Registration
- Any person who is required to deduct TDS or collect TCS will electronically submit an application for registration, duly signed or verified through EVC (electronic verification code), using the FORM GST REG-07 on the Common Portal; either directly or from a Facilitation Centre notified by the Commissioner.
- The proper officer will grant registration after verification and issue a certificate of registration in FORM GST REG-06 within 3 working days from the date of submission of application.
Who will collect TCS under GST?
E-commerce aggregators are responsible under the GST law for collecting and depositing tax at the rate of 1% from each transaction. Any dealers/traders selling goods/services online would get the payment after deduction of 1% tax.
All the traders/dealers selling goods/services online would need to get registered under GST even if their turnover is less than 20 Lakhs for claiming the tax deducted by aggregators.
Who will deduct TDS under GST?
TDS is to be deducted at the rate of 1% on the payments made to the suppliers of taxable goods and/or services, where the total value of such supply, under an individual contract, exceeds Rs. 2,50,000.
The following people/entities need to deduct TDS:
- A department or establishment of the Central or State Government
- Local authorities
- Government agencies
- Persons as notified by the Central or a State Government on the recommendations of the Council
Cancellation of Registration
- If the proper officer
enquires or ascertains through a proceeding that a person is no longer liable to deduct TDS or collect TCS, then the officer will cancel the registration. The cancellation shall be communicated to the said person electronically in FORM GST REG-08. - The officer will follow the same procedure for cancellation as for normal taxpayers.