FAQs on TDS under GST dated 28-09-2017 – GST – General FAQ on GST – Frequently Asked Questions – 170929-01 – TDS in GST Q. 1 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 required to be made wherever applicable while making payments to the suppliers/ vendors of goods or services or both under GST for taxable supply of goods or services or both. Persons liable to deduct TDS under GST Laws Q. 2 Who are liable to deduct TDS? Ans. All the DDOs of the (a) a department or establishment of the Central Government or State Government; (b) local authority; (c) Governmental agencies; (d) an authority or a board or any other body, -(i) set up by an Act of Parliament or a State Legislature; or (ii) e
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gistration Q. 4 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. 5 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 the recent past. Do I have to take GST registration for my office? Ans. No. You are liable to register only when you make a payment on which tax is required to be deducted Q. 6 Do I have to pay any Fees for obtaining a GST registration? Ans. No fee is required to be paid for obtaining a GST Registration on the common portal Q. 7 Is there any printed form for registration which I require to fill up? Ans. No. T
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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. 12 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 office. Q. 13 How do I know that GSTIN has been generated for my office or not? Ans. Information will be given to the DDO in his registered email id as well as registered mobile no. Q. 14 After getting GSTIN what should I do? Ans. DDO should update his DDO master details with the GSTIN in their respective DDO login in E-bill module of PFMS. Q. 15 As a DDO, I have to enter some personal information to get TDS registr
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n GST Q. 17 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. 18 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 payment to Mr C? Ans. Yes, Mr B is required to deduct tax while making / crediting payment to Mr C if value of taxable supply under a contract exceeds ₹ 2.5 lakh. Situations when Tax is not required to be deducted in GST Q. 19 Is there any threshold up to which GST needs not to be deducted? Ans. Yes, GST need not to be deducted where the value of taxable supply unde
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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. 23 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. 24 Mr A. Roy, a DDO has purchased goods during May, 2018. He could not make payment for such purchase due to shortage of allotment. He is expected to receive allotment only in October, 2018. Is he liable to deduct TDS while making payment in the month of October considering that the purchase was made before October? Ans. The tax pay
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d 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. Nature of TDS & its Rate Q. 27 What is the different nature of supply & what is the rate of deduction? Ans. Location of the Supplier & Place of supply is in the same State /UT without any legislature (CGST 1% SGST
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7; 1.5 lakh & ₹ 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. 32 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 can be done while submitting FORM GSTR 7. So, unless the return in FORM GSTR 7 is submitted the payment liability of the DDO will not be complet
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al, amount of accepted invoices will be credited to electronic cash ledger of the supplier. Q. 35 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. TDS return Q. 36 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. 37 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 credited when tax deducted at source is deposited in Government account. Payment of such liability (which is the tax deducted at source) sh
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of FORM GSTR-7 is not required for a month in which no deduction is made. Q. 40 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. 41 Is there any Offline Tool for filing Form GSTR-7? Ans. Yes. FORM GSTR 7 return can be filed through offline mode also. Q. 42 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. 43 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-expired/ non-revoked digital signature (DSC) in case return is to be filed through DSC. Tax Deductor has made payment or credited the amount
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ORM 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. 49 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. Go to Downloads > Offline Tools > GSTR7 Offline Utility option and click on it. 3. Unzip the downloaded Zip file which contain GSTR7_Offline_Utility.xls excel sheet. 4. Open the GSTR7_Offline_Utility.xls excel sheet by double clicking on it. 5. Read the Read Me instructions on excel sheet and then fill the worksheet accordingly. Q. 50 Do I need to login to GST Portal to download the FORM GSTR-7 Offline Utilit
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ferent 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. 56 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 already-uploaded data on the portal. Q. 57 Can I enter negative or decimal amounts in the offline utility? Ans. No, any negative value cannot be
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FORM GSTR 7 on 28.02.2019. Has he incurred any liability to pay late fee or interest? Is he liable to pay any penalty? Ans. Electronic Cash Ledger of the DDO is credited on 10.12.2018 and 30.01.2019 with ₹ 70,000/- and ₹ 30, 000/- respectively on account of deposit of TDS of ₹ 70,000/- on 10.12.2018 & ₹ 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 ₹ 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 deduct
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option. Q. 63 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. 64 Is the signature of Tax Deductor required in TDS Certificate? Ans. FORM GSTR-7A is system generated TDS certificate; signature of Tax Deductor is not required 65 Do I as a taxpayer have to file FORM GSTR-7A? Ans. No, a tax payer (deductee) is not required to file FORM GSTR-7A Q. 66 Can I as a taxpayer (Deductor or Deductee) download and keep a copy of my TDS Certificate for future reference? Ans. Yes, TDS Certificate can be viewed and/or downloaded in post-login mode on the GST portal. Q. 67 Being a deductor do I have to fill any form to generate FORM GSTR 7A? How can I view Form GSTR-7A? Ans. 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.in URL
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