The TDS provisions under the Goods and Service Tax (GST) Laws were brought into effect from October 1, 2018.
Wherein the Government has notified certain entities that are required to collect TDS at 1% onpayment made to supplier of goods or services in excess of Rs 250,000. Also, states levy 1% TDS under state laws.
That means TDS rate is 2% (CGST 1% + SGST 1%) in case of intra-state supply and 2% (IGST) in case of interstate supplies.
Further, the persons who are required to deduct TDS under GST are required to file GSTR-7 containing the details of TDS deducted, TDS liability payable and paid, TDS refund claimed etc.
Due date for GSTR-7 filing for a month is on 10th of the following month.
Eg: Due date for filing GSTR-7 for November, 2018 is 10thDecember, 2018.
The Finance Minister through a notification extended the due date for filing TDS returns under GST laws for the period October- December, 2018 till 31stJanuary, 2019.
REASON FOR EXTENSION of DUEDATE OF GSTR-7
There are certain issues which are emerging on GST portal regarding acceptance of tax deducted by the Deductor for claiming credit by the deductee and in generating TDS certificates. The Government needs to tackle the challenges and necessary changes should be made on GST portal so that return can be filed.
PENALTY FOR DELAY IN FILING GSTR-7
If return is not filed on time, thenpenalty of Rs 100 under CGST + Rs 100 under SGST shall be levied.
That means the total penalty will be Rs 200 per day but maximum upto Rs 5,000. There is no late fee on IGST for delay in filing of return.
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