GST: Govt issues FAQs on Registration & Registration as Tax Deductor or Tax Collector

The Central Government issued Frequently Asked Questions (FAQs) covering the FAQs and User Manual for functionalities available to a taxpayer from the GST System Portal and the FAQs for when a Taxpayer wants to register as a Tax Deductor or Tax Collector under the provisions of the GST Acts.

The document will help the users of the GST System Portal to understand and easily use the GST System Portal.

All Governments, Government undertakings, Local Authorities and other notified entities making contractual payments in excess of INR 2.5 Lakhs to suppliers need to register as a TDS under GST.

“In the GST regime, while making such a payment in excess of INR 2.5 Lakhs, the concerned Governments, Government undertakings, Local Authorities and other notified entities needs to deduct 1% under CGST Act and 1% under SGST Act; In case of inter-state transactions, 2% (under IGST Act) of the total payable amount and remit it into the appropriate GST account. Credit of such GST payments will be given to the suppliers,” it said.

In the GST regime, every e-commerce operator needs to collect 1% under CGST Act and 1% under SGST Act. In case of inter-state transactions, 2% (under IGST Act) on the net values of taxable supplies made through the e-commerce operator.

The Registration Application for Tax Deductor/Tax Collector can be filed by the applicant directly by themselves. In GST regime, the registration process is online and any person/entity wishing to register will have to access the GST system for the same.

Any person who wish to get registered as the Tax Deductor/Tax Collector needs to obtain separate registration. The application must be in the form prescribed.

Read the full text of the FAQs below.