TDS /TCS Provisions in GST wef 01/10/2018

TDS/TCS implemented

After a lot of hue and cry finally the provisions of TDS /TCS have been effective from today viz 01/10/2018 .These provisions have been in vogue in erstwhile acts yet in GST due to one nation tax the implementation means a lot as in earlier laws the effect were limited to states only but now these are applicable throughout the nation

The provisions takes its force from sec 51 of CGST act which are explained below

Provisions of TDS

Who is liable to deduct:

Government departments are liable to deduct from the payment made or credited to the supplier in specified situations of supply of goods and services or both

How much to deduct:

The tax would be deducted @1% (on CGST and SGST individually) of the payment made to the supplier (the deductee) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh fifty thousand rupees (excluding the amount of Central tax, State tax, Union Territory tax, Integrated tax and cess indicated in the invoice). Thus, individual supplies may be less than Rs. 2,50,000/-, but if contract value is more than Rs. 2,50,000/-, TDS will have to be deducted. However, no deduction shall be made if the location of the supplier and the place of supply is in a State or Union territory, which is different from the State, or as the case may be, Union Territory of registration of the recipient.


The deduct has to invariably register with the department irrespective of its turnover

Time of deposit of tax with the government:

The amounts deducted in a month are to be deposited by the 10th of the end of month in which deducted.Any delay shall make the deductor liable for interest

Issue of Tax Deduction certificate:

A certificate of tax deduction has to be issued within 5 days of deposit

Filing of Return:

GSTR 7 to be filed monthly

Provisions for TCS

Enforcing section is sec 52 of CGST act

This provision is basically for e-commerce transactions wherein there are three parties

a)On line buyer

b)Online seller

c)e-commerce operator who acts as a platform where the seller and buyer meets and who collects the payment from the buyer and transfers the same to the seller and ensures the delivery .In this process the operator charges some commission.Now in these provisions the operator has to deduct 1% (on CGST and SGST individually) TCS from the payment to be made to seller

The amount has to arrived as follows:

Net Value of Taxable Supplies = [(Aggregate Value of Taxable Supplies of Goods + Services) – (Section 9(5) Services)]} – (Aggregate Value of Returned Taxable Supplies + Goods)]

Regulations for TCS 


Every e-commerce operator and the supplier has to register itself irrespective of turnover

Time period of tax payment:

All amount collected as TCS in a month has to be deposited by the 10th of the next month

Monthly Return:

GSTR8 to be filed monthly.For format you can refer to the relevant post here

Annual Statement:

GSTR9B has to be filed by 31st December of the financial year

Rectifying Errors:

Any rectification if discovered can be done in the month of discovery subject to the condition that no rectification allowed after the furnishing of annual Return for the year

1 thought on “TDS /TCS Provisions in GST wef 01/10/2018

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.