Since the introduction of the Goods and Services Tax (GST) on July 1, 2017, one issue that has continually been in the limelight is returns filing. GST introduced a host of new requirements for returns, and mistakes or non-compliance result in interest and penalties for businesses, as well as negative GST ratings.

• Payment of Taxes

Section 49 of CGST Act, every person will make deposit in Form GST PMT-4 towards payment of tax, interest, penalty or fees through:

1. Internet banking through authorised banks;
2. Debit/credit card through authorised banks after registering on common portal;
3. NEFT or RTGS
4. Over the Counter payment up to ₹ 10,000 through authorised banks restricted to per challan, per tax period by cash, cheque, or demand draft.

        Electronic cash ledger shall be debited by amount pertaining to:

1. Amount payable toward tax, interest, penalty, fees or any other amount payable as per return;
2. Amount payable toward tax, interest, penalty, fees or any other amount payable as determined by proper officer in pursuance of any proceedings;
3. Amount of tax and interest payable as a result of any mismatch;
4. Any amount of interest that may accrue from time to time;
5. Amount tax deducted under section 37 i.e. TDS;
6. Amount tax collected under section 43C i.e. TCS;
7. Amount payable under section 7(3) i.e. RCM;
8. Amount payable under section 8 i.e. Composition;

• Amount payable through cash ledger shall be after adjusting amount if any available under eletronic credit ledger in Form GST PMT-2 adjusted against payment of “Tax” only.
• Balance if any under eletronic cash ledger shall be eleigible for refund, subject to provision of section 54 of CGST Act, after adjusting tax, interest penalty, fees or any other payment.
• Amount paid will be reflected as per Rule 87 in “Electronic Cash Ledger” maintained at GST Portal.
• Due date for payment of tax has been linked with filing of return i.e. GSTR-3 or GSTR-3B i.e. on or before 20th of next month for all registered person except person registered under composition. However following period returns were extended through notification:

• TAX DEDUCTION AT SOURCE (TDS)

As per Section 51 of CGST Act, following persons are laible (deductor) for taxable supplies received to deduct tax @ 1% on payment made or credited to supplier (Deductee) exceeding Rupees Two lakh Fifty thousand;

1. Department or establishment of Central or State Government
2. Local authority
3. Governmental Agencies
4. Person or category of person notified (Not. 33/2017-CGST 15/09/2017):
   1. An authority or a board or any other body, —
      1. Set up by an Act of Parliament or a State Legislature; or
      2. Established by any Government,

with fifty-one per cent or more participation by way of equity or control, to carry out any function;

2. Society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860);
3. Public sector undertakings:

Provided that the said persons shall be liable to deduct tax from the payment made or credited to the supplier of taxable goods or services or both with effect from a date to be notified subsequently, on the recommendations of the Council, by the Central Government.

• Due date for payment is 10th of next month, in which tax as been deducted.
• Person responsible for deduction of tax at source are required to make payment through form GSTR-7 on value of supply excluding GST.
• Deductor to issue TDS certificate for amount deducted, within 5 days, from the date of payment of TDS to the Government, mentioning therein the contract value, rate of deduction, amount deducted & paid, etc on certificate and on failure to issue TDS certificate will be liable of penalty of ₹ 100 per day maximum of ₹ 5000.
• Deductee shall claim credit of TDS deducted in his eletronic cash ledger.
• No deduction is required to be made if location of supplier and the place of supply are in different State or Union Territory.
• Any excess or erroneous payment will be eligible for refund subject to provison of section 54 of CGST Act.

Provision for TDS as per 22nd Council meeting on 6th October 2017 are put on hold and will come in to force later.

• TAX COLLECTION AT SOURCE (TCS)

As per section 52 of CGST Act, TCS is required to be deposited by e-commerce operator on “Net Value of Taxable Supplies” made through it by other supplier and consideration for such supply is collected by operator.

• Rate of tax will be notified by Government but shall not exceed 1%.
• Net value of taxable supplies will be calculated on monthly basis i.e. aggregate value of taxable supply made less aggregate value of taxable supplies returned, but shall not include supplies covered under section 9(5) of CGST Act, i.e. supply of notified services on which e-commerce operator is liable to pay tax.
• Due date for payment is 10th of next month, in which tax has been deducted.
• Monthly statement in Form GSTR-8 required to fill electronically for outward supplies made as well as returned and amount collected.
• Supplier supplying through e-commerce operator will claim credit of TCS paid in his eletronic cash ledger.
• Operator to maintain following details:
  1. Supplies effected by such operator during any period; or
  2. Stock of goods held by operator in his godown or warehouses managed by operator for making supplies, where supplier has declared said place as additional place of business.
• Operator to furnish details within 15 days on service of notice, else will be liable for penalty which may extend to ₹ 25,000/-

Provision for TCS as per 22nd council meeting on 06th October 2017 are put on hold and will come in to force later.

• INTEREST ON DELAY PAYMENT OF TAX

As per section 50 of CGST act, every person is laible to pay interest as notified as per Notification 13/2017-CGST w.e.f. 01/07/2017 on following counts: