All about GST TDS applicable from 1/10/18

about GST TDS

Section - 51 of CGST Act
Effective Date: 01.10.2018

What Section Says:

Persons notified vide Notification No. 33/2017 - Central Tax, shall be liable to deduct tax @1% under CGST and 1% under SGST from the payment made or credited to the supplier of taxable goods or services or both if the total value of such supply, under a contract,EXCEEDS TWO LAKH AND FIFTY THOUSAND RUPEES (Rs. 2,50,000).

Notified persons 33/2017:

(a) 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 percent or more participation by way of equity or control, to carry out any function;

(b) Society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860);
(c) Public Sector Undertakings

Registration Requirements: The person mentioned in above notification have to take separate Registration (REG 7) under GST Act as TDS Deductor.

Time limit to deposit tax

GST TDS Deductor shall deposit tax within ten days after the end of the month in which such deduction is made.

Rate of interest in case of default in deposit
Rate of interest: interest needs to be paid @18% p.a. in case of default in payment of tax deducted.

Particulars & time of issuance of Certificate of deduction of tax:

GST TDS Deductor shall issue certificate within five days of crediting the amount so deducted to the Government with the following particulars:

i. the contract value,
ii. rate of deduction,
iii. amount deducted,
iv. amount paid to the Government
v. Other particulars as may be prescribed.

Late fees for non-issue of certificates as mentioned above:

100/- rupees per day, maximum five thousand rupees. Late fees applicable from the day after the expiry of such five days period until the failure is rectified.

RETURNS TO BE FILED BY DEDUCTOR (GSTR 7):

The person deducting tax is required to file a TDS return in form GSTR-7 within 10 days from the end of the month.

Note: When GSTIN of the unregistered supplier is not available, their name can be mentioned.

Example of Accounting of GST TDS:

	Eg: Bill Received from  "A"(Contractor)	354000
	Basic Amount	300000
	CGST 9%	27000
	SGST 9%	27000
	Total	354000
	Need to pass the bill as follows:
	Bill Amount	300000
	GST @ 18%	54000
	Gross	354000
	Income Tax TDS  Eg: 2%	6000
	CGST TDS @ 1%	3000
	SGST TDS @ 1%	3000
		342000
	Entries
	Payt To Vendor
1	"A" A/c Dr	342000
	To Bank A/c	342000
	Booking Expenditure
2	Expenditure A/c- Dr	300000
	GST Receivable A/c - Dr	54000
	To
	"A" A/c	342000
	Income Tax TDS Payable	6000
	CGST Payable	3000
	SGST Payable	3000
	Payt of TDS (to Government)
3	Income Tax TDS Payable- Dr	6000
	CGST Payable - Dr	3000
	SGST Payable - Dr	3000
	To
	Bank A/c	12000