STANDARD OPERATING PROCEDURE (Updated as on 27th December 2018)
GST
Dated:- 28-12-2018
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Document 1GST
NATION
TAX
MARKET
STANDARD OPERATING PROCEDURE
TDS
家
under GST
A ready reckoner for DDOS / other Deductors in GST
(Updated as on 27th December 2018)
Law Committee
GST Council
28th September 2018
1. Introduction..
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Contents
2. Relevant provisions of TDS in GST and effective date.
2.1 Provisions of Law
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2.2 Effective date…..
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2.3 Brief Diagrammatic representation of the TDS provisions in GST â⬦……… 6
2.4 Concept of Supply in GST
3. When tax deduction is required to be made in GST……….
3.1 Conditions for & amount of deduction
4. When tax deduction is not required to be made in GST……..
5. Illustrations of various situations requiring deduction of tax…….
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6. Valuation of supply for deduction of TDS and applicable rates with
illustrations…….
6.1 Rate of d
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nder GST…….
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10.3 Filing of TDS Return for period during which there was no
registration……â⬦â⬦â⬦â⬦â⬦â⬦
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11. Benefit of TDS to deductee and TDS certificate……..
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12.
Late fee, interest and penalty….
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13.
Legal References……
14. Frequently asked questions (FAQs)…………
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1. Introduction:
The concept of Tax Deduction at Source (TDS) was there in the
erstwhile VAT Laws. GST Law also mandates Tax Deduction at Source
(TDS) vide Section 51 of the CGST/SGST Act 2017, Section 20 of the
IGST Act, 2017 and Section 21 of the UTGST Act, 2017. GST Council in
its 28th meeting held on 21.07.2018 recommended the introduction of
TDS from 01.10.2018.
Following would be the deductors of tax in GST under section 51 of the
CGST Act, 2017 read with notification No. 33/2017-Central Tax dated
15.09.2017:
(a) a department or establishment of the Central Government or
State Go
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ment made or credited to the supplier of taxable goods or services
or both (herein after referred to as 'the deductee') at a prescribed rate.
2.2 Effective date:
Notification No. 33/2017 – Central Tax dated 15.09.2017 was issued
by the CBIC to enable registration of tax deductors. However,
Government suspended the applicability of TDS till 30.09.2018.
Now, it has been decided that the TDS provision would be made
operative with effect from 01.10.2018. Notification No. 50/2018-
Central Tax dated 13.09.2018 has already been issued in this regard by
CBIC. Similar notifications have been issued by respective State
Governments.
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2.3 Brief Diagrammatic presentation of the TDS provisions in GST:
Deductor is required to
take registration
[Sec 24(vi)]
Registration to be done through the common
portal www.gst.gov.in by using PAN/TAN
Enters into
Contract for
of
purchase
taxable goods
/services or
both with any
supplier
Total Value of taxable supply under
a contract (excluding GST) >Rs.2.5L
ââ⬠â
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ier is in State A and the place of
supply is in State or Union territory without legislature B, it is
an inter-State supply and TDS @ 2% under IGST Act is to be
deducted if the deductor is registered in State A.
f. When advance is paid to a supplier on or after 01.10.2018 to a
supplier for supply of taxable goods or services or both.
4. When tax deduction is not required to be made under
GST:
Tax deduction is not required in following situations:
a) Total value of taxable supply ââ⬰¤ Rs. 2.5 Lakh under a contract.
b) Contract value > Rs. 2.5 Lakh for both taxable supply and
exempted supply, but the value of taxable supply under the said
contract ââ⬰¤ Rs. 2.5 Lakh.
c) Receipt of services which are exempted. For example services
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exempted under notification No. 12/2017 – Central Tax (Rate)
dated 28.06.2017 as amended from time to time.
d) Receipt of goods which are exempted. For example goods
exempted under notification No. 2/2017 – Central Tax (Rate) dated
28.06.2017 as amended f
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e charge by the recipient i.e.
the deductee.
1) Where the payment is made to an unregistered supplier.
m) Where the payment relates to “Cess” component.
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5. Illustrations of various situations requiring deduction
of tax:
Situations / Contracts
Deduction
required
Remarks
YES/NO
Finance Department is making a
payment of Rs.3 Lakh to a supplier
of 'printing & stationery'.
Education Department is making
payment of Rs.5 Lakh to a supplier
of 'printed books and printed or
illustrated post cards' where
Yes
Yes, deduction
is required in
respect of
payment of Rs.
3 Lakh only i.e.
Where the total contract
value of taxable supply is
more than Rs.2.5 Lakh
deduction is mandatory.
Books are exempted goods;
no deduction is required in
respect of supply of books.
However, payment involving
ââ¬Â¨printed or illustrated post
payment for books is Rs.2 Lakh and for payment in cards' is for supply of taxable
Rs.3 Lakh is for other printed or
illustrated post cards.
respect of
taxable supply.
Finance Dep
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to deductee on which tax is
deducted” column.
Q56
I have mistakenly entered rows with the same GSTIN. Should I use the “Delete”
option from the dropdown of ââ¬ÅActionâ⬠column to delete these rows?
A. No, the incorrect data has to be deleted in the utility manually using the “Delete” button
of the keyboard.
Add and Delete options of the “Action” column are meant for adding or deleting data in
the GST portal. Delete option is required to be ignored while preparing FORM GSTR-7 for
first-time upload, and for the subsequent uploads it can be used only to delete those
particular rows from the already-uploaded data on the portal.
Q57 Can I enter negative or decimal amounts in the offline utility?
A. No, any negative value cannot be entered in the utility. However, decimal values can be
entered. All decimal values would be rounded off to two decimal places. But, total liability
will be rounded off to whole number.
Q58
I've uploaded GSTR-7 JSON File and it was processed without error.
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0/- on
10.12.2018 & Rs 30,000 on 30.01.2019.
Since return in FORM GSTR 7 for the month of November, 2018 is filed on 28.02.2019
and he discharges his payment liability of tax so deducted by debiting his electronic cash
ledger as well on this date only, therefore, late fee of 80 days (11.12.2018 to 28.02.2019)
have to be paid under CGST and SGST. The amount of late fee will be restricted to Rs.
5000/- (upper limit provided in the Act). Interest has also to be paid for the delay.
Penalty is also payable by a DDO if he fails to deduct the tax in accordance with the
provisions of sub-section (1) of section 51, or deducts an amount which is less than the
amount required to be deducted under the said sub-section, or where he fails to pay to
the Government under sub-section (2) of section 51 [section 122(v) refers]. He is liable
to penalty of Rs.1,00,000/-.
TDS Certificate &Benefit of TDS to the deductee
As a DDO I have deducted tax while making payment to various Vendors. I have
Q61 deposite
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o file FORM GSTR-7A?
A. No, a tax payer (deductee) is not required to file FORM GSTR-7A.
Q66 Can I as a taxpayer (Deductor or Deductee) download and keep a copy of my
TDS Certificate for future reference?
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A. Yes, TDS Certificate can be viewed and/or downloaded in post-login mode on the GST
portal.
Q67
Being a deductor do I have to fill any form to generate FORM GSTR 7A? How can
I view Form GSTR-7A?
A. No, a deductor is not required to fill up any separate form for generation of FORM
GSTR-7A. FORM GSTR 7A shall be generated if return in FORM GSTR 7 is filed.
To view Form GSTR-7A, perform following steps:
1. Access the www.gst.gov.inURL. The GST Home page is displayed.
2. Login to the GST Portal with valid credentials.
Q68
3. Click the Services > User Services > View/Download Certificates command.
What needs to be done if I have taken registration for TDS on 1st November, 2018 but was
required to deduct TDS from 1st October, 2018?
A. All deductions made earlier must be included while
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