The Central Board of Indirect Taxes and Customs (CBIC) has issued guidelines for the deduction and deposit of TDS by the DDOs under the Goods and Services Tax regime.
Last week, the Central Government has notified that the provisions of Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) under the GST regime will kick start from 1st October 2018.
As per the Act, every deductor shall deduct the tax amount from the payment made to the supplier of goods or services or both and deposit the tax amount so deducted with the Government account through NEFT to RBI or a cheque to be deposited in one of the authorized banks, using challan on the common portal. In addition, the deductors have entrusted the responsibility of filing return in FORM GSTR-7 on the common portal for every month in which deduction has been made based on which the benefit of deduction shall be made available to the deductee. All the DDOs in the Government, who are performing the role as deductor have to register with the common portal and get the GST Identification Number (GSTIN).
The circular issued by the Board today suggests two options for payment process of Tax Deduction at Source. They are, Individual Bill-wise Deduction and its Deposit by the DDO and – Bunching of deductions and its deposit by the DDO.
In the first option, the DDO will have to deduct as well as deposit the GST TDS for each bill individually by generating a CPIN (Challan) and mentioning it in the Bill itself.
In the second option, the DDO will have to deduct the TDS from each bill, for keeping it under the Suspense Head. However, deposit of this bunched amount from the Suspense Head can be made on a weekly, monthly or any other periodic basis.
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