GST – GST FAQ 3rd Edition – December, 2018 – 07.1 – 7.1 TDS Scheme (The Questions adopted from the Standard Operating Procedure on TDS under GST released by Law Committee, GST Council on 28th September, 2018) Q 47. When tax deduction is required to be made in GST? Ans. Tax is required to be deducted from the payment made / credited to a supplier, if the total value of supply under a contract in respect of supply of taxable goods or services or both, exceeds ₹ 2,50,000/- (Rupees two lakh and fifty thousand). This value shall exclude the taxes leviable under GST (i.e. Central tax , State tax , UT tax , Integrated tax & Cess). Q 48. As a DDO I am deducting TDS from salary and also while making payment of other bills under Income Tax Act. Then why should I need to deduct TDS again? Ans. TDS under Income Tax is different from TDS under GST. There was a provision of TDS under VAT Act also. TDS under the GST Law is different from the above. Deductions of tax under the GST Laws is r
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educt TDS under GST D. To know the nature of TDS (IGST or CGST & SGST/UTGST) to be deducted & the rate of tax E. To know the GSTIN of his/her vendors/suppliers F. To deduct TDS while making/crediting payment G. To generate CPIN while depositing the deducted tax H. To pay the deducted amount of TDS to the appropriate Govt. A/c I. To submit GSTR-7 (Return) J. To generate GSTR-7A (TDS certificate for suppliers) Q 51. Does every Government office require to be registered under GST laws? Ans. Yes, every Government office shall get itself mandatorily registered under GST. Here the role of DDO is very important as he is responsible for deducting tax while making/crediting payment under GST in applicable cases and, unless & until the process of registration is completed, the DDO will not be able to deduct any tax. Q 52. I am a DDO of a small Government Office. My office has not entered into any contract with any vendor whose taxable value of supply is more than ₹ 2.5 Lakh in
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will have to be uploaded: valid electricity bill or Municipality khata copy or property tax receipt or any legal ownership documents etc. Q 57. To submit my registration application do I always need a DSC? Ans. One can use Electronic Verification Code for submission of the registration form in the common portal apart from DSC. Q 58. How do I know that I have submitted the application form correctly? What is an ARN? Ans. A pop-up message will appear that the form has been successfully submitted & an Acknowledgement Reference Number (ARN) will be sent to the registered mobile no & registered email address of the applicant after successful submission of Registration Application (FORM GST REG-07) online.. Q 59. Is this ARN called the GST registration No? Ans. No. This ARN is generated only for a temporary period. Once FORM GST REG-07 is processed by the proper officer, the 15-digit GSTIN of the Tax Deductor will be generated. This GSTIN is the GST Registration No. of the applicant
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would be liable for any lapse done by this new DDO? Ans. No, the ex-DDO will not be liable for any lapse by his successor in office. A DDO is required to perform any responsibility in respect of TDS in GST either through a valid DSC (which is person specific) or through an EVC which would be sent to the registered mobile no as well as registered email id of the DDO only. Q 64. Is there any threshold exceeding which tax is required to be deducted? Ans. Yes. Tax is required to be deducted from the payment made/credited to a supplier, if the value of supply under a contract in respect of supply of taxable goods or services or both, exceeds ₹ 2,50,000/- (Rupees two lakh and fifty thousand). This value shall exclude the taxes leviable under GST (i.e. Central tax , State tax , UT tax , Integrated tax & Cess ). Q 65. Mr B, a DDO of ABC Office of the Government West Bengal needs to buy stationeries for his office from supplier Mr C. Should Mr B deduct tax under GST while making payme
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the effective date. Q 69. I have entered into a contract worth ₹ 10 Lakh with a supplier XYZ prior to 01.10.2018. I have made a payment of ₹ 3 Lakhs to him prior to 01.10.2018. Now, I am making payment of the balance amount of ₹ 7 Lakh after 01.10.2018. Should I deduct tax on ₹ 10 Lakh? Ans. No. Tax cannot be deducted for any payment made prior to 01.10.2018. So deduction will be made only in respect of ₹ 7 Lakh. Q 70. I enter into a contract with a supplier ABC where the value of taxable supply is ₹ 2 Lakh and payment of ₹ 1 Lakh has been made on 15.10.2018. Now, on 20.10.2018 the contract value is revised from ₹ 2 Lakh to ₹ 6 Lakh. Am I liable to deduct any tax and if so, on which amount? Ans. Yes, TDS shall have to be deducted on entire amount i.e. ₹ 6 lakhs while making remaining payment of ₹ 5 Lakh. In other words, 12,000/- would be deducted when remaining payment of ₹ 5 Lakh is made. Q 71. Mr A. Roy, a DDO h
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ds/services or both worth ₹ 10,000/- and GST of ₹ 1,800/- to Mr A of ABC office in West Bengal. What is the value of payment on which Mr A should deduct TDS during making payment to Mr Z? Calculate the amount payable to Mr Z? Ans. For purpose of deducting of TDS, the value of supply is to be taken as the amount excluding the tax indicated on the invoice. This means TDS shall not be deducted on the CGST, SGST or IGST component of invoice. In this case, TDS is to be deducted on ₹ 10,000/- and not on the full amount of ₹ 11,800/-. Mr Z has issued a Tax Invoice of ₹ 11,800/- which comprises a GST component of ₹ 1,800/-. TDS in this case is to be deducted @ 2% (1% of CGST & 1% of SGST) on ₹ 10,000/-. Mr A will deduct ₹ 200/- which he will deposit in the proper Govt. A/c head. Mr A will pay ₹ 11600/- (11800/ – 200/-) = (i.e. Full Invoice Value – TDS amount) to Mr Z. Q 74. What is the different nature of supply & what is the rate o
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n FORM GSTR 7. Q 78. Payment is made in respect of a single contract whose value of taxable supply is ₹ 3.5 Lakh. Two bills amounting to ₹ 1.5 lakh &Rs. 2 lakh respectively are passed for such payment. Since in respect of both the bills the amount paid does not exceed ₹ 2.5 lakh, I think that no tax is required to be deducted. Am I right? Ans. No. Here the payments are being made against a single contract value of taxable supply exceeding ₹ 2.5 Lakh. Here, the value of taxable supply in the contract is ₹ 3.5 lakh. So, the deductor should deduct TDS on each payment to the supplier in respect of the aforesaid contract. Q 79. When will a DDO know that his liability for payment has been completed?? Ans. Electronic cash Ledger of the DDO will be credited when tax deducted at source is deposited in Government account. Payment of such liability (which is the tax deducted at source) shall have to be done by debiting of the electronic cash Ledger and such debit
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ded details will again be auto-populated in TDS/TCS credit receipt table. Supplier will take action comprising Accept/Reject the transactions. As usual, amount of accepted invoices will be credited to electronic cash ledger of the supplier. Q 82. Is there any provision of refund to the deductor or the deductee arising on a/c of excess or erroneous deduction made under GST? Ans. The refund to the deductor or the deductee arising on account of excess or erroneous deduction shall be dealt with in accordance with the provisions of section 54. Further no refund to the deductor shall be granted, if the amount deducted has been credited to the electronic cash ledger of the deductee. Q 83. Who are liable to file return (GSTR-7)? Ans. Post 01.10.2018, DDOs deducting tax will be liable to file return in FORM GSTR-7 for the month in which such deductions are made. Q 84. What is the need for filing a return when deposit of TDS has already been made? Ans. Electronic cash Ledger of the DDO will be c
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in which such deductions have been made in accordance with the provision of section 39(3) of the CGST/SGST Acts, 2017. Hence, submission of FORM GSTR-7 is not required for a month in which no deduction is made. Q 87. How can a deductor file FORM GSTR-7? Ans. FORM GSTR-7 can be filed on the GST Portal, by logging in the Returns Dashboard by the deductor. The path is Services > Returns > Returns Dashboard. Q 88. Is there any Offline Tool for filing Form GSTR-7? Ans. Yes. FORM GSTR-7 return can be filed through offline mode also. Q 89. Can the date of filing of FORM GSTR-7 be extended? Ans. Yes, date of filing of FORM GSTR-7 can be extended by the Commissioner of State/Central tax through notification. Q 90. What are the pre-conditions for filing FORM GSTR-7? Ans. Pre-conditions for filing of FORM GSTR-7 are: Tax Deductor should be registered and should have a valid/active GSTIN. Tax Deductor should have a valid User ID and password. Tax Deductor should have an active & non-expi
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ue to proceed to file. Liabilities will then be computed and after making payment, return can be filed. Q 95. What are the features of FORM GSTR-7 Offline Utility? Ans. The key features of FORM GSTR-7 Offline Utility are: The FORM GSTR-7 details of Table 3 and 4 can be prepared offline, with no connection to Internet. Most of the data entry and business validations are in built in the offline utility, reducing errors upon upload to GST Portal. Q 96. From where can I download and use the FORM GSTR-7 Offline Utility in my system? Ans. Following steps are required to be performed to download and open the FORM GSTR-7 Offline Utility in your system from the GST Portal: 1. Access the GST Portal: www.gst.gov.in 2. 2. Go to Downloads > Offline Tools > GSTR-7 Offline Utility option and click on it 3. Unzip the downloaded Zip file which contain GSTR-7_Offline_Utility.xls excel sheet. 4. Open the GSTR7_Offline_Utility.xls excel sheet by double clicking on it. 5. Read the Read Me instruction
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lity. Q 102. I am a tax deductor. I ve made payment for four different products to one of my suppliers. Shall I report each payment in four different rows of the offline utility? Ans. No. Row with a duplicate GSTIN is not allowed in the utility. One should report the whole amount in one row only. All the payments are required to be added and one single consolidated amount has to be entered in the Amount paid to deductee on which tax is deducted column Q 103. I have mistakenly entered rows with the same GSTIN. Should I use the Delete option from the dropdown of Action column to delete these rows? Ans. 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 a
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arious Vendors. I have deposited the amount in the appropriate Government A/c & also filed return within stipulated time. Have I discharged all my liabilities relating to TDS? Ans. No. A system generated TDS certificate in FORM GSTR-7A mentioning therein the value on which tax is deducted, and amount of tax deducted and other related particulars shall be available for download from the portal by deductee. Q 108. How can a supplier download the TDS certificate in FORM GSTR 7A? Ans. TDS certificate can be downloaded by access the www.gst.gov.in URL and using the following path: Login to the GST Portal with valid credentials. Navigate to Services > User Services > View/Download Certificates option. Q 109. How many TDS Certificates are issued per GSTIN? Ans. A single TDS certificate is issued per GSTIN per FORM GSTR-7 return filed by deductor. Q 110. Is the signature of Tax Deductor required in TDS Certificate? Ans. FORM GSTR-7A is system generated TDS certificate; signature of T
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