Deductors in GST Collections
-Dr. Lalit Kumar
More the collection, more the
economic growth by utilizing the collected revenues for development of the
State / UT. No doubt, the collection of Central Government will automatically
increase, if deductors play their roles fairly. How the GST Act is becoming
milestone in the Economic Development today? How Deductors are playing crucial
role in increasing collections? How Financial Management is playing its role in
making a developed nation?
When to deduct TDS on GST?
As per Section 51, it is the duty of Government Agencies
(Deductor) or any other person notified in this regard, to deduct ‘Tax
Deduction at Source (TDS)’ from the payment made or credited to the supplier
(Deductee) of taxable goods or services or both, where the total value of such
supply, under a contract exceeds Rs. 250000/- (Rs. two lakh and fifty
thousand).
What to do after deduction TDS on GST?
The TDS on GST is deposited by creating Challan on the portal
of GST. The amount can be transferred through NEFT to RBI or using Cheque to be
deposited in the authorized banks using Challan generated from the portal of
GST. All Drawing and Disbursing Officers (DDOs) are playing crucial role by
registering themselves as GSTIN Deductor on the portal of GST and processing
the payments of TDS on GST on time.
Further, it is required to file a return known as GSTR-7 by
the deductor by 10th of the following month giving the details of
deductions and deductees. After submission of the return, the amount of TDS on
GST be reflected in the GSTIN of supplier.
Even the deductor requires to issue a certificate to the
deductee mentioning therein the contract value, rate of deduction, amount
deducted, etc. known as GSTR-7A.
Penalties Provisions for non-compliance by DDOs:
It is required to deduct TDS on GST on certain
transactions and thereafter pay the same by using GST Challan. In case, the DDO
fails to make payment of the amount deducted as TDS on GST, it is required to
pay the tax with interest u/s 50 (1) and 51 (6).
After deposit of TDS on GST, it is
required to furnish the GSTR-7 by due date, in case, the DDO fails to furnish
the GSTR-7 on within due date; then late fee is required to be paid by the DDO.
The late fee will be Rs. 100 per day on CGST and Rs. 100 per day on SGST.
Maximum late fee can be up to Rs. 5000 in CGST and Rs. 5000 in SGST.
