Standard Operating Procedure on TDS under GST
GST
Dated:- 29-9-2018
PDF DOWNLOAD
\n=============
\nDocument 1GST
\nNATION
\nTAX
\nMARKET
\nSTANDARD OPERATING PROCEDURE
\nTDS
\n\u00e5\u00ae\u00b6
\nunder GST
\nA ready reckoner for DDOS \/ other Deductors in GST
\nLaw Committee
\nGST Council
\n28th September 2018
\nContents
\n1. Introduction..
\n2. Relevant provisions of TDS in GST and effective date
\n2.1 Provisions of Law ……
\n4
\n………………
\n5
\n5
\n5
\n2.2 Effective date
\n………
\n2.3 Brief Diagrammatic representation of the TDS provisions in GST…\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026. 6
\n2.4 Concept of Supply in GST……….
\n3. When tax deduction is required to be made in GST………
\n3.1 Conditions for & amount of deduction
\n4. When tax deduction is not required to be made in GST……..
\n5. Illustrations of various situations requiring deduction of tax…….
\n…
\n7
\n8
\n8
\n9
\n11
\n6. Valuation of supply for deduction of TDS and applicable rates with
\nillustrations…….
\n6.1 Rate of dedu<\/p>\n
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For full text:-Visit the Source <\/a><\/p>\n
\n22
\n23
\n24
\n24
\n10.1 TDS return submission procedure……..
\n10.2 Time limit for filing the TDS Returns under GST …….
\n24
\n11.
\nBenefit of TDS to deductee and TDS certificate………
\n12.
\nLate fee, interest and penalty..
\n13.
\n14.
\nLegal References\u2026….
\nFrequently asked questions (FAQs)………
\n3
\n25
\n…….
\n25
\n26
\n27
\n1. Introduction:
\nThe concept of Tax Deduction at Source (TDS) was there in the
\nerstwhile VAT Laws. GST Law also mandates Tax Deduction at Source
\n(TDS) vide Section 51 of the CGST\/SGST Act 2017, Section 20 of the
\nIGST Act, 2017 and Section 21 of the UTGST Act, 2017. GST Council in
\nits 28th meeting held on 21.07.2018 recommended the introduction of
\nTDS from 01.10.2018.
\nFollowing would be the deductors of tax in GST under section 51 of the
\nCGST Act, 2017 read with notification No. 33\/2017-Central Tax dated
\n15.09.2017:
\n(a) a department or establishment of the Central Government or
\nState Government; or
\n(b) local authority; or
\n(c) Governmental agencies; or
\n(d) an authority<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n2.2 Effective date:
\nNotification No. 33\/2017 – Central Tax dated 15.09.2017 was issued
\nby the CBIC to enable registration of tax deductors. However,
\nGovernment suspended the applicability of TDS till 30.09.2018.
\nNow, it has been decided that the TDS provision would be made
\noperative with effect from 01.10.2018. Notification No. 50\/2018-
\nCentral Tax dated 13.09.2018 has already been issued in this regard by
\nCBIC. Similar notifications have been issued by respective State
\nGovernments.
\n5
\n2.3 Brief Diagrammatic presentation of the TDS provisions in GST:
\nDeductor is required to
\ntake registration
\n[Sec 24(vi)]
\nRegistration to be done through the common
\nportal www.gst.gov.in by using PAN\/TAN
\nEnters into
\nContract for
\nof
\npurchase
\ntaxable goods
\n\/ services or
\nboth with any
\nsupplier
\nTotal Value of taxable supply under
\na contract (excluding GST) >Rs.2.5L
\n\u00e2\u2020\u2019 Deduct tax from payment
\nTotal Value of taxable supply under a
\ncontract (excludi<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nan inter-State supply and TDS @ 2% under IGST Act is to be
\ndeducted if the deductor is registered in State A.
\nf. When advance is paid to a supplier on or after 01.10.2018 to a
\nsupplier for supply of taxable goods or services or both.
\n4. When tax deduction is not required to be made under
\nGST:
\nTax deduction is not required in following situations:
\na) Total value of taxable supply \u00e2\u2030\u00a4 Rs. 2.5 Lakh under a contract.
\nb) Contract value > Rs. 2.5 Lakh for both taxable supply and
\nexempted supply, but the value of taxable supply under the said
\ncontract \u00e2\u2030\u00a4 Rs. 2.5 Lakh.
\nc) Receipt of services which are exempted. For example services
\n9
\nexempted under notification No. 12\/2017 – Central Tax (Rate)
\ndated 28.06.2017 as amended from time to time.
\nd) Receipt of goods which are exempted. For example goods
\nexempted under notification No. 2\/2017 – Central Tax (Rate) dated
\n28.06.2017 as amended from time to time.
\ne) Goods on which GST is not leviable. For example petrol, dies<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nm) Where the payment relates to “Cess” component.
\n10
\n5. Illustrations of various situations requiring deduction
\nof tax:
\nSituations \/ Contracts
\nDeduction
\nrequired
\nRemarks
\nYES\/NO
\nFinance Department is making a
\npayment of Rs.3 Lakh to a supplier
\nof 'printing & stationery'.
\nEducation Department is making
\npayment of Rs.5 Lakh to a supplier
\nof 'printed books and printed or
\nillustrated post cards' where
\npayment for books is Rs.2 Lakh and
\nRs.3 Lakh is for other printed or
\nillustrated post cards.
\nFinance Department, is making
\npayment of Rs.1.5 Lakh to a supplier
\nof 'car rental service'.
\nYes
\nYes, deduction
\nis required in
\nrespect of
\npayment of Rs.
\n3 Lakh only i.e.
\nfor payment in
\nrespect of
\ntaxable supply.
\nSee Remarks
\nWhere the total contract
\nvalue of taxable supply is
\nmore than Rs.2.5 Lakh
\ndeduction is mandatory.
\nBooks are exempted goods;
\nno deduction is required in
\nrespect of supply of books.
\nHowever, payment involving
\n'printed or illustrated post
\ncards' is for supply of ta<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nQ44 What are the modes of signing FORM GSTR-7?
\nA. FORM GSTR-7 can be filed using DSC or EVC.
\nQ45 Can I preview the FORM GSTR-7 before filing?
\nA. Yes, the preview of FORM GSTR-7 can be seen by clicking on \u2018Preview Draft GSTR-7' before
\nfiling on the GST Portal.
\nQ46 What happens after FORM GSTR-7 is filed?
\nA. After FORM GSTR-7 is filed:
\n\u2022
\nARN is generated on successful filing of the return in FORM GSTR-7.
\nAn SMS and an email are sent to the applicant on his registered mobile and email id.
\nQ47 Can I file the complete FORM GSTR-7 using Offline Utility?
\nA. No. Filing can take place only online on the GST Portal.
\nThe details of Table 3 and Table 4 can be prepared offline but remaining activities like
\npayment and filing has to be completed on the portal only.
\nOnce the json file is uploaded on the GST Portal, one may continue to proceed to file.
\nLiabilities will then be computed and after making payment, return c<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nA. No. One can download the FORM GSTR-7 Offline Utility under 'Download' section
\nwithout logging in to the GST Portal.
\nQ51
\nA.
\nQ52
\nDo I need to login to GST Portal to upload the generated JSON file using FORM
\nGSTR-7 Offline Utility?
\nYes. You must login in to the GST Portal to upload the generated JSON file using FORM
\nGSTR-7 Offline Utility.
\nWhat are the basic system requirements\/ configurations required to use FORM
\nGSTR-7 Offline Tool?
\nA. The offline functions work best on Windows 7 and above and MS EXCEL 2007 and above.
\nQ53 Is Offline utility mobile compatible?
\nA. As of now FORM GSTR-7 Offline utility cannot be used on mobile. It can only be used on
\ndesktop\/laptops.
\nQ54 How many TDS details of the suppliers can I enter in the offline utility?
\nA. One can enter maximum 10,000 rows of TDS details of the suppliers in the offline utility.
\nI am a tax deductor. I've made payment for four different products to one of my
\nQ55 suppliers. S<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nA. No, any negative value cannot be entered in the utility. However, decimal values can be
\nentered. All decimal values would be rounded off to two decimal places. But, total liability
\nwill be rounded off to whole number.
\nQ58
\nI've uploaded GSTR-7 JSON File and it was processed without error. Do I need to
\ndownload the generated file?
\nA. No, it is not necessary to download the GSTR-7 JSON File processed without error. One can
\ndownload it only if he wants to update, add or delete the details added previously. One can
\ndownload the uploaded file for record if so required.
\nQ59
\nInterest, Penalty & Late Fee
\nMr A, a DDO has submitted return for the month of November upon payment of
\nliability as shown in such return on 11.12.2018. Is he liable to pay interest?
\nA. Mr. A has to pay interest for one day as return is to be filed by 10 th December, 2018.
\nQ60
\nMr X has deducted Rs 1 lakh of TDS in Nov'18. He deposits Rs 70,000\/- on
\n10.12.2018 & the rest of Rs 30,000 on 30.01.2019. He submits <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nthe Government under sub-section (2) of section 51 [section 122(v) refers]. He is liable
\nto penalty of Rs.1,00,000\/-.
\n36
\n36
\nTDS Certificate &Benefit of TDS to the deductee
\nAs a DDO I have deducted tax while making payment to various Vendors. I have
\nQ61 deposited the amount in the appropriate Government A\/c & also filed return
\nwithin stipulated time. Have I discharged all my liabilities relating to TDS?
\nA. No. A system generated TDS certificate in FORM GSTR-7A mentioning therein the value on
\nwhich tax is deducted, and amount of tax deducted and other related particulars shall be
\navailable for download from the portal by deductee.
\nQ62 How can a supplier download the TDS certificate in FORM GSTR 7A?
\nA. TDS certificate can be downloaded by access the www.gst.gov.in URL and using the
\nfollowing path: Login to the GST Portal with valid credentials. Navigate to Services > User
\nServices > View\/Download Certificates option.
\nQ63 How many TDS Certificat<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n