GST Registration (As a Tax Deductor under GST)

Overview

Tax Deduction at Source (TDS) under GST is applicable to certain specified entities, such as government departments and local authorities, who are responsible for making payments to suppliers of goods and/or services. In such cases, the deductor is required to deduct tax at the time of payment to the supplier and deposit it with the government.

The TDS rate under GST is typically 2% for B2B (business-to-business) transactions and 1% for B2C (business-to-consumer) transactions. However, in some cases, a higher TDS rate may be applicable. The tax deducted should be deposited with the government within 10 days from the end of the month in which tax was deducted.

It is important to note that TDS under GST is applicable only in certain cases and not for all types of supplies or transactions. For example, TDS is not applicable for supplies made by an unregistered person, or for supplies exempt from GST.

Entities that are required to deduct TDS under GST must register for GST and obtain a GSTIN. They are also required to file periodic TDS returns and pay the deducted tax to the government.

Documents Requirements

Required in Soft Copy Only

Documents of Applicant

Passport Size Photo
PAN & Aadhar Card
Email id and Mobile Number
Principal Place of Business Address Light Bill/Rent Agreement/Index-2 Consent Letter (if Required)
Additional Place of Business Address Light Bill/Rent Agreement/Index-2
Consent Letter (if Required)
Other Supporting Documents

Note:-It's important to note that the specific documents required may vary based on the individual circumstances of the taxpayer. SureTax Fincare will assist in determining the necessary documentation and provide guidance on the GST Registration.

Advantages

Legal compliance

GST registration is mandatory for entities that are required to deduct TDS as per the provisions of the GST Act. Registering as a Tax Deductor ensures legal compliance and reduces the risk of penalties and fines.

Avoiding Penalties

GST registration helps businesses avoid penalties, fines, and other legal consequences, for not being compliant with the GST laws.

Better Record Keeping

GST requires businesses to maintain proper records and invoices, which helps in better record-keeping and reduces the risk of tax disputes.

Improves Credibility

GST registration is a sign of a business being compliant with the tax laws, which can enhance its credibility with suppliers, customers, and banks.

Ease of Doing Business

GST has simplified the indirect tax regime in India and made it easier for businesses to operate and pay taxes, thereby improving the overall ease of doing
business.

Claim Input Tax Credit

GST registered businesses can claim input tax credit on the GST paid on their inputs, which can result in significant cost savings.

Increased Efficiency

The GST registration process and the subsequent compliance requirements ensure that the business is well-organized and efficient in terms of its tax affairs.

Access to Government Schemes

GST registration may provide access to government schemes and benefits for small and medium-
sized enterprises.

Frequently Asked Question

Entities specified under the GST Act, such as government departments and local authorities, are eligible to register as tax deductors under GST.

There is no specific threshold limit for GST registration as a tax deductor. Entities specified under the GST Act are required to register as tax deductors regardless of their turnover.

The time frame for obtaining GST registration as a Tax Deductor is typically 15-20 working days from the date of submission of the application and required documents.

The TDS rate under GST is 2% for B2B (business-to-business) transactions and 1% for B2C (business-to-consumer) transactions. In some cases, a higher TDS rate may be applicable.

Entities should obtain GST registration as soon as they become eligible. There is no specific time limit for obtaining GST registration.

The tax deducted should be deposited with the government within 10 days from the end of the month in which tax was deducted.

Non-compliance with TDS regulations can result in penalties and interest.

Yes, a tax deductor can claim input tax credit for the GST paid on their purchases, which can reduce their overall tax liability.

Yes, a registered GST taxpayer can change their registration details such as address, business name, or bank account details by submitting an application on the GST portal. Our expert team at SureTax Finacre provide you the necessary assistance & guidance for making an apllication for correction /Updation in GST.

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GST Registration (As a Tax Deductor under GST)