By virtue of Section 51 of CGST Act 2017, government has introduced the concept of Tax Deducted at Source under GST, unlike it is there under Income Tax. TDS refers to the tax which is to be deducted when the recipient of goods/ services makes some payments under contract.
Intention behind this seems to be, early and definite tax collection from unorganized sector. The purpose of TDS is just to enable the government to have a trail of transactions and to monitor and verify the compliances.
In this article, we will be understanding, various provisions with respect to GST TDS.
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A. Who Is Required To Be Deduct GST TDS:
- - An authority or a board or any other body [ set up by an Act of Parliament or a State Legislature; or established by any Government ] with 51% or more participation by way of equity or control, to carry out any function;
- Society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860);
- Public Sector Undertakings
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B. Applicable From:
C. TDS Not Required To Be Deducted If
Location of Supplier | Place of Supply | State in which recipient is located | Nature of Supply | Whether GST TDS is to be deduced ? |
|---|---|---|---|---|
Maharashtra | Maharashtra | Maharashtra | Intra State Supply ( CGST + SGST) | YES (1% CGST + 1% SGST ) |
Maharashtra | Maharashtra | Gujrat | Intra State Supply ( CGST + SGST) | No [ This is because supplier of Gujrat cant deduct and pay CGST + SGST of Maharashtra ] |
Maharashtra | Gujrat | Gujrat | Inter State (IGST) | YES (2% IGST) |
D. Procedural Aspect - Due Date for
Payment, Return and Certificate
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E.Individual Supplies Under Contract:
F. COMPULSORY REGISTRATION FOR
GST TDS DEDUCTORS:
G. Clarification With Respect To
Applicability Of TDS -
Circular No. 76/50/2018-GST:
It is clarified that, the provisions of section 51 of the CGST Act are applicable only to such authority or a board or any other body set up by an Act of parliament or a State legislature or established by any Government in which fifty one per cent. or more participation by way of equity or control is with the Government.
Extension Of Due Date For GST TDS Return:
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Penal Provisions Under GST TDS:
NATURE OF DEFAULT | CONSEQUENCES |
|---|---|
TDS not deduced or deducted but not paid | TDS is required to be paid along with interest |
TDS certificate not issued or delayed | Late fee of rs 100/- + rs 100/- per day subject to maximum of rs 5000/- + rs 5000 |
Late filing of TDS return | Late fee of rs 100/- + rs 100/- per day subject to maximum of rs 5000/- + rs 5000 |
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