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.
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 firstname.lastname@example.org)