In the ever-evolving landscape of tax regulations, staying compliant is crucial for businesses. One such regulation that Scrap dealers need to be aware of is the requirements to deduct Tax deducted at source (TDS) under section 51 of the Central Goods and Services Tax (CGST) Act, 2017. This Blog post aims to provide a comprehensive guide on reporting TDS Deducted by scrap dealers, especially in light of recent updates.
Understanding the Requirement.
As per Notification No. 25/2024- Central Tax, effective from October 10, 2024, any registered person receiving supplies of metal scrap classified under chapters 72 to 81 of the First Schedule to the customs Tariff Act, 1975, from another registered person, is required to deduct TDS. This measure ensures that tax is collected at the source, thereby improving compliance and reducing tax evasion.
Common Issues Faced by Taxpayers.
Since the implementation of this notification, several taxpayers have encountered issues while reporting TDS Deducted in October 2024. The Primary challenge arises from the timing of GST Registration approvals. Many Taxpayers applied for GST registration in October 2024 but received approval only in November 2024. Consequently, the month of October 2024 is not visible in the return dropdown for these taxpayers, as the existing GSTIN System design does not enable returns for tax periods prior to the registration month.
Resolving the Reporting Issue.
To address this issue, taxpayers who were granted registration in November 2024 but deducted TDS in October 2024 are advised to report the consolidated amount of TDS deducted for the period from October 10, 2024, to November 30, 2024, in the GSTR-7 return to be filed for the month of November 2024. This approach ensures that all TDS deductions are accurately reported and compliance ismaintained.
Steps to Report TDS in GSTR-71. Log in to the GST Portal: Access the GST portal using your credentials.
2. Navigate to GSTR-7: Select the GSTR-7 return for the month of November 2024.
3. Enter TDS Details: Report the consolidated TDS amount deducted from October 10, 2024, to November 30, 2024.
4. Submit and File: Review the details and submit the return. Ensure that all information is accurate before filing
ConclusionStaying compliant with tax regulations is essential for the smooth operation of any business. By understanding the requirements and addressing common issues, scrap dealers can ensure that they meet their TDS reporting obligations effectively .
1. Log in to the GST Portal: Access the GST portal using your credentials.
2. Navigate to GSTR-7: Select the GSTR-7 return for the month of November 2024.
3. Enter TDS Details: Report the consolidated TDS amount deducted from October 10, 2024, to November 30, 2024.
4. Submit and File: Review the details and submit the return. Ensure that all information is accurate before filingStaying compliant with tax regulations is essential for the smooth operation of any business. By understanding the requirements and addressing common issues, scrap dealers can ensure that they meet their TDS reporting obligations effectively .
