How to register as TDS Deductors in GST 

(FAQ and Practical )

Who needs to register under GST as a TDS?

TDS stands for Tax Deducted at Source (TDS).

Specified Tax Deductors  need to register as a TDS under GST where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees:

Following would be the deductors of tax in GST under section 51 of the CGST Act, 2017 read with notification No. 33/2017-Central Tax dated 15.09.2017:

(a) a department or establishment of the Central Government or State Government; or

(b) local authority; or

(c) Governmental agencies; or

(d) an authority or a board or any other body,-

(i) set up by an Act of Parliament or a State Legislature; or

(ii) established by any Government,

with fifty-one per cent. or more participation by way of equity or control, to carry out any function; or

(e) a society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of1860); or

(f) public sector undertakings

What are the TDS Rates under GST

Specified Tax Deductors  need to deduct 1% TDS under CGST Act and 1% TDS  under SGST Act  from the payment made or credited to the supplier where the total value of supply for Taxable Goods or Services or both , under a contract, exceeds two lakh and fifty thousand rupees  

In case of inter-state transactions, 2% (under IGST Act) of the total payable amount and remit it into the appropriate GST account.

[ Note : For deduction of tax specified above, the value of supply shall be taken as the amount excluding the central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice.]

Credit of such GST payments will be given to the suppliers.

How can register as TDS under GST ?

• The existing deductors of STDS/TCS under VAT Act will not be automatically migrated to GST.

• Section 24(vi) of the CGST Act, 2017 provides for compulsory liability for registration for the deductors of TDS.

• A deductor in GST will be required to get registered and obtain a GSTIN [Goods & Services Tax Identification Number] as a TDS deductor even if he is separately registered as a supplier.

• A deductor has to get himself registered through the portal www.gst.gov.in by using their PAN/TAN. The entire process is online.

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

The preconditions are:

1. Applicant has valid PAN or TAN.

2. Applicant must have a valid mobile number.

3. Applicant must have valid E-mail ID.

4. Applicant must have the prescribed documents and information on all mandatory fields as required for registration.

5. Applicant must have a place of business.

6. Applicant must have an 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.

What is time limit for the Tax Official to process the registration application as TDS?

Tax Official needs to process the registration application as TDS within 3 working days on first time receipt of the application.

In case of receipt of the queries, taxpayer needs to respond to the notice for seeking clarifications within 7 working days.

Once the taxpayer has responded to the queries, Tax official needs to process the registration application as TDS within 7 working days.

How can I track the status of the registration application?

Yes, you can track the status by using the Registration > Services > Track Application Status service from the GST Portal.

What are the various status of the registration application filed?

What is ARN?

Application Reference Number (ARN) is generated on submission of the application form. It enables the taxpayer to track the status of the submitted application.

Where is ARN received?

Application Reference Number (ARN) receipt is received on the taxpayer’s e-mail address and via SMS on mobile phone number.

What are various ways to sign the application form?

You can sign the form using DSC/ E-sign/ EVC.

a. Digital Signature Certificate (DSC)

Digital Signature Certificates (DSC) are the digital equivalent (that is electronic format) of physical or paper certificates. A digital certificate can be presented electronically to prove one’s identity, to access information or services on the Internet or to sign certain documents digitally. In India, DSC are issues by authorized Certifying Authorities.

The GST Portal accepts only PAN based Class II and III DSC.

To obtain a DSC, please contact any one of the authorised DSC-issuing Certifying Authorities: http://www.cca.gov.in/cca/?q=licensed_ca.html

b. Electronic Signature (E-Sign)

Electronic Signature (E-Sign) is an online electronic signature service in India to facilitate an Aadhar older to digitally sign a document.

A One Time Password (OTP) will be sent to mobile phone number that is registered with Aadhar at the time of digitally signing documents at the GST Portal.

c. Electronic Verification Code (EVC)

The Electronic Verification Code (EVC) authenticates the identity of the user at the GST Portal by generating a OTP. The OTP will be sent to the mobile phone number of the registered mobile phone of Authorized Signatory filled in part A of the Registration Application.

Can I obtain multiple registrations in a state on single TAN/ PAN as TDS?

Yes, you can obtain multiple registrations in a state on single TAN/ PAN as TDS.

 Can I use same mobile number and email ID to fill a separate form with same TAN?

No, you cannot use the same mobile number and email ID to fill a separate form with same TAN. Everytime the combination of mobile number and email ID should be unique.

What is Part A and Part B of the application? What is the difference between these two parts?

Through Part A of the application form, Temporary Reference Number (TRN) is generated which is valid for 15 days.

To create TRN, you need to provide your basic details viz, email address, mobile number and PAN/ TAN.

Once the TRN is generated, same can be used to login to temporary dashboard, access, fill and submit Part B of  the application form. Since TRN is valid for 15 days, so you need to submit your saved application within 15 days.

What verification is done with Income tax database? What is to be done in case of error?

During Part A, your PAN details are validated. In case of any mismatch of data, you need to correct the data and proceed.

What is My Saved applications?

Any/ All applications you have initiated and are in various stages of completion but have not yet been submitted are saved applications. These application will be available for updation and submission up to 15 days from the creation of TRN on the GST Portal.

What is the time limit to fill the application? What happens to application after that?

In case the application form is not filled within 15 days, the application data gets purged.

 What are validations error? How I can see validations error?

When you submit your application online, application data like PAN, TAN, Aadhaar number etc of stakeholders gets validated with external agencies. In case of mismatch of any data, validation error comes.

You can check your email to see the validation error.

 What are the documents the needs to be uploaded while applying for Registration as a TDS?