Employees Provident Fund Organization
(Ministry of Labour & Employment, Govt. of India)
Head Office
Bhavishya Nidhi Bhawan, 14-Bhikaji Cama Place, New Delhi – 110066
No. PDU/4(3)2019/7980
Date: 01 Oct 2019
To,
The Zonal ACCs/Director (PDNASS)/RPFCs in-charge,
All Zonal Office/Regional Offices/ZT1s/NDC/ASD of Head Office.
Subject:- Deductions and Deposits of TDS by the DDOs under Section 51 of GST Act 2017 – Regarding.
Reference: (i) GOI, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs Notification No. 50/2015-Central Tax Dated: 13.09.2018(Copy enclosed).
(ii) CBIC Circular No. 65/39/2013-DOR (F.No.S.31011/11/2018-ST-I-DoR Dated: 14.09.2013 (Copy enclosed).
Sir/Madame,
Please refer to the subject and references cited above.
2. Vide Notification under reference above, the Union Government had notified the 1st day of October, 2018, as the date on which the provisions of section 51 of the CGST Act-2017 shall come into force.
3. To elaborate further, Section 51 of the aforesaid Act provides for deduction of tax by the Government Agencies (Deductor) or any other person to be notified in this regard, from the payment made or credited to the supplier (Deductee) of taxable goods or services or both, where the total value of such supply, under a contract exceeds Rs. 250000/- (Rs. two lakh and fifty thousand). The sum so deducted as tax under this section shall be paid to the Government by the deductor by 10th of the following month along with a return in Form GSTR-7 giving the details of deductions and deductees. Furthermore, the deductor has to issue a certificate to the deductee mentioning therein the contract value, rate of deduction, amount deducted, etc.
4. As per Section 51 of CGST Act 2017, deductor shall deduct the tax amount from the payment made to the supplier of goods or services or both and deposit the tax amount so deducted with the Government account through NEFT to RBI or a cheque to be deposited in one of the authorized banks, using Challan on the GSTN Portal. In addition, the deductors are entrusted with the responsibility of filing return in Form GSTR- 7 on the GSTN Portal for every month in which deduction has been made. Benefit of deduction shall be made available to the deductees on the basis of return filed in Form GSTR- 7 by the deductors. All the DDOs who are performing the role as deductors have to register with the GSTN Portal and get the GST Identification Number (GSTIN).
5. For payment processing of Tax Deduction at Source under GST, two options are available as follows:-
Option I: Generation of Challan for every payment made during the month.
Option II: Bunching of TDS deducted from the bills on weekly, monthly or any periodic manner.
For more details on payment processing, CBIC Circular under reference above may please be referred to.
6. At any periodic interval, when DDO needs to deposit the TDS amount, he will prepare the CPIN (Challan) on the GSTN Portal for the amount. While generating the CPIN, the DDO will have to select mode of payment as either (a)NEFT/RTGS or (b) OTC. In the OTC mode, the DDOs will have to select the Bank where the payment will be deposited through OTC mode (Over the Counter Mode)
7. The DDOs are obliged to ensure maintenance of all TDS deductions effected during the month in a Register in the format prescribed under Annexure ‘A’ appended to CBIC Circular dated 14.09.2018. The register will come handy at the time of filing Monthly Return (FORM GSTR-7) by the DDO. The DDO may also make use of the offline, utility available on the GSTN Portal for the purpose.
8. Standard Operating Procedure issued by GST Council is available on the link given hereunder for guidance:-
http://www.gstcouncil.gov.in/sites/default/files/faq/28092018 SOP ON TDS.pdf
{This issues with the approval of Central P.F. Commissioner in consultation with FA&CAO and ACC(HQ)(Legal)}
Enclosure: As above.
Your Faithfully,
(A. Kumar)
Regional P. F. Commissioner-I (PDU)
