TDS_GST deducted by the deductor, the deductee can utilize the same for payment of out liability of GST or can apply for the refund as per section 48 of the Revised Model GST Law. The deductor can also apply for the refund under section 48 of the Revised Model GST Law.
The deductor has to issue a certificate for the amount deducted on account of TDS_GST to the deductee within 5 days of payment of tax to the respective governments. In case, if the deductor defaults in this, he has to pay a late fee of Rs 100 per day till the certificate is issued. There is a maximum cap of Rs 5000 which can be collected as late fee.
The work at the GSTIN is going at the speed of light for making the reporting seamless and online under GST. A few days back the GSTIN has released the list of selected GSP’s (GST Suvidha Provider) and now they have released the screenshots of the screens under GST for Returns and Payments. The basic reason for them to release these screens is to give a basic idea of the screens under GST and how simple and ease it will be for the tax payers.
The mock-up screens can be viewed from here
Every Tax Deductor under GST for TDS_GST has to file a monthly return called GSTR – 7 and basis of this return, part C for GSTR – 2A will be auto-populated for the deductee.
The tax recovered under GST as TDS_GST by the deductor has to be paid to the Government within 10 days from the end of the month.
The amount of TDS Deducted by the Deductor is available as input tax credit for the deductee once the TDS_GST is remitted by the deductor to the tax authorities.
The threshold limit for applicability of deduction of tax at source is reduced from Rs 10 Lacs to Rs 5 Lacs in the Revised Model GST Law released in November 2016.