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.
Tax Deducted at source is applicable under GST also. It is different from TDS under Income Tax Act. It is applicable on the supply of goods and services as notified by the Government through GST council. Whenever payment is being made to the supplier of goods or services, GST TDS will be recovered / deducted from the payment and then only balance amount is paid.
Maximum Tax Levy under the composition levy has increased from one percent to two and half percent in the revised Model GST Law released in November 2016.
A Taxpayer can obtain registration under Composition Levy if the turnover is less than Rs 50 Lacs and desires not maintain all records as per GST but pay a flat rate of tax at the end of the period. Under this levy, the taxpayer cannot take input tax credit or issue a tax invoice.