{"id":5067,"date":"2018-07-25T18:46:10","date_gmt":"2018-07-25T13:16:10","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=5067"},"modified":"2023-09-02T11:24:00","modified_gmt":"2023-09-02T05:54:00","slug":"all-about-gst-tds","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/all-about-gst-tds\/","title":{"rendered":"ALL ABOUT GST TDS"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d9c26a9e3ad\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d9c26a9e3ad\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/all-about-gst-tds\/#Key_takeaways_about_TDS_under_GST\" title=\"Key takeaways about TDS under GST\">Key takeaways about TDS under GST<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/all-about-gst-tds\/#All_About_TDS_under_GST_%E2%80%93_Applicability_Rate_penalties_Provisions\" title=\"All About TDS under GST \u2013 Applicability, Rate, penalties Provisions\">All About TDS under GST \u2013 Applicability, Rate, penalties Provisions<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_takeaways_about_TDS_under_GST\"><\/span><a href=\"https:\/\/carajput.com\/publications\/guidance-and-understanding-tds-on-gst.pdf\"><span style=\"color: #333399;\">Key takeaways about TDS under GST<\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">GST TDS is the system through which a certain percentage of tax is collected at the source of the income. Certain Government Department, Local Authorities, Agencies, and Public Sector Undertaking are required to deduct GST TDS. GST TDS is a dynamic tool for the reduction of tax evasion.<\/p>\n<p style=\"text-align: justify;\">As per Section 51 of the <a href=\"https:\/\/carajput.com\/gst\/gst-consultancy.php\">CGST Act, 2017<\/a> it contains the provisions of TDS under GST. As per the said provisions, the following list of persons are liable to deduct TDS under GST: &#8211;<\/p>\n<ul style=\"text-align: justify;\">\n<li>A department or establishment of the Central Government or State Government<\/li>\n<li>Local authority<\/li>\n<li>Governmental agencies<\/li>\n<li>Such a person or category of persons as may be notified by the Government on the recommendations of the Council.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">the Government introduces the following additional category of the person liable to deduct tax at source, via notification no. 33\/2017 dated 18.09.2017:<\/p>\n<ul style=\"text-align: justify;\">\n<li>An authority or a board or any other body which has been set up by Parliament or a State Legislature or by a government, with 51% equity (control) owned by the government;<\/li>\n<li>A society established by the Central or any State Government or a Local Authority and the society is registered under the Societies Registration Act, 1860;<\/li>\n<li>Public Sector Undertakings.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"All_About_TDS_under_GST_%E2%80%93_Applicability_Rate_penalties_Provisions\"><\/span><a href=\"https:\/\/carajput.com\/learn\/all-about-goods-and-services-tax-tds.html\"><strong><span style=\"color: #333399;\">All About TDS under GST \u2013 Applicability, Rate, penalties Provisions<\/span><\/strong><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #333399;\"><strong>TDS Rate under <a style=\"color: #333399;\" href=\"https:\/\/carajput.com\/gst\/gst-consultancy.php\">GST<\/a><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">The TDS rate under GST is 2%. It means that the deductor has to deduct TDS @ 2% on the payment made or credited to the deductee for the supply of taxable goods or services or both.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #333399;\"><strong><a style=\"color: #333399;\" href=\"https:\/\/carajput.com\/gst\/gst-registration.php\">GST Registration<\/a> mandatory<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">It is mandatory to obtain GST registration for the person who is liable to deduct TDS as per the provisions of section 51 of the CGST Act, 2017. If GST registration is not taken, then the exemption limit is not applicable to such persons. A unique feature of GST registration is that PAN is not compulsory for obtaining GST registration, however, GST registration can be obtained on the basis of existing Tax Deduction and Collection Account Number (TAN).<\/p>\n<p><strong><em><u>Read more about: <\/u><\/em><em><a href=\"https:\/\/carajput.com\/blog\/what-is-core-business-activity-in-gst\/\">What is core Business Activity GST<\/a><\/em><\/strong><\/p>\n<p><strong><em><u>Read more about<\/u><u>: <\/u><\/em><em><a href=\"https:\/\/carajput.com\/blog\/all-about-gst-offenses-penalties-appeals\/\">All about GST Offenses, Penalties, and Appeals<\/a><\/em><\/strong><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #333399;\"><strong>Liability for Deducting TDS under GST<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">GST TDS is required to be deducted when the total value of supply, under a contract, exceeds an amount of INR 2,50,000\/-.<\/p>\n<p style=\"text-align: justify;\">For the purpose of deduction of GST TDS, the amount of value of supply shall be excluding the amount of central tax, state tax, union territory tax, integrated tax, and cess as mention in the invoice.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #333399;\"><strong>GST TDS Non-Applicable <\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">When both the supplier and the place of supply are different from the recipient, no tax deduction at the source would be made.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #333399;\"><strong>Payment of<a style=\"color: #333399;\" href=\"https:\/\/carajput.com\/gst\/gst-consultancy.php\"> GST<\/a> TDS to which government<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">The deductor of TDS is required to deposit the amount deducted to the Government on the 10th day of the succeeding month in which the tax is deducted. The payment of TDS should be made to the respective Government i.e. IGST and CGST should be deposited to Central Government and SGST should be deposited to State Government.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #333399;\"><strong>Penalty for not issuing a certificate within the time limit<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">TDS certificate in FORM GSTR-7A is to be issued by the deductor to the deductee within a period of 5 days of crediting the amount to the Government. In case the deductor fails in issuing the certificate in the required time limit, he would be liable to pay a late fee of INR 100\/- per day from the expiry of the 5th day till the date certificate has been issued. The maximum amount of late fee payable would be INR 5,000\/-.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #333399;\"><strong>GST TDS Credit<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/carajput.com\/gst\/gst-consultancy.php\">GST<\/a> TDS deducted by the deductor and deposited to the Government shall be shown in the electronic cash ledger of the deductee. The deductee would be able to use the said amount against payment of tax.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #333399;\"><strong>Liability of Return Filing<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">The person deducting TDS is liable to file GST return in FORM GSTR-7 within a period of 10 days from the end of the month.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #333399;\"><strong>GST TDS Refund<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">When <a href=\"https:\/\/carajput.com\/tds.php\">TDS<\/a> has been deducted in excess of the amount actually to be deducted, then, in such case deductor or deductee can claim for refund of such excess TDS. However, if the excess amount deducted is already credited in the electronic cash ledger of the deductee then no refund will be given.<\/p>\n<p>Read our blogs :<\/p>\n<p><strong><a href=\"https:\/\/carajput.com\/publications\/guidance-and-understanding-tds-on-gst.pdf\" data-cke-saved-href=\"https:\/\/carajput.com\/publications\/guidance-and-understanding-tds-on-gst.pdf\">Complete Guidance on TDS applicable on Goods and Services<\/a><\/strong><a href=\"https:\/\/carajput.com\/publications\/guidance-and-understanding-tds-on-gst.pdf\" data-cke-saved-href=\"https:\/\/carajput.com\/publications\/guidance-and-understanding-tds-on-gst.pdf\"><strong>\u00a0Tax\u00a0<\/strong><\/a><\/p>\n<p><strong><a href=\"https:\/\/carajput.com\/publications\/all-the-important-due-date-of-taxation-compliance-under-the-july-and-aug-2020.pdf\" data-cke-saved-href=\"https:\/\/carajput.com\/publications\/all-the-important-due-date-of-taxation-compliance-under-the-july-and-aug-2020.pdf\">Summary of Important Due date of July and Aug 2020<\/a><\/strong><\/p>\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>Key takeaways about TDS under GST GST TDS is the system through which a certain percentage of tax is collected at the source of the income. Certain Government Department, Local Authorities, Agencies, and Public Sector Undertaking are required to deduct GST TDS. GST TDS is a dynamic tool for the reduction of tax evasion. As &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172,4],"tags":[5487,5497,5491,5499,5488,5492,5493,5489,5495,5486],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5067"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=5067"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5067\/revisions"}],"predecessor-version":[{"id":25349,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5067\/revisions\/25349"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=5067"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=5067"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=5067"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}