GST registrations for entities mandated to collect and deduct tax at source will start from September 18. However, the date from which tax deducted at source (TDS) or tax collected at source (TCS) will be done will be notified later. The Goods and Services Tax (GST) Council, at its 21st meeting in Hyderabad, decided to open registration of persons liable to deduct TDS and TCS from September 18. As per the Central GST (CGST) Act, the notified entities are required to collect TDS at 1 per cent on payments to suppliers of goods or services in excess of Rs 2.5 lakh.
Also, e-commerce companies are required to collect 1 per cent TCS while making payment to suppliers under GST, which kicked in from July 1. Following industry demands, the government in June had decided to defer the TDS and TCS provision for smooth rollout of GST. GST subsumed a host of levies including excise and service tax and transformed India into a single market for seamless movement of goods and services. Also, accommodating industry demands, the GST Council, chaired by Union Finance Minister Arun Jaitley and comprising state counterparts, on Saturday decided to extend the deadline for filing TRAN-1 form by a month to October 31. TRAN-1 is to be filed by those businesses that want to claim credit for taxes paid before the launch of GST. This form can now be revised once by businesses in the case of any discrepancy.
According to states, the transitional credit claimed by businesses is huge running up to Rs 60,000 crore. In the maiden returns for July, as much as Rs 95,000 crore taxes have been earned from about 45 lakh assessees. With regard to people opting for the composition scheme, the GST Council has decided to give businesses time till September 30 to avail of it. “Such registered person shall be permitted to avail of the benefit of the composition scheme with effect from October 1,” an official statement said.
Besides, the over 10 lakh registered businesses who have already opted for the composition scheme will be required to file their returns for the July-September quarter by October 18 and pay their taxes. Under GST, as many as 72 lakh businesses have migrated from excise, service tax and VAT registration. The composition scheme is an alternative to the levy of tax designed for small taxpayers whose turnover is up to Rs 75 lakh — Rs 50 lakh in the case of eight north-eastern states and the hilly state of Himachal Pradesh. The objective is to bring simplicity and reduce the compliance cost for small taxpayers. The scheme is optional under which manufacturers other than those of ice cream, pan masala and tobacco products have to pay a 2 per cent tax on their annual turnover. The tax rate is 5 per cent for the rest.
Source : MillenniumPost