The TDS provisions under the goods and services tax (GST) were brought into effect from October 1, 2018. GSTR 7, the monthly return form under GST for all the taxpayers who account all the tax deducted at source. The GSTR 7 is due on 10th of every next month in a particular tax period.
According to the CGST Act, the notified entities under Section 51 are required to collect TDS at 2 per cent on payments for supply of goods or services or both under a contract value exceeding Rs 2.5 lakh.
During the initial phase of GSTR-7 applicability, many issues were faced on GST portal with regard to acceptance of tax deducted for claiming credit/ benefit by the deductee and generation of TDS certificates. Even after accepting the transaction by the Deductee, when the deductor is trying to generate TDS certificate, the portal was unable to generate TDS certificate, and is reflecting error “No record found”.
This error on the screen created much of hassle between the Tax deductors & Deductee during the initial month of applicability of TDS provisions of GST.
As a result, the government has extended the due date of filing tax deducted at source (TDS) returns under GST laws for the October-December period till January 31, 2019.
The Finance Ministry, through a notification, extended the due date for filing TDS returns under GST for the October-December 2018 period, till January 31, 2019.