GST Registration as Tax Deductor or collector – FAQ’s

By | August 21, 2018
(Last Updated On: August 21, 2018)

GST Registration as Tax Deductor or collector

GST TDS and TCS Provisions Suspended till 30.09.2018 : CBIC Press Release . Govt is expected to make TDS /TCS mandatory from 01.10.2018

Who needs to register under GST as a TDS ?

TDS stands for Tax Deducted at Source (TDS). All Governments, Government undertakings, Local Authorities and other notified entities making contractual payments in excess of INR 2.5 Lakhs to suppliers need to register as a TDS under GST. In the GST regime, while making such a paymentin excess of INR 2.5 Lakhs, the concerned Governments, Government undertakings, Local Authorities and other notified entities needs to deduct 1% under CGST Act and 1% under SGST Act; In case of inter-state transactions, 2% (under IGST Act) of the total payable amount and remit it into the appropriate GST account. Credit of such GST payments will be given to the
suppliers

[ Read Also GST Registration as Tax Deductor on GST Potal : Steps to Register with screenshots ]

Who needs to register under GST as a TCS?

TCS stands for Tax Collected at source. In the GST regime, every e-commerce operator needs tocollect 1% under CGST Act and 1% under SGST Act; In case of inter-state transactions, 2% (under IGST Act)on the net values of taxable supplies made through the e-commerce operator.

How can register as TDS or TCS?

The Registration Application for Tax Deductor/Tax Collector can be filed by the applicant directly by themselves.In GST regime, the registration process is online and any person/entity wishing to register will have to access the GST system for the same. Any person who wish to get registered as the Tax Deductor/Tax Collector needs to apply in the
form prescribed.

Application for Registration as Tax Deductor at source ( u/s 51) or Tax Collector at source ( u/s 52) has to be in  GST REG 7

Are there any preconditions I must fulfill before registering with GST as a TDS or TCS?

The preconditions are:

1. For Registration as Tax Deductor: Applicant has valid PAN or TAN.
2. For Registration as Tax Collector: Applicant has valid PAN.
3. Applicant must have a valid mobile number.
4. Applicant must have valid E-mail ID.
5. Applicant must have the prescribed documents and information on all mandatory fields as
required for registration.
6. Applicant must have a place of business.
7. Applicant must havean authorized signatory with valid details.

Do I get registered automatically after submitting the registration application along with the prescribed documents?

No, your registration application will be processed and approved by the relevant Tax Officer, only then will you be issued the registration certificate and GSTIN.

I am an e-commerce operator; registered as a TCS under GST regime. I supply goods to multiple states. Do I need to register in each state?

Yes, you need to register separately in each state and appoint a person in each state/UT who will be liable to pay GST.

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3 thoughts on “GST Registration as Tax Deductor or collector – FAQ’s

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