GST Network (GSTN) has issued an advisory regarding reporting TDS deducted by scrap dealers in October 2024, following Notification No. 25/2024-Central Tax. Effective from October 10, 2024, registered recipients of metal scrap (classified under Chapters 72 to 81 of the Customs Tariff Act, 1975) must deduct TDS under Section 51 of the CGST Act, 2017. However, some taxpayers faced difficulties in filing TDS for October due to their GST registrations being approved only in November 2024. Under the current GST system, returns for tax periods before the registration month cannot be filed. To address this, taxpayers registered in November but who deducted TDS in October are advised to report the consolidated TDS amount for the period from October 10, 2024, to November 30, 2024, in their November GSTR-7 return. This adjustment ensures compliance without disrupting the system’s existing functionality. Taxpayers seeking assistance can reach out to the GSTN helpdesk for support.
Goods and Services Tax
Government of India, States and Union Territories
Advisory for Reporting TDS Deducted by scrap Dealers in October 2024
Nov 26th, 2024
As per Notification No. 25/2024-Central Tax, effective from 10.10.2024, any registered person receiving supplies of metal scrap classified under Chapters 72 to 81 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), from another registered person, is required to deduct TDS under Section 51 of the CGST Act, 2017.
2.In this regard various tickets have been received on the issue that taxpayers are unable to report TDS deducted in the month October 2024 as they are not able to file return for the month of October 2024. This issue has occurred because while the taxpayers applied for GST registration in October 2024 pursuant to the above notification, their GST registrations were approved only in November 2024. Hence, in the return dropdown the month October 2024 is not visible to such taxpayers. This is as per the existing GSTN system design where returns for tax period prior to registration month is not enabled for taxpayers.
3.However, to resolve the issue, taxpayers who were granted registration in November 2024, but deducted TDS in October 2024, are hereby advised to report the consolidated amount of TDS deducted for the period from 10.10.2024 to 30.11.2024 in the GSTR-7 return to be filed for the month November 2024.
For any further assistance, taxpayers may contact the GSTN helpdesk.
Thanking You,
Team GSTN
