• A TDS is applicable to department of central government or state government, local authority, governmental agencies and some notified persons notified by government.
  • A TDS deductor has to compulsorily register without any threshold limit.
  • TAN already issued by IT department can be used while applying for GST registration.
  • No tax deduction if the location of supplier and place of supply is different from the state of the registration of the recipient.
  • The tax would be deducted at 2 per cent of the payment made to supplier of taxable goods or services, e.,1 per cent CGST +1 per cent SGST/UTGST or 2 percent IGST.
  • TDS is applicable if the total value of supply of goods or services , under a contract, exceeds Rs. 2.5 lakh.
  • TDS is calculated on the value excluding CGST, SGST, UTGST, IGST and cess indicated in the invoice.
  • TDS is deducted at the time of making payment to the vendor.
  • Deductors need to remit such TDS collected by the 10th day of the month succeeding the month in which TDS was collected.
  • Deductors require to file TDS return in form GSTR-7 WITHIN 10 days from the end of the month.
  • Deductors require to issue TDS certificate in form GSTR-7A to the deductees within 5 days of depositing the tax to the government.
  • If the deductor does not issues TDS certificate within 5 days of remmitance, the deductor has to pay a late fee of Rs. 100 per day from the 6th day until the day he furnishes the certificate subject to the maximum late fee of Rs.5000.
  • Rate of interest for delayed payment is upto 18% p.a.the exact rate of interest payable is yet to be notified.
  • The refund to the deductor or the deductee arising on account of excessor erroneous deduction shall be dealth with in accordance with the provisions of sec 54, provided that no refund to the deductor shall be granted, if the amount deducted has been credited to the electronic cash ledger of the deductee.


-Manisha Gaygwal (Aricle Assistant)