Seminar organised on Topic “TDS Under GST”
A seminar was organized today on the topic of “TDS under GST” by the Excise & Taxation Department, UT, Chandigarh under the direction of Sh. Parimal Rai, IAS, Adviser to the Administrator, UT Chandigarh and Finance Secretary, Sh. A.K. Sinha, IAS at PG Government College for Girls, Sector-42, Chandigarh. The seminar was attended by all DDO’s.
The Ministry of Finance, Department of Revenue, Government of India has notified the TDS provisions and the same has been implemented w.e.f 01st October, 2018. During the seminar the DDO’s were informed that they are responsible for deducting tax while making / crediting payment under GST, furnishing FORM GSTR-7 (Monthly Return by 10th of following month) and issuing TDS certificate in FORM GSTR-7A.
It was further shared that the TDS will be deducted in the following cases:
- Total value of taxable supply (excluding GST & Cess) is more than Rs.2.5 Lakh under a single contract
- If both taxable supply and exempted supply under single contract, if value of taxable supply (excluding GST & Cess) is more than Rs.2.5 Lakh
- If location of the supplier and place of supply in same State/UT, it is an intra-State supply & TDS @ of 1% each under CGST Act and SGST/UTGST Act
- If location of the supplier is in State A and place of supply is in State B, it is an inter-State supply and TDS @ 2% under IGST Act shall be deducted, if the deductor is registered in State B or A
- If advance is paid to a supplier on or after 01st October, 2018 for taxable supply whose value under contract is more than Rs.2.5 Lakh
- In case person registered as a tax deductor does not make any payment to the contractor in a month, then the tax deductor need not file return in form GSTR 7 of the said month.
The TDS will not be deducted in the following cases:
- Total value of taxable supply (excluding GST & cess) is not more than Rs.2.5 Lakh under a single contract
- Exempt or Non-GST supplies
- Where the location of the supplier & place of supply is in a State(s)/UT(s) which is different from that of deductor
- Activities & transactions specified in Schedule III
- Where the payment relates to a tax invoice that has been issued before 01st October, 2018
- Amount paid in advance prior to 1st October, 2018 and tax invoice issued on or after 01st October, 2018, to the extent of advance payment
- Reverse Charge supplies of goods or services
- Supply of goods or services by an unregistered supplier
Other salient features of TDS provisions which were also shared during the seminar were:
- Deducted amount to be paid within ten days after the end of month in which payment deducted along with furnishing return in FORM GSTR-7
- A Certificate in FORM GSTR-7A to be provided to deductee within five days of crediting the amount so deducted to the Government
- TDS deducted would be credited in electronic cash ledger of deductee
- Late fee for not furnishing FORM GSTR-7 or FORM GSTR-7A is Rs. 200/- per day (Rs. 100/- each for CGST & SGST/UTGST) subject to a maximum of ten thousand rupees (separate late fees for both forms)
- If any deductor fails to pay to the Government the amount deducted as tax, then, interest and amount in default to be determined as per section 50(1) and section 73/74 respectively.
Present during the seminar were Sh. Rakesh Kumar Popli, PCS, Addl. Excise & Taxation Commissioner, Sh Ramesh Kumar Chaudhary, Assistant Excise & Taxation Commissioner and the ETO’s & ETI’s of Excise & Taxation Department, UT, Chandigarh.