TDS & TCS provisions under GST

From 01st of October 2018 the provision regarding deduction of TDS as well as Collection of TCS made effective;

TDS

  • The requirement of deduction of TDS is on all Public sector undertakings, local authorities, Government bodies, departments, board, authorities agencies etc.
  • Example of supplies which can attract TDS provisions are Procurement of stationery items, toilet articles, towels, furniture, air-conditioning machines, electrical goods, books and periodicals & medicines, etc., Procurement of security services, car rental services, generator rental services, rental services like office building/land taken on rent, maintenance services, rental of machinery, etc.
  • The tax need to be deducted on all taxable supplies received by government departments etc. if the value exceeds Rs. 250000/-. This value will not include tax component charged in the invoice.
  • Separate registration required even if already registered as normal taxpayer. Registration will be on TAN and if receiving taxable supplies form more than one state then need to get registered separately in each state.
  • The rate of tax will be 02% IGST in case of inter state supply and 01% CGST & SGST/UTGST each in case of intra state supply
  • The TDS so deducted need to be deposited by 10th of the following month and TDS certificate in GSTR-7A need to be provided to deductee. Credit for TDS so deducted will be available to deductee.

 

TCS

  • The requirement of collection of TCS is on every E-commerce operator who is supplying goods or services through a digital or electronic network.
  • The requirement of TCS collection arises only if the consideration w.r.t supply is being received by E-commerce operator. So in case if consideration is received by seller itself then TCS collection provision will not be required
  • The tax need to be deducted on net value of taxable supplies i.e. Total sales minus sales return.
  • Separate registration required even if already registered as normal taxpayer. Registration will be on PAN and if performing form more than one state then need to get registered separately in each state.
  • The rate of tax will be 01% IGST in case of inter state supply and 01% CGST & SGST/UTGST each in case of intra state supply
  • The TDS so deducted need to be deposited by 10th of the following month and Credit for TCS so Collected will be available to Seller.

 

           CA Shubhashish Shivam

           +91-9871816804/9911071729

            Cashivam1205@gmail.com