Extension of deadline for filing GST TDS returns

The Government has extended the due date for filing returns pertaining to Tax Deducted at Source (TDS) under the provisions of the GST Act in Form GSTR-7 for the period Oct-Dec 2018 till January 31st, 2019.

The provisions of TDS under GST were brought in force from 01st October, 2018. According to the CGST Act, 2017, the notified entities have to deduct TDS at the rate of 1% on payments against goods or service supplies made above INR 2.5 lakhs. Additionally, states are also required to levy 1% TDS on such transactions. Therefore, the total TDS amounts to 2% of the GST levied.

The Finance Ministry has, through a notification, extended the due date for filing the TDS return in Form GSTR-7 till Janaury 31st, 2019 owing to technical issues faced in respect of acceptance of credit of tax deducted at source by the deductees and generation of TDS certificates thereby causing further disputes between the Tax deductors and deductees.