TNGST Act, 2017 - Commercial Taxes Department - Guidelines for Deductions and Deposits of TDS by the DDO under GST. - GST - States - 8/2018-TNGST

GOVERNMENT OF TAMIL NADU COMMERCIAL TAXES DEPARTMENT OFFICE OF THE ADDITIONAL CHIEF SECRETARY / COMMISSIONIER OF COMMERCIAL TAXES EZHILAGAM, CHENNAI - 600 005 PRESENT: DR. T.V. SOMANATHAN, I.A.S., ADDITIONAL CHIEF SECRETARY/COMMISSIONER OF STATE TAX Circular No.8/2018-TNGST (Ref.No.306/2017/A3/Taxation cell) dated: 12.11.2018 Sub: TNGST Act, 2017 - Commercial Taxes Department - Guidelines for Deductions and Deposits of TDS by the DDO under GST - regarding Section 51 of the TNGST Act 2017 provides for deduction of tax by the Government Agencies (Deductor) or any other person to be notified in this regard, from the payment made or credited to the supplier (Deductee) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees. The amount deducted as tax under this section shall be paid to the Government by deductor within ten days after the end of the month in which such deduction is made alongwith a return in FORM GSTR-7 giving the details of deductions and deductees. Further, the deductor has to issue a certificate to the deductee mentioning therein the contract value, rate of deduction, amount deducted etc. 2. As per the Act, every deductor shall deduct the tax amount from the payment made to the supplier of goods or services or both and deposit the tax amount so deducted with the Government account through NEFT to RBI or a cheque to be deposited in one of the authorized banks, using challan on the common portal. In addition, the deductors are entrusted the responsibility of filing return in FORM GSTR-7 on the common portal for every month in which deduction has been made based on which the benefit of deduction shall be made available to the deductee. All the DDOs in the Government, who are performing the role as deductor have to register with the common portal and get the GST Identification Number (GSTIN). 3. The subject section which provides for tax deduction at source was not notified to come into force with effect from 1st July, 2017, the date from which GST was introduced. Government has recently notified that these provisions shall come into force with effect from 1st October, 2018, vide Notification No. 50/2018 - Central Tax dated 13th September, 2018. and TN Notification. dated 13.09.2018. 4. For payment process of Tax Deduction at Source under GST, the Govt. of India in the Circular third cited has issued procedures to be followed by Central authorities. 5. In the G.O. third cited, the Govt. has issued detailed instructions regarding deduction of tax at source by State authorities as stated below: After considering the various issues involved in the matter and the statutory obligations to be fulfilled, the Government issue the following operational guidelines for remittance of Tax Deducted at Sources (TDS) under Goods and Services Tax (GST) Act 2017, as per the G.O.Ms.No.342, Finance (T A-III) Department dated 17.10.2018 and Gazette Notification first and second read above. I. Role of Head of Department (a) About 35,000 transactions fall under the category of more than ₹ 2.5 Lakhs which are done by 2007 Nos. of DDOs. All these DDOs are from different Departments and different Districts. Thus number of transactions per DDO in a year is very less. Therefore, the Departments shall nominate Nodal Officers at State level/Zonal level/Division level based on number of transactions in the respective Department and communicate numbers the same to Treasuries and Accounts and Commercial Taxes Department. (b) As the PWD, Highways, Departments have more number of transactions on contract works Nodal Officers, may be designated at District level by these departments and the list shall be sent to Treasuries and Accounts and Commissioners of Commercial Taxes Department. II. Role of Nodal Officers (a) The Nodal Officers designated by the respective HOD shall open a separate Bank Account to credit the TDS on GST amount. (b) The Nodal Officers designated by the Head of the Department have to register in the GSTN Portal as a tax Deductor with GST as per guidelines issued by the Additional Chief Secretary to Government, Commercial Taxes and Registration Department's D.O. LetterNo.8678/B1/2017, Dated 2.8.2017. (c) After the Registration, the Nodal Officer Bank Account Details (exclusively opened for TDS on GST) through PAOs / Treasuries by ECS. (d) The DDOs in the concerned Department shall send TDS on GST amount to Nodal Officers Bank Account (exclusively opened for TDS on GST) through PAOs / Treasuries by ECS. (e) The Nodal Officer have to receive the details of amount, GSTIN of the Contractor, Invoice details from the DDOs in consolidated manner at the end of the month. (f) Necessary reconciliation of the details submitted by the DDOs shall be done by the Nodal Officer with reference to the amount credited at Nodal Officer's Bank Account. (g) As per GST Act, the amount so deducted shall be remitted in GSTN along with GSTR7 on before 10th of succeeding month. Hence the Nodal Officer has to remit the amount deducted from the DDOs, through GSTN Portal by Internet Banking / NEFT / RTGS as per guidelines with the details sent by the DDOs at Units. (h) Intimation on the remittances with details shall be sent by the Nodal Officer to DDOs concerned. III. Role of Drawing and Disbursing Officers (a) The Drawing and Disbursing Officers shall submit the Bills along with Vouchers to PAOs / Treasuries with a schedule of TDS on GST for making payment. (b) The Schedule shall contain the following details:- Name of the DDO Name of the Nodal Officer GST-TAN(GSTIN) of the nodal officer Name of the Contractor/Supplier Contractor/supplier GSTIN Invoice No. Invoice Date Total Taxable value of the Contract Amount released now for payment TDS Deduction the amount mentioned in col.(9) TNGST CGST IGST Total 1 2 3 4 5 6 7 8 9 10(a) 10(b) 10(c) 10(d) (c) Bill shall be submitted to the Treasuries / PAOs to make two payments through ECS. One for Contractor / Supplier duly deducting the TDS on GST and another in favour Nodal Officers Bank Account (exclusively opened for TDS on GST). (d) As per guidelines, the deductions shall be made in the following rates:- (i) One per cent for State GST on such payment made or credited for supplier within the State and (ii) One percent for Central GST on such payment made or credited for supplies within the State (iii) Two percent for Integrated GST on such payment made or credited for inter-State supplies. (e) The DDO have to download the amount transferred to Nodal Officer from Treasury website. This shall be reconciled and schedules shall be sent to Nodal Officer. (f) It is the duty of the DDO to furnish entire details to Nodal Officer to e-file returns in GST. IV. Role of PAO / Treasury (a) Admit the bills presented by the DDO for making two payments through ECS one for Contractor / Supplier Bank Account and another for Nodal Officers Bank Account (Exclusively opened for TDS on GST). (b) While DDOs present bills, TDS may be deducted by the respective DDOs and amount may be transferred to Nodal Officers Bank Account through ECS by the PAOs / Treasuries. The rest of the payments including balance GST may be transferred to the Suppliers through ECS by the PAOs/ Treasuries as per instructions issued in Government orders. (c) Treasuries and Accounts Department shall make provision in IFHRMS to make ECS payment to the Nodal Officer, updating the details of DDO, Nodal Officer GST-TAN (GSTIN) No. Bank Account, Contractor / Supplier's GSTIN etc. and make Report Generation from DDO level, Nodal Officer level and PAO/Treasury level with the details of amount remitted in consultation with Commercial Taxes Department. V. Role of National informatics Centre (a) NIC shall develop additional provision in ATBPS and in Web Payroll / Payroll software for Non Salary Bills for the inclusion of making ECS payment to the Nodal Officer, updating the details of Nodal Officer GST-TAN No (GSTIN), Bank Account, Contractor / Supplier's GSTIN No. etc. (b) Report Generation from DDO level, Nodal Officer level and PAO/Treasury level with the details of amount remitted shall be given. (VI) The operational guidelines issued in the Government orders shall be followed scrupulously by all the HODs so as to ensure prompt remittance of TDS made under GST Act within the due dates prescribed for this purpose and thereby avoid payment of penal charges on delayed remittance. The HODs are further directed to complete the process envisaged for them within three days from the date of issue of this Government order and co-operate with the Treasuries and Accounts Department and Commercial Taxes Department to fully comply with the guidelines and be ready for making TDS remittances. 6. Accordingly, all Heads of departments are requested to nominate nodal officer for the purpose of tax deduction at source under GST Act. The officer so nominated may be instructed to get registration under GST Act as Tax Deductor by filing application in GST REG 7 through common portal of GST www.gst.gov.in and the procedure for filing application for registration as tax deductor is enclosed in Annexure-A. The Nodal officer shall have PAN and if PAN is not available, TAN can be used for the purpose of registration. The Nodal officer shall file monthly return in GSTR 7 for the month in which the TDS has been made through common portal www.gst.gov.in within 10 days from the end of such month. The Nodal officer shall also issue of TDS certificate in GSTR 7A to the deductee within five days of crediting the amount so deducted to the Govt. Any delay in filing the return in GSTR 7 and issued of certificate in GSTR 7A may invite penalty by way of late fee of Rs.100 per day of delay under TNGST Act' 2017 and ₹ 100 per day of under CGST Act, 2017 (Rs.100/- for CGST + ₹ 100/- for TNGST aggregating ₹ 200/-) 7. The DDO should maintain a Register as per proforma given in Annexure 'B' to keep record of all TDS deductions made by him during the month. This Record will be helpful at the time of filing Monthly Return (FORM GSTR-7) by the DDOs. The DDOs may also make use of the offline utility available on the GSTN Portal for this purpose. Enclosures : Annexure A B Sd/- Dr. T.V.Somanathan Additional Chief Secretary / Commissioner of State Tax ANNEXURE-A TO THE CIRCULAR NO.08/2018-TNGST DATED 12.11.2018 Step by step process of registration of TDS Deductors in GST: PART - I Entering User credentials for Registration Application 1. Go to the GST Portal at www.gst.gov.in 2. Click on the Services Tab Click on Registration Select New Registration . 3. Find the box I am a which will capture your status as an applicant. Select Tax Deductor from the drop-down menu. 4. Look below for the options: I have a (a) PAN (b) TAN. Please select the option TAN . 5. Enter the TAN in the box below. 6. Now find the box State and select your State (e.g. West Bengal) from the drop-down Menu. 7. Select the applicable district (e.g. Howrah) from the drop- down Menu in the District box. 8. Find the box Legal name of the Tax deductor . Enter the name as mentioned in TAN. Please don't deviate from such data. 9. Enter your e-mail address and Mobile Number in the respective boxes. Please ensure that this e-mail and mobile are regularly accessed by you. OTP for registration will be sent to these contacts only. 10. Enter the Captcha Code as displayed onscreen. 11. Click on the button Proceed . 12. Automatically you will be guided to the next page. 13. The system will also send 2 different OTPs. One to the Mobile Number and another to the e-mail id as entered by you. PART - II : OTP Verification 1. Enter the individual OTPs sent to your e-mail id the Mobile number in the respective boxes. 2. In case, you have not received the OTPs due to any reason, you may click on the link Click here to resend the OTP . 3. Click on the button Proceed . 4. A Temporary Reference Number (TRN) will be generated. Please note this TRN is for further course of action. 5. Now, you have to fill up the rest of the details in the Registration Application against this TRN only. 6. Click on the button Proceed to leave this page. 7. This TRN will be valid for 15 days. So you can always come back to the system for filling up the rest of the details at any time within such 15 days. In case this TRN expires beyond 15 days, you will have to follow the steps as detailed in Part I and Part Il all afresh. PART - III : Filling up the registration Form : Entering TRN 1. Go to the GST Portal at www.gst.gov.in 2. Click on the Services Tab Click on Registration Select TRN . 3. Enter the TRN as you have noted down previously. 4. Enter the Captcha Code as displayed on screen. 5. Click on the button Proceed . 6. You will be guided to the next page. PART - IV : Filling up the registration Form : OTP Verification 1. This time only 1 OTP will be sent to your e-mail id the Mobile number. 2. Enter the OTP in the respective box. 3. In case, you have not received the OTPs due to any reason, you may click on the link Click here to resend the OTP . 4. Click on the button Proceed . 5. You will be guided to the My saved Applications page. 6. The link of your application for Registration as a Tax Deductor in Form GST REG 07 will be displayed on screen with the corresponding expiry date of 15 days. 7. Click on the blue coloured box with an icon of Pen under the field Action to proceed. 8. Now you will be guided to the main application form for filling up the details. 9. This will have 5 different tabs. Please ensure that all the fields in the individual tabs are duly selected. PART - V : Filling up the registration Form : Tab 1 : Business Details 1. As per the GST Law, Business includes all activities undertaken by a Govt. Dept. or a Local Authority. So, the Business details as mentioned in this Form will capture your Office details. 2. The Legal Name of Tax Deductor, e-mail address, Mobile No., TAN and Status as a Tax Deductor will be displayed on screen automatically as all these have already been entered by you. 3. Ignore the box Trade Name . 4. Select your Office type e.g. Govt. Dept./ Local Authority etc. from the drop down menu of the box Constitution of Business . 5. Select Type of Government as State or Central (as applicable) if you have entered your constitution as Govt. Dept. 6. Date of liability will be auto-populated. You need not worry even it shows as the current date because you will be liable to deduct TDS only from the day, Section 51 of the CGST/SGST Acts, 2017 is notified i.e. with effect from 01.10.2018. If you apply for registration after this date, you will be liable from the date of application for registration. 7. Enter the State Jurisdiction details by selecting the applicable District and Sector/Circle/Charge/Unit from the drop-down menu 8. Enter the Center Jurisdiction accordingly. To know the Central Jurisdiction, you may click on the designated link given therein and find the appropriate data. 9. Click on Save and Continue to proceed to the next tab. 10. Once all the required data are filled up, you will find that the Tab: Business Details will be displayed with a tick ( ) mark. PART - VI : Filling up the registration Form : Tab 2 : DDO Details 1. Enter the Personal details of the DDO in the first part of this page. 2. Here you will have to enter: (a) name of DDO, (b) Father's name of DDO, (c) Date of Birth, (d) Mobile Number, (e) e- mail address, (f) Gender, (g) Telephone (landline) with STD Code. 3. Enter the Identity Information of the DDO in the second part of this page. 4. Here you will have to enter: (a) Designation of DDO, (b) PAN of DDO, (c) Aadhaar Number (not mandatory) 5. Enter the Residential details of the DDO in the third part of this page. 6. Here you will have to enter: (a) Residential address of the DDO. 7. Now, upload a photograph of the DDO in JPEG format (file size max. 100kb) 8. Select the button Also authorized signatory as Yes. 9. Click on Save and Continue to proceed to the next tab. 10. Once all the required data is filled up, you will find that the Tab: DDO Details will be displayed with a tick ( ) mark. PART - VII : Filling up the registration Form : Tab 3 : Authorised Sanatory Details 1. As you have already selected the button Also authorized signatory as Yes in the previous page, the data from DDO details will be auto-populated. 2. Click on Save and Continue to proceed to the next tab. 3. Once all the required data is filled up, you will find that the Tab: Authorised Signatory Details will be displayed with a tick ( ) mark. PART -VIII : Filling up the registration Form : Tab 4 : Office Address Details 1. Enter the DDO's Office Address details in the first part of this page. 2. Enter the Office Contact details in the second part of this page. 3. Select the nature of possession of premises from drop-down menu. 4. Now, select from the drop-down menu, a type of document you want to upload as an address proof. 5. Now upload such document accordingly either in PDF or JPEG format (file size max. 2mb) 6. Click on Save and Continue to proceed to the next tab. 7. Once all the required data is filled up, you will find that the Tab: Office Address Details will be displayed with a tick ( ) mark. PART - IX : Filling up the registration Form : Tab 5 : Verification 1. Select the Verification Check Box. 2. Select the DDO's name (with TAN) from the drop-down menu of Name of Authorised Signatory . 3. Enter Place. 4. You can sign the application either with your DSC or with EVC. 5. Select the appropriate option and proceed accordingly. 6. In case you face any glitch regarding attaching your DSC, a designated link for solution is provided in the page itself. 7. If you have entered all the details and have successfully submitted your properly signed application, the page will now display a success message and accordingly an Acknowledgement will be sent to you. Now, the proper officer will process your application and your 15 digit GSTIN as a Tax Deductor will be generated. ANNEXURE-B TO THE CIRCULAR NO.08/2018-TNGST DATED 12.11.2018 Record to be maintained by the DDO / Nodal Officer for filing of GSTR-7 of the following details:- 1. Sl. No. 2. GSTIN of the Deductee 3. Trade Name 4. Amount paid to the Deductee on which tax is deducted 5. Integrated Tax 6. Central Tax 7. State Tax 8. Total