Madeeasy Management Services LLP

GST TDS* (Another Tedious job)

CBIC has issued notification 50/2018-CT dt. 13.09.2018 to prescribe enactment of GST-TDS mechanism w.e.f *1st October 2018* as per section 51 of CGST Act.

As per this section *TDS is to be deducted @ 2%* (CGST + SGST) from the payment of the supplier of Goods or Service or both (Deductee) by following persons (Deductor):

(a) a department or establishment of the Central Government or State Government; or

(b) local authority; or

(c) Governmental agencies; or

(d) 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 per cent. or more participation by way of equity or control, to carry out any function;

(e) Society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860);

(f) *public sector undertakings*.

The amount of TDS deducted shall be credited in the cash ledger of supplier / deductee on monthly basis after payment and filing of their monthly TDS return by deductor in Form GSTR-7. This amount can be used for payment of hist output tax liability.

Note:
1. The deductee will be issued certificate of deduction of TDS in Form GSTR-7A after filing of return.
2. It is applicable where total value of supply *under a contract exceeds Rs. 2,50,000/-*,
3. TDS is *not required* to be deducted in case of *inter-state transaction*.

FLASH. Notifications/Circulars issued today.

GST Circular No 61.. E-way bill in case of storing of goods in godown of transporter.

GST Circular No 60.. Processing of refund applications filed by Canteen Stores Department.

Clarification on refund related issues.

GST Circular No 58.. Recovery of arrears of wrongly availed CENVAT credit under the existing law and inadmissible transitional credit.

Circular No 57.. Scope of Principal-agent relationship in the context of Schedule I of the CGST Act.

CGST Notification No 42.. Seeks to extend the time limit for making the declaration in FORM GST ITC-01 for specified classes of taxpayers.

CGST Notification No 41 Seeks to waive the late fee paid for specified classes of taxpayers for FORM GSTR-3B, FORM GSTR-4 and FORM GSTR-6.

CGST Notification No 40 Seeks to extend the time limit for making the declaration in FORM GST ITC-04.

CGST Notification No 40 Seeks to extend the time limit for making the declaration in FORM GST ITC-04.

CBIC inserts provisions for dropping of proceedings upon payment of tax dues with interest & late fees.

Annual returns GSTR-9 & GSTR-9A notified.

Provision of reporting GST compliance and GAAR under clasue 44 & 30C respectively of Form 3CD have been deferred till March 31, 2019. i.e. not applicable for form 3CD filed till 31/03/2019.