GST Registration is on for TDS and TCS Deductors | H&R Block | Blog
Can We Claim Tax Benefits on HRA & Home Loan Together?
September 20, 2017
Tax planning lessons
The Nine Rasas of Tax Planning
September 25, 2017

GST Registration is on for TDS and TCS Deductors

The Goods and Services Tax (GST) registration for entities authorised to collect and deduct tax at source has started from September 18, 2017. This followed after the GST Council, chaired by Union Finance Minister Arun Jaitley, at its 21st meeting in Hyderabad decided to open registration of persons responsible to deduct TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) from September 18.

But, the date from which TDS or TCS is to be done will be informed later. According to the Central GST (CGST) Act, the notified entities are supposed to collect TDS at 1% on payments made to suppliers of goods or services over and above Rs 2.5 lakh.

E-commerce companies are supposed to collect 1% TCS when making payment to suppliers under GST that started onwards July 1. After demands from industry, the government in June took the decision to postpone the TDS and TCS provision for the easy rollout of GST.

The GST council has extended the deadline for filing the TRAN-1 form to October 31. Businesses that wish to claim credit for payment of taxes prior to the launch of GST should file TRAN-1. If there is any difference then businesses can revise this form only once. As per states, the transitional credit claimed by businesses is large amounting to Rs 60,000 crores.

Taxes close to Rs 95,000 crores taxes have been earned from approximately 45 lakh assesses. Businesses opting for the composition scheme have been provided time till September 30 by the GST Council to avail the benefit of the scheme.

According to an official statement, such registered person shall be allowed to gain the benefit of the composition scheme starting from October 1. More than 10 lakh registered businesses, who already opted for this scheme are supposed to pay their taxes and file their returns for the July-September quarter by October 18.

Almost 72 lakh businesses have migrated from excise, service tax and VAT registration to GST. The composition scheme serves as an alternative to the imposition of tax designed for small taxpayers from 8 north-eastern states and the hilly state of Himachal Pradesh with turnover of Rs 75 lakh to Rs 50 lakh.

The aim of the government is to achieve simplicity and minimize the compliance cost for small taxpayers. This composition scheme is optional, where manufacturers apart from those of ice-cream, pan masala and tobacco products are required to pay 2% tax on their annual turnover. For others the tax rate is 5%.

Hasmukh Adhia, Revenue Secretary stated that for companies with turnover exceeding Rs 100 crores, the due date for filing GSTR-1 will be October 3. And, October 10 is the last date for the rest of the companies. The filing of GSTR-2 or purchase return, for July will have to be carried out by October 31, and GSTR-3 by November 10.

A group of ministers have been constituted for the purpose of monitoring and resolving technological challenges encountered at the time of GST return filing.


  • Share: 
Ankita Mathur
Ankita Mathur
Ankita is a CA by qualification and works as a GST Expert at H&R Block. She specialises in matters of Indian GST. Her job involves helping people understand GST in the most simplified ways and helping with compliance of GST Laws.

1 Comment

  1. cs says:

    Nice article

Leave a Reply

Your email address will not be published. Required fields are marked *