Govt contractors may have to pay TDS under GST from Oct 1 ,2018
Video Explanation by CA Satbir Singh
TDS under GST
Contractors engaged in the execution of projects related to the works departments like road construction and irrigation are likely to come under the tax deduction at source (TDS) net from October 1,2018 deputy CM Sushil Kumar Modi, who heads the group of ministers (GOM) on goods and services tax (GST), said on Saturday.(14.07.2018)
Modi, after a meeting in this connection in Bengaluru, said the recommendations for bringing the contractors of works departments under the TDS net and also the relaxing the GST norms were made by the GOM.
He said Infosys would prepare and develop a software for business intelligence by keeping a tab on those who avoid paying taxes or indulge in “tax thefts
Chips on heavy transport vehicles
Further, the National Informatics Centre (NIC) has been asked to conduct a detailed study so that chips could be fixed on the heavy transport vehicles on the pattern of Maharashtra and Uttar Pradesh to facilitate e-way bill system in the entire country, he added. Every state checkpost would be fitted with sensor camera, which would instantly register if the heavy transport vehicle fitted with the chips carry good
Changes in GST Act
Modi said decisions on far-reaching changes and amendments in the rules and regulations regarding the GST could be considered at the 28th GST council meeting in Delhi on July 21 ,2018
The turnover limit for small traders under the composition scheme could be increased from the present Rs 1 crore to Rs 1.5 crore, Modi said, adding the forms for filing returns would also be reduced to one page.
One GST Return per Month
Against the present practice of filing 37 returns a year, traders would require to file one return per month on an average and overall 13 per year, Modi said.
Besides, 80% of the dealers, who sell their merchandize to consumers, would have to file only three-line return.
GST defaulters will be shared with state Govt
From now on, data of GST defaulters detected through the Business Intelligence tool will be shared with the state government, said Sushil Kumar Modi, who heads the group of ministers (GoM) in GST Network. The BI tool will be used to monitor every transaction of a trader, and the data obtained of the GST tax defaulters will be shared with respective Commercial Tax department of each state government. The tool is expected to monitor and identify tax defaulters.
Sushil said the BI (business Intelligence) tool will act like a third eye which monitors every transaction of the trader, right from buying the raw material to selling the products to the end user. Modi said that the discrepancies in filing of returns can be identified readily with the new system. The same would be shared with the Commercial Tax department of the respective state government to book the culprits. Some states have started to take action and warned the traders.
Separate GST registration for tax deductor required
GST TDS and TCS Provisions Suspended till 30.09.2018 : CBIC Press Release
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GST – TDS / TCS Provisions postponed under CGST / SGST Act 2017