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TDS under GST – A Brief Analysis

With the notification 50/2018 (Central Tax) Dated 13.09.2018, TDS under section 51 of the CGST Act is coming into force from 01.10.2018. The notification provides who all are falling under this provision & the effective date of coming into force of TDS provision under GST, while the principal provisions remain same till date. Accordingly, let us look back & see what are the related provisions related to TDS under GST. The provisions are briefed up below for easy reading purpose, so sit back relax & enjoy the write up!

Governing provisions of TDS under GST:-

Some pointers about TDS under GST:-

  1. 1% CGST (and 1% SGST) of
  2. Amount Paid or Credited to only the intra state supplier, including URD supplier
  3. Of taxable
  4. Goods or services or both
  5. If the value of such supply [Read with point 8, 9 & 10]
  6. Under a contract
  7. Exceeds 2.5 lakhs
  8. Value excludes GST and Cess mentioned in the invoice.
  9. So, Toll, other govt. fees or taxes to be included while calculating value
  10. So, TDS shall not be deducted on the GST component of invoice.
  11. So, TDS shall not be deducted for inter-state sale

GST TDS Return, Dates & GST TDS Credit :-

  • The amount deducted to be paid & return GSTR 7 to be filed by 10th of the following month
  • Details of deduction shall be made available electronically
  • To each of the supplier [Means at GSTIN level]
  • In Part C of R. 2A or R. 4A and,
  • On the common portal
  • Deductee may include the same in FORM GSTR-2. [R. 60(6)]
  • Deductee shall claim Credit in Electronic Cash ledger [Sec 51(5)]
  • TDS certificate to be furnished to the deductee by 15th of the next month as per Rule 66(3)
  • GST TDS Certificate shall be made available to the deductee, electronically on common portal in R 7A

Interest, Penalty, fees under GST TDS

  • Late fee of Rs 100/- under CGST (Similar under SGST), maximum Rs 5000/-
  • If failed to furnish TDS certificate as per Rule 66(3)
  • It means, late fees cannot be levied if GST TDS Certificate is not been issued due to portal or other issue.
  • For non-payment of GST TDS by 10th to attract 18% PA interest.

Extract of GSTR 2A, (it is unclear why IGST column is there in R7 & R7A. Is IGST col in R2A for TCS purpose?):

Author Pralay Chakraborty can be reached at 9705941371 or cp171185@gmail.com for feedback!

Disclaimer: The contents of this document are solely for informational purpose & personal view. It does not constitute professional advice or a formal recommendation. It is also not meant to portray anything against the GST law or any other law of the land for that matter. While due care has been taken in preparing the document, the existence of mistakes & omissions herein are not ruled out. The author does not accept any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document nor for any actions taken in reliance thereon. No part of this document should be distributed or copied without express written permission of the author.  

Read about deduction under section 80TTA here

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