X

Process of Acceptance of TDS Credit by Deductee under GST

Section 51 of the CGST/SGST Act 2017, Section 20 of the IGST Act, 2017, Section 21 of the UTGST Act, 2017 provide for Tax Deduction at Source( TDS) . GST Council in its 28th Meeting held on 21-07-2018 recommended the introduction of TDS From 01.10.2018.

CA Debasis Sahoo

Section 51 of the CGST/SGST Act 2017, Section 20 of the IGST Act, 2017, Section 21 of the UTGST Act, 2017 provide for Tax Deduction at Source( TDS) .  GST Council in its 28th Meeting held on 21-07-2018 recommended the introduction of TDS From 01.10.2018.

Following would be the deductors of tax in GST under section 51 of the CGST Act, 2017 read with notification No. 33/2017-Central Tax dated 15.09.2017:

(a) a department or establishment of the Central Government or State Government; or

(b) local authority; or

(c) Governmental agencies; or

(d) an authority or a board or any other body,-

(i) set up by an Act of Parliament or a State Legislature; or

(ii) established by any Government, with fifty-one per cent. or more participation by way of equity or control, to carry out any function; or

(e) a society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of1860);

The Details of situation where TDS is applicable or Not  and the applicability is elaborated through Standard Operating Procedure published by CBEC.

https://taxguru.in/goods-and-service-tax/tds-on-gst-faqs-sop-return-registration-penalty-interest-rate.html

Now w.e.f 01.10.2018 any eligible payment received from the above mentioned persons where contract price exceeding ` 2.50 Lakhs , [1% CGST & 1% SGST/UTGST ( In case of Intra State Supply of Goods / Services)] or [2% IGST ( In case of Inter State Supply of Goods / Services) ]  TDS will be deducted.

After deduction all the above persons (i.e. Deductor)  are required to file GSTR-7 before 10th of Succeeding month ,therefore, the GST TDS Deducted during October 2018 need to be paid & return to be filled before 10th of November 2018.

As far as Deductee is concerned, the deductee need to Accept/ Reject the TDS/TCS Credit on the GSTIN portal by filling TDS / TCS online.

Therefore, for availing the GST TDS Deducted by the above eligible deductors , all the deductee need to follow  file the TDS/TCS Credit Received which is elaborated below.

Please select the TDS which you want to accept , after selection then press Accept

After acceptance the TDS Amount will be reflected under TDS Received , Then Press PROCEED TO FILE ,

After PROCEED TO FILE,  proceed s for filling of TDS/TCS Received

The Amount Will appeared in CASH Ledger ,Which can be utilized for payment of balance amount for the reporting period.

(Author may be contacted at cadebasissahoo@gmail.com)

View Comments (8)

  • As per Rule TDS certificates to be downloaded by the deductor within 5 days of filing GSTR-7. Whether it can be downloaded before acceptance by the deductee. Further in our one case of deductor, when we go for downloading GSTR-7A from his portal ( Deductor) from menu user service> download certificates> TDS certificate, there is a requirement of 'GSTIN of Deductor', while it should be ' Deductee". Kindly guide on the query.
    Thanks

  • I have to file return for the month of October 2018 and in this month at least three persons have deducted TDS under GST and one person has filed the return whose credit is being reflected. Can I accept that TDS credit and file my return and for others, can I take credit in the month of November 2018) later on when they file the TDS Return or I have to wait for filing the return for the month of October 2018. I personally feel that I should take credit for the TDS certificate which are appearing and take credit of the remaining TDS in the following months when they appear. Please reply.

  • Ashok Sharma Advocate
    The process of downloading TDS Certificate is very cumbersome and unnecessary clicks and steps.

  • Sir,
    What to do when TDS Credit is being reflected in GSTR2A but the same is not being reflected in GSTR7A for the purpose of accepting the TDS Credit.Please provide a solution so that I can accept the TDS Credit and claim that TDS amount.

1 2
X

Headline

Privacy Settings