GST – States – ACS/FD/2018 – Dated:- 28-9-2018 – FINANCE SECRETARIAT CIRCULAR No. ACS/FD/2018, Bengaluru, dated: 28th September, 2018 Subt: Guidelines for Deductions and Payments of TDS by the DDOs Of State Government Authorities under GST. Section 51 of the Karnataka Goods and Services Tax(KGST) Act, 2017, Central Goods and Services Tax (CGST) Act, 2017 and Integrated Goods Services Tax (IGST) Act, 2017 provide for deduction of tax by the Government Agencies (Deductor) or any other person as notified in this regard, from the payment made or credited to the supplier (Deductee) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees. The amount deducted as tax under this section shall be paid to the Government by deductor within ten days after the end of the month in which such deduction is made alongwith a return in FORM GSTR-7 giving the details of deductions and deductees. Further, the deductor has to i
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which GST was introduced. Government has recently notified that these provisions shall come into force with effect from 1st October, 2018, vide Government of Karnataka Notification No. FD 47 CSL 2017 dated 14.9.2018 and Notification No. 50/2018-Central Tax dated 13th September, 2018 of Government of India. 4. For payment process of Tax Deduction at Source under GST two options can be followed, which are as under: Option I: Generation of challan for every payment made during the month. Option II: Bunching of TDS deducted from the bills on weekly, monthly or any periodic manner. 5. DDOs operating on Khajane 1 shall exercise Option I, selecting OTC cheque mode of payment when generating challan on GST common portal. DDOs operating on Khajane 2 shall exercise Option II, selecting NEFT/RTGS mode of payment with RBI PAD as remitting bank while generating the challan. 6. Under Option I, Treasury shall provide to DDO a cheque for TDS payment against every bill with TDS deduction. For this pur
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payments on a weekly, monthly or any other periodic basis. 8. In order to give effect to the above options from 01.10.2018, a process flow of deduction and payment of TDS by the DDOs has been finalised in consultation with Department of Revenue, Finance Department, Government of India and the Principal Secretary (Khajane 2), Finance Department, Government of Karnataka for guidance and implementation by State Government Authorities. The process flows under both the options are described as under: Option I – Individual Bill-wise Deduction and its payment by the DDO 9. DDOs who are operating on Khajane 1 shall exercise this option. In this option, the DDO will have to deduct as well as remit the GST TDS for each bill individually by generating a Challan with PIN (Common Portal Identification Number) and attaching it with the Bill itself. 10. Following process shall be followed by the DDO in this regard: (i) The DDO shall prepare the Bill based on the Expenditure Sanction. The Expenditure
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n favour of one of the 25 authorized Banks. The Cheque may then be deposited along with the Challan with CPIN with any of branch of the authorized Bank so selected by the DDO. (vii) Upon successful payment, a CIN (Challan Identification Number) will be generated by the RBI/ Authorized Bank and will be shared electronically with the GSTN Portal. This will get credited in the electronic Cash Ledger of the concerned DDO in the GSTN Portal. This can be viewed and the details of CIN can be noted by the DDO anytime on GSTN portal using his Login credentials. (viii) The DDO should maintain a Register as per proforma given in Annexure 'A' to keep record of all TDS deductions made by him during the month. This Record will be helpful at the time of filing Monthly Return (FORM GSTR-7) by the DDO. The DDO may also make use of the offline utility available on the GSTN Portal for this purpose. (ix) The DDO shall generate TDS Certificate through the GST Portal in FORM GSTR-7A after filing of
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oking in the Deposit Account with the Head of Account 8449-00-120-0-xx-662. (v) The DDO will require to maintain the Record of the TDS of GST being booked under the Deposit Head so that at the time of preparing the Challan at the GST Common Portal with CPIN (Common Portal Identification Number) for making payment on weekly/monthly or any other periodic basis, the total amount could be easily worked out. (vi) At any periodic interval, when DDO needs to remit the TDS amount, he will prepare the Challan with CPIN on the GST Common Portal for the amount (already booked under the Deposit Account). (vii) While generating the Challan with CPIN, the DDO will have to select mode of payment as NEFT/RTGS. In the NEFT/RTGS mode, the DDO will have to select the remitting Bank as Reserve Bank of India PAD. GSTN portal shall automatically select beneficiary name as GST, beneficiary account number as CPIN and beneficiary IFSC as RBISOGSTPMT. (viii) In Khajane 2, the DDO shall register GST as a recipie
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n the electronic Cash Ledger of the concerned DDO in the GSTN Portal. This can be viewed and the details of CIN can be noted by the DDO anytime on GSTN portal using his login credentials. (xiii) The DDO should maintain a Register as per proforma given in Annexure 'A' to keep record of all TDS deductions made by him during the month. This Record will be helpful at the time of filing Monthly Return (FORM GSTR-7) by the DDO. The DDO may also make use of the offline utility available on the GSTN Portal for filing the return in Form GSTR-7. (xiv) The DDO shall file the Return in FORM GSTR-7 by 10th of the following month (xv) The DDO shall generate TDS Certificate through the GSTN Portal in FORM GSTR-7A 13. Difficulty, if any, in implementation of this circular may please be brought to the notice of the Director of Treasuries, Finance Department. I.S.N. Prasad Additional Chief Secretary to Government, Finance Department For instance, if the total invoice value is ₹ 118, and th
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