FAQs on TDS under GST dated 28-09-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
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
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suppliers)
Registration requirement for TDS deductors & Procedure of Registration
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 t
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ion 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. 11 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. 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. Informa
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se 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
Situations when tax is required to be deducted in 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
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77; 1.5 Lakh in respect of an invoice dated 25.10.2018 submitted by the supplier. Should I deduct tax while making payment of ₹ 1.5 Lakh?
Ans. Yes. Tax is required to be deducted since the payment is being made after the effective date
Q. 22 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. 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
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* all services which are exempted as per principal notification No.12/2017 – Central Tax (Rate) as amended from time to time;
* all goods which are exempted as per principal notification No.2/2017 – Central Tax (Rate) as amended from time to time;
* When the goods and services are supplied prior to 30.09.2018 and payments are being made after 01.10.2018.
Valuation for deduction of tax with illustrations
Q. 26 Mr Z, a supplier in West Bengal has issued a Tax Invoice of ₹ 11,800/- for supply of goods/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
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t IGST @2%.
Q. 29 Health Department of WB receives a taxable service from MNO company of WB. What would be the nature of TDS to be deducted here & what would be the rate of deduction?
Ans. The DDO of the Health Department is liable to deduct TDS (1% CGST+1% SGST) while making payment to MNO Company as in this case the supplier or the vendor & the DDOs office (the place of supply) both are in West Bengal.
TDS Payment
Q. 30 How can I discharge my TDS liability?
Ans. TDS liability can be discharged by debiting of Electronic Cash Ledger only at the time of filing return in FORM GSTR 7.
Q. 31 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 & ₹ 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 r
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t so deducted will be auto-populated in 'TDS/TCS credit receipt' table of respective suppliers. The supplier (deductee) has to accept or reject the amount so auto-populated in the table after logging on the portal. The accepted amount will be credited to Electronic cash ledger while rejected amount will be auto-populated in Amendment table of next month's FORM GSTR-7 of the deductor.
Q. 34 What will happen if the TDS credit entry is rejected by the deductee?
Ans. The rejected transactions in 'TDS/TCS credit receipt' table will be communicated back to the deductor who will download the auto-populated transactions and make necessary amendments in GSTIN or amount etc. in table 4 of FORM GSTR-7. The amended 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. 35 Is
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of the electronic cash Ledger and that can be done only while submitting FORM GSTR 7. So, unless the return in FORM GSTR 7 is submitted the payment liability of the DDO will not be treated as discharged.
Q. 38 Mr S has deducted GST amounting to ₹ 50,000/- in the month of Nov'18. He filed return on 16.12.2018. Is he liable to pay a late fee?
Ans. Yes he is liable to pay a late of ₹ 600/- at the rate of ₹ 100/- per day for delay of 6 days (11.12.2018 – 16.12.2018). Maximum amount of late fee payable is capped at ₹ 5,000/- Similar late fees is applicable under SGST Act / UTGST Act.
Q. 39 During October, 2018, I have not deducted any amount of GST. Do I need to file return for the month of October?
Ans. The Deductor i.e. DDO is required to furnish a return in FORM GSTR-7 electronically for the month in which such deductions have been made in accordance with the provision of section 39(3) of the CGST/ SGST Acts,
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/ non-revoked digital signature (DSC) in case return is to be filed through DSC.
* Tax Deductor has made payment or credited the amount to the supplier's account
Q. 44 What are the modes of signing FORM GSTR-7?
Ans. FORM GSTR-7 can be filed using DSC or EVC.
Q. 45 Can I preview the FORM GSTR-7 before filing?
Ans. Yes, the preview of FORM GSTR-7 can be seen by clicking on 'Preview Draft GSTR-7' before filing on the GST Portal.
Q. 46 What happens after FORM GSTR-7 is filed?
Ans. After FORM GSTR-7 is filed:
* ARN is generated on successful filing of the return in FORM GSTR-7.
* An SMS and an email are sent to the applicant on his registered mobile and email id.
Q. 47 Can I file the complete FORM GSTR-7 using Offline Utility?
Ans. No. Filing can take place only online on the GST Portal. The details of Table 3 and Table 4 can be prepared offline but remaining activities like pay
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wnloaded 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 Utility?
Ans. No. One can download the FORM GSTR-7 Offline Utility under 'Download' section without logging in to the GST Portal.
Q. 51 Do I need to login to GST Portal to upload the generated JSON file using FORM GSTR-7 Offline Utility?
Ans. Yes. You must login in to the GST Portal to upload the generated JSON file using FORM GSTR- 7 Offline Utility
Q. 52 What are the basic system requirements/ configurations required to use FORM GSTR-7 Offline Tool?
Ans. The offline functions work best on Windows 7 and above and MS EXCEL 2007 and above.
Q. 53 Is Offline utility mobile co
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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 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.
Q. 58 I've uploaded GSTR-7 JSON File and it was processed without error. Do I need to download the generated file?
Ans. No, it is not necessary to download the GSTR-7 JSON File processed without error. One can download it onl
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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 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 ₹ 1,00,000/-.
TDS Certificate &Benefit of TDS to the deductee
Q. 61 As a DDO I have deducted tax while making payment to various Vendors. I have deposited the amount in the appropriate G
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ate; 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. The GST Home page is displayed. 2. Login to the GST Portal with valid credentials. 3. Click the Services → User Services → View/Download Certificates command.
Manuals, Ready rec
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