New Delhi – The Goods and Services Tax registrations for entities commanded to collect and deduct tax at source will start with their procedure from September 18, 2017. However, it is said that the date from which the tax deducted at source and tax collected is expected to be notified later to everyone.
This was decided by GST Council in the 21st meeting in Hyderabad, where they decided to open the window for registrations for all the persons who are liable to deduct TDS and TCS from 18th of this month.
As per the Central GST Act 2017, the entities who would be notified would be required to collect the TDS at 1% on all the payments that are made to the suppliers of goods and services if these payments are more than ₹ 2.5 lakh.
Also as per the Act, the e-commerce companies are required to collect 1% TCS (Tax Collected at Source) while making payments to suppliers as per the GST. The GST kicked off from 1st July 2017.
Following the various industry demands and the buzz, the government kind of deferred the TDS and TCS provision for a smooth implementation of the goods and services tax. Implementing GST absorbed a lot of tax that was levied earlier, taxes such as excise and service tax. This has transformed India into a single tax system which would help in the seamless movement of the goods and services.
Also taking into consideration the various industry demands, the GST Council that is chaired by the Finance Minister Mr. Arun Jaitlely, decided to extend the deadline for filing TRAN-1 form by a month. The deadline has now been extended to October 31st.
TRAN-1 is a form that is supposed to be filed by all the businesses that want to claim credit for taxes they have paid in the pre-GST era. The form can now also be revised by the companies in case they feel there might be some discrepancy.
In the first ever returns for July, as much as ₹ 95,000 crores taxes have been earned from about 45 lakh assesses who filed the returns. And the transitional credits as the states that have been claimed by the businesses is quite huge with a figure of ₹ 60,000 crores. Taking into consideration the composition scheme, the GST Council decided to extend the time till September 30th.
Apart from all this, more than 10 lakh businesses that have registered for the composition scheme will have to file their returns for July-September by the October 18th, 2017. As per the numbers as many as 72 lakh businesses either big or small have migrated from the excise and service tax, VAT (value added tax) towards the GST.
The composition scheme has been designed for all the businesses who have an annual turnover of up to ₹ 75 lakh. The threshold is ₹ 50 lakh for eight north-eastern states and Himachal Pradesh. The objective of this scheme was to reduce the compliance cost and bring in some simplicity for small players in the market. This scheme is optional for manufacturers other than ice cream, pan masala, and tobacco products and has to pay a 2% tax on their annual turnover. The tax rate is 5% for the rest of the manufacturers.
For the process to be made a bit easy, the GST Council has also announced that the businesses can file the simplified form of GSTR-3B for the four months, i.e., till December. Simultaneously the deadline to file the sales return in GSTR-1 has also been extended by a month to 10th October 2017. Due to the massive rush that the GSTN has been facing over the several days the dates were revised by the GSTN council recently. The date for filing GSTR-2 and GSTR-3 had also been extended to 31st October and 10th November respectively.