerce means the supply of goods or services or both, including digital products over digital or electronic network Meaning of Net value of taxable supplies Explanation to Section 52(1) Net value of taxable supplies shall mean the aggregate value of taxable supplies of goods or services or both, other than services notified under sub-section (5) of section 9, made during any month by all registered persons through the operator reduced by the aggregate value of taxable supplies returned to the suppliers during the said month Compulsory registration for TCS collector Section 24(x) Every e-commerce operato
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nish a monthly statement in Form GSTR-8 by the 10th of the following month. The operator is also required to file an Annual statement in Form GSTR-9B by the 31st of December following the end of every financial year. The operator can rectify errors in the statements filed, if any, latest by the return to be filed for the month of September, following the end of every financial year or the actual date of furnishing relevant annual statement, whichever is earlier. ITC to supplier Section 52(7) The tax collected by the operator shall be credited to the cash ledger of the supplier who has supplied the goods/services through the operator. The supplier can claim credit of the tax collected and reflected in the return by the Operator in his [supplier s] electronic cash ledger. Matching of details of supplies Section 52(8) to 52(11) The details of the supplies, including the value of supplies, submitted by every operator in the statements will be matched with the details of supplies submitted
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t hesitate to write back to us. Thanks & Best Regards, Bimal Jain FCA, FCS, LLB, B.Com (Hons) Email: bimaljain@hotmail.com – Reply By Balasubramanian Natarajan – The Reply = Presented in a clear and lucid fashion.Thanks a lot in presenting in a tabular form – Reply By Prasanna Kumar – The Reply = Nice presentation. Thank you Bimal Jain. – Reply By BRIJMOHAN GOYAL – The Reply = Dear Sir, Require your opinion on following : 1) Is a separate Notification required for IGST law. Does the CGST notification mutatis mutandis applies (as per Sec. 20 of IGST law) 2) Whether paid or credited is actual payment/credited in bank account or credited can be inferred to be used for credited in Books of Accounts. 3)One transaction: I ask my regional office at Maharashtra to appoint one Clearing Agent(CHA) at Maharashtra for my incoming supplies for Maharashtra. Clearing Agent Charges IGST while raising Invoices to MP. However payment is made to CHA by my regional Office at Maharashtra. Accounts betw
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