TDS & TCS CA Inter and CA Final

TDS & TCS UNDER GST
SECTION 51- TAX DEDUCTION AT SOURCE (TDS)
SUPPLY > 2.5 Lakh Take separate & Compulsory

Supplier (Deductee) Recipient (Deductor)
registration
Payment made to supplier 300000 – 60000
Sale Rs. 300000 (2% of 3L) = 294000
Deduct 2% (1+1)
NOTE: Supplier can avail the TDS in E-Cash Ledger
TDS on value of supply
WHO: SHALL DEDUCT
Deposit 6000 @ GST Portal
Following person shall deduct tax u/s 51
 CG/SG Dept./Establishment. (Except: Ministry of defence)

WHEN: TO DEDUCT TDS
 Local authority. Supply of taxable G/S Under a contract exceeds >
 Govt. agencies 250000 (excluding GST & Cess)
 PSU Note : Invoice value doesn’t matter.
 Society Established. by CG /SG/LA under Society Act HOW MUCH: TO DEDUCT
 Authority/board/other body set up with 51% equity 1% CGST & 1% SGST or 2% IGST on payment
concern with govt. (Established. Under any ACT or by made/credited to supplier (QA POINT) whichever. is
govt.) earlier.
NO TDS: IN FOLLOWING CASES:
 Supply of exempt (Nil rate/exempt/non-taxable) Goods /Service

 Supply under RCM
 If supply made between above persons only
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 When payment made to unregistered supplier
 Supplier place & Place of supply in same state, but recipient place in other state.
PROCEDURE:
 Time limit to deposit up to 10th day (GSTR-7) of next month

 TDS certificate in GSTR 7A provide to deductee within 5 days of
deposit
 TDS deducted reflected in E-Cash Ledger of deductee (QA
POINT)
 Interest on delay deposit of TDS: 18% p.a. & also recovery
proceeding-initiated u/s 73 & 74
 Late filling of TDS Return/failure to issue TDS certificate within
5 days of depositing late fee of Rs.100/day & max. Rs.5000/-.
 Deductor/deductee can claim refund of excess/erroneous
deduction, But if deducted amount is already credited to cash
ledger of supplier, same shall not be refunded.
EXAMPLE CASE SCENARIOS :
STUDENTS NOTES:
SECTION 52 TAX COLLECTION AT SOURCE (TCS)
Take registration in each state/ UT
Where obligation arises
FLIPKART
ECO
Deposit TCS Rs.100/-
GOVERNMENT
SUPPLIER Supply of Goods or Service RECIPIENT
Note: Supplier can claim TCS Rs. 1000 in his E- cash

Take compulsory registration ledger
(Except: when making supply
of Service up to 20L / 10 L)
WHO: SHALL COLLECT WHEN: TO COLLECT HOW MUCH: TO COLLECT
Every e – commerce operator (not being Where ECO collect consideration on supplier Shall collect CGST 0.5% + SGST 0.5/ IGST 1%
agent) behalf when supply made through it.
On Net Value of taxable supplies (Supplier
wise & Monthly basis)
PROCEDURE: NO TCS: IN FOLLOWING CASES (QA POINT)

1. TCS shall be paid to Govt by ECO within 10 days of Next month (GSTR 8).  Supply of exempt (Nil rate/exempt/non-taxable)
2. ECO file an Annual Statement GSTR-9B before 31st Dec of next year. Goods / services.
3. After Filling of GSTR-8 by ECO supplier can claim TCS, in E-cash ledger.  Supply under RCM
For above point 1,2,3 commissioner may extend the period.

 If supplier of service not liable to registration
(20L/10L)
4. If any discrepancy found by ECO (other than in scrutiny, inspection,
 Supply own product through website owned by him
enforcement proceeding) rectify statement with payment + interest.
 Service covered under 9(5) [THAR]
✓ 30th Nov of Next year Which ever  NO TCS if net value negative / Nil Even Rs. 1 Sale
is Earlier TCS apply
✓ Actual date of filling Annual statement
Note: Exception given under 9(5) where supplier is liable
to registered & pay GST in that case TCS provisions
apply.
ENQUIRY BY GST OFFICE:
 Supplies GSTR-1 must match with ECO GSTR-8 if any discrepancy found  Deputy Commissioner or above rank officer may
shall be communicated to both & rectification should be done in same serve notice, to ECO to furnish details
month otherwise amt + interest shall be added to output tax liability 1. Supplies made through it
supplier. 2. Stock held by supplier with ECO in godown
Aggregate value of Taxable supplies – Taxable supplies returned to supplier /warehouse, & declared as APOB
 Shall furnish information within 15 days of notice.
During Month  If fails penalty up to 25,000.
Except services u/s 9(5)
CLARIFICATION & CIRCULARS:
QUESTION ANSWER QUESTION ANSWER

Whether ECO require to obtain registration in each Yes Is it mandatory for every ECO to No only ECO liable to TCS shall
State/ UT Where supplier listed on their website are get registered ? obtain seperate compulsory
located ? registration.
Can TCS payment be made by Utilising ITC ? No At what time ECO is required to Earlier of supply made or
collect TCS consideration collected
Collection of TCS by tea board of India ? Tea board operate electronic auction system for trading tea across country
Considered as ECO & Shall collect TCS from

 Sellers (i.e. tea producers) on net value of supply of goods i.e. tea
 Auctioneers on net value of supply of services i.e. brokerage
Clarification on (TCS) liability u/s 52 for cases involving multiple E-commerce Operators (ECOs) in one transaction. This circular addresses
responsibilities of buyer-side ECOs and seller-side ECOs in different scenarios, particularly in the context of Open Network for Digital
Commerce (ONDC).
 Circular highlights distinction between the platform-centric model of e-commerce and the ONDC Network, where multiple ECOs may
be involved in single transaction. It clarifies that ECO responsible for collecting TCS and ensuring compliance u/s 52 of depends on
specific scenario. If supplier-side ECO is not supplier of goods/services, supplier-side ECO is liable for compliances & TCS collection. On
other hand, if supplier-side ECO is also supplier, buyer-side ECO is responsible for collecting TCS.
New point : ECO who is required to collect TCS u/s 52 shall follow following special procedure in respect of supply of goods made through it
by Composition registered persons u/s 10
1. ECO shall not allow any inter-State supply of goods through it by said person
2. ECO shall collect TCS in respect of supply of goods made through it by said person and pay to Govt.
3. ECO shall furnish details of supplies of goods made through it by said person in statement in FORM GSTR-8.
New point : ECO who is required to collect TCS u/s 52 shall follow following special procedure in respect of supply of goods made through it
by persons exempted from obtaining registration.
1. ECO shall allow supply of goods through it only if Enrolment number has been allotted on common portal.
2. ECO shall not allow any inter-State supply of goods through it.
3. ECO shall not collect TCS in respect of supply of goods made through it.
4. ECO shall furnish details of supplies of goods made through it by said person in statement in GSTR-8.
5. Where multiple ECO are involved in single supply of goods through ECO platform, "ECO shall mean : ECO who finally releases payment
to said person for said supply made by said person through him".
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TDS & TCS UNDER GST

SECTION 51- TAX DEDUCTION AT SOURCE (TDS)

SUPPLY > 2.5 Lakh Take separate & Compulsory

 CG/SG Dept./Establishment. (Except: Ministry of defence)

NO TDS: IN FOLLOWING CASES:

 Supply of exempt (Nil rate/exempt/non-taxable) Goods /Service

 Time limit to deposit up to 10th day (GSTR-7) of next month

Take registration in each state/ UT

Where obligation arises

Deposit TCS Rs.100/-

SUPPLIER Supply of Goods or Service RECIPIENT

Note: Supplier can claim TCS Rs. 1000 in his E- cash

WHO: SHALL COLLECT WHEN: TO COLLECT HOW MUCH: TO COLLECT

PROCEDURE: NO TCS: IN FOLLOWING CASES (QA POINT)

For above point 1,2,3 commissioner may extend the period.

QUESTION ANSWER QUESTION ANSWER

Considered as ECO & Shall collect TCS from

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