With effect from 1st October 2018, all the Departments or Establishments of the Central Government or State Government or local authority or Governmental agencies or other notified persons, who were deducting TDS under VAT, now shall start deducting TDS under GST at the rate of 1% of CGST and 1% of SGST on such amount payable to the supplier of goods or services.
The deductor shall register themselves in the GSTN website www.gst.gov.in using their Income Tax TAN number which is used for deducting the Income Tax TDS.
The amount deducted shall be paid to the Government by the deductor within ten days after the end of the month in which such deduction is made.
The deductor shall file GST-TDS return in FORM GSTR-7 within 10 days from the closure of the month in which it is deducted.
The deductor shall issue to the Deductee a GST-TDS certificate GSTR-7A within five days of filing the GST TDS Return. A penalty of Rs.100 per day will be leviable if the certificate is NOT issued.
Wherever there is any doubt, reference may be made to the provisions of the GST Act & Rules, relevant circulars and/or notifications.
– N.D.Shreenivaas, Bhavani Associates, Mysuru
This post was published on September 30, 2018 6:21 pm