TDS & TCS Provisions Under GST (Applicable from 1st October 2018)
Tax Collection at Source (TCS)
- When supplier sell goods or services through portal of electronic commerce operator & payment is collected by operator
Rate of TCS?
- Up to 2% of (sale reduced by sale return)
- Note: Sellers (i.e. on Flipkart/Amazon/Other ecommerce platforms) will get the amount after deducted TCS)
- TCS will be credited in cash ledger
- The all detail of TCS will be available in form GSTR 2A online on GST portal.
Compliance on Electronic Commerce Operator?
- Payment/Return – up to 10th of next month
TDS Deducted at Source (TDS)
Who will deduct?
The TDS will be deducted by specified government bodies on contracts
- Department of Establishment of Government
- Local Authority
- Government Agencies
- Society Established by Government or Public Sector Undertakings
- Where total value of supply exceeds INR, 2,50,000/- (value of supply to exclude – CGST, SGST, IGST or cess)
- On payment made or credited to supplier of taxable goods or services or both
- The TDS will be credited in cash ledger
- TDS Deductor shall provide certificate to deductee in the form GSTR-7A
- Details of TDS will be available in the form GSTR 2A
- 2% (CGST-1% & SGST 1% or IGST 2%)
Compliance on Deductor?
- Payment/Return – Up to 10th of next month
Notes on TDS under GST
- TDS not applicable in case when location of supplier & place of supply is in a state which is different state of recipient.