Finance department ask DDOs to strictly follow to GST rules
The Finance Department has issued a number of directions to Draw and Disbursing Officers (DDOs) in Jammu and Kashmir for deductions and deposit of Tax Deducted at Source (TDS) under Goods and Service Tax (GST).
As per the guidelines, the amount deducted as tax under this section 51 of the Jammu and Kashmir GST Act, 2017 shall be paid to the Government by the deductor within ten days after the end of the month in which such deduction is made along with a return in Form GSTR-7 giving the details of deductions and deductees.
Whereas, Section 51 of the Jammu and Kashmir GST Act, 2017 provides for deduction of tax by the Government Agencies (Deductor) or any other person to be notified in this regard, from the payment made or credited to the supplier (Deductee) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees.
The directions have been issued by Vivek Bhardwaj, Financial Commissioner, Additional Chief Secretary Finance Department.
“Instances have come to the notice of the Finance Department that some DD0s are not following the provisions of (Tax Deducted at Source) TDS as envisaged under Goods & Services Law (J&K GST Act 201 7/ CGST Act 2017/ IGST Act 2017)”, the order reads.
Accordingly, the following comprehensive guidelines are issued for strict compliance by all the Government Departments of Union Territory of Jammu & Kashmir, it added.
In order to comply with the provisions of the said Act for the purpose of TDS, the following steps are required to be taken by the DDOs.
The steps include Registration as Tax Deductors in the GST common portal. Deduction of TDS amount as per the provisions from the bills to be paid to the suppliers/deductees, Deposit the TDS amount into appropriate Government account(s), and File Tax Returns for TDS within the prescribed time limit.
The DDO or the Authorized Signatory is required to make an application online on GST Common Portal on behalf of the Tax Deductor. After the application is successfully submitted by the applicant, the same would be processed by the respective jurisdictional tax officer. Once the application is approved, the DDO (or Authorized signatory) will receive the GST Number in the given email [D along with the initial password.
The number of TDS deducted should be deposited with the Government by the deductor by the l 0th of the next month in Form GSTR 7 through the online portal. The deductor would be liable to pay interest if the tax deducted is not deposited within the prescribed time limit as mentioned above.
