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.
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 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.