TCS and TDS applicable from 1st Oct'18 as per GST Law

TCS and TDS applicable from 1st Oct'18

After putting it off for long, CBEC finally made TDS and TCS applicable from 1st October 2018. Let's understand these briefly. TCS must be collected by every e-commerce operator if this operator collects payment on behalf of a seller. Rate should not exceed 2% (exact rate will be notified in due course). Such TCS collected must be deposited to the govt within 10 days after the end of the month in which it was collected. TDS must be deducted where total value of supply exceeds Rs 2.5L. This only applies where the payer is a government entity (central and state govts, local authority, govt agency) or those notified by the govt as GST Council may suggest from time to time. Implications - TCS will add another layer to your reconciliation process for GST. As a seller on an e-commerce website, your outward supplies must match those reported by the operator. If these don’t match, you’ll have to add them to your outward supplies and pay relevant tax and interest on them. Reconciling with your operator becomes critical to make sure you face no additional tax liabilities while filing your return. As an e-commerce operator, you will have to start filing GSTR-8 to start reporting your TCS collections and also reconcile with sellers on an ongoing basis. Amendment of registration GST portal has now allowed facility for amendment of Registration of non-core fields in Form GST REG-14 to those whom TCS or TDS applies. Therefore, in case you need to change your details due to TCS/TDS becoming applicable, you must do so now. Ask us here, if TCS/TDS can impact your GST registration. Search GSTINs by PAN Any person can view all GSTINs registered against a particular PAN on gst.gov.in, link here. Taxpayer details like status of GSTINs, whether active or inactive, type of taxpayers and date of registration etc can be seen. If you are doing business with new entities, you can quickly validate their GST credentials by going to this link!