Procedure for Registration of TDS deductor in GST

Who is Liable to Deduct TDS Under GST Law?

• Any department or establishment of the Central Government or the State Government.
• Local authorities
• Governmental agencies
• Persons or categories of persons as notified by the government.
• An authority, board, or any other body set up by the parliament, state legislature, or the government, with 51% equity control owned by the government.
• A society established by the Central or the State government or a local authority. The society must be registered under the Societies Registration Act 1860.
• Public Sector Undertakings.

Liability to Deduct TDS Under GST and TDS Rate

Deduct TDS at a 2% rate on payments made to suppliers of taxable goods and/or services if the total contract value exceeds Rs. 2,50,000. However, no TDS deduction is needed if the supplier’s location and place of supply differ from the recipient's registered state.

Given below are the conditions where TDS is applicable and the TDS rates -

What are the Requirements for Registration of TDS Deductors?

Anyone required to deduct TDS must register without any threshold limit. GST registration can be obtained using an existing Tax Deduction and Collection Account Number (TAN) issued under the Income Tax Act without needing a PAN. Therefore, having a TAN is mandatory.

How is the Value of Supply on Which TDS Shall be Deducted be Considered?

For TDS deduction purposes, the supply value should exclude any tax shown on the invoice, meaning TDS is not applied to the CGST, SGST, or IGST components.

For instance, if Supplier A provides goods worth Rs. 5,000 to B at an 18% GST rate, B will pay A Rs. 5,000 (supply value) + Rs. 900 (GST) and remit Rs. 100 (2% of Rs. 5,000) as TDS to the government. This shows that TDS is only applied to the supply amount, excluding the GST portion.

What is the Procedure for Registering as Tax Deductor at Source?

To register as a Tax Deductor on the GST Portal, follow these steps:

1. Visit the GST Portal: Go to https://www.gst.gov.in. On the home page, select Services > Registration > New Registration.
   
   
   
   The Application Form
   The application is divided into two parts: Part A and Part B.
   

   Part A:

2. New Registration Page: Select New Registration.
3. Select Taxpayer Type: Choose ‘Tax Deductor’ in the ‘I am a’ dropdown list.
4. Select State/UT: Pick the state for which registration is needed.
   Note: If you lack a physical presence in the state, mention the State/UT in Part A. You may later specify a different principal place of business in Part B if necessary.
5. Enter Legal Name: In ‘Legal Name of the Tax Deductor’, enter the name as listed in the PAN database.
6. Enter PAN: Provide the PAN.
   
   
7. Enter Contact Information: Input the Primary Authorized Signatory’s email and valid Indian mobile number.
   Note: OTPs will be sent to both the email and mobile numbers for verification.
8. Captcha Verification: Enter the characters shown in the image.
9. Proceed: Click PROCEED.
   
   
10. Confirm GSTINs/IDs: Upon proceeding, the portal will display all GSTINs, Provisional IDs, UINs, and GSTP IDs linked to the same PAN across India. Click PROCEED to continue.
    
    
    
    Note:
    You can download existing registration details in PDF format by clicking DOWNLOAD.
    Status Color Codes:
    
    • Green: Approved Registration Application
    • Red: Rejected Registration Application
    • Orange: Pending Processing/Pending Order for Registration Application
11. OTP Verification: After validation, you’ll reach the OTP Verification page. Enter the OTP received on your mobile number in Mobile OTP and the one sent to your email in Email OTP. OTPs are valid for 10 minutes.
    Note: Mobile and email OTPs are sent separately. If an OTP is invalid, click ‘Click here to resend the OTP’.
12. Proceed: Click PROCEED to continue.
    
    
13. Temporary Reference Number (TRN): A 15-digit TRN will be generated and displayed. Click PROCEED.
    Note: You will receive the TRN via email and SMS, along with its expiration date.
    Alternatively, you can use the TRN to log in by selecting Services > Registration > New Registration and choosing Temporary Reference Number (TRN).
    
    
    
    

    Part B

14. Enter TRN: On the login page, enter your Temporary Reference Number (TRN) and complete the captcha.
15. Proceed: Click PROCEED to display the Verify OTP page. You will receive new OTPs on your mobile and email for verification.
    
    
16. Enter OTPs: In the Mobile / Email OTP fields, enter the OTPs received (valid for 10 minutes).
    Note: OTPs sent to mobile and email are identical. If needed, click ‘Click here to resend the OTP.’
    
    
17. Access Saved Application: You’ll be redirected to ‘My Saved Application’. Under the Action column, click the Edit icon.
    Note: Applications not submitted within 15 days will expire, along with all associated data. The application status will remain Draft until submitted, then change to ‘Pending for Validation’.
    
    

Filling the Registration Form

The application has five tabs: Business Details, Drawing and Disbursing Officer, Authorized Signatory, Office Address of Tax Deductor, and Verification.

1. Business Details Tab: Fill in details for your business.
   
   • Trade Name: Enter the business trade name.
   • Constitution of Business: Select the type, which will be validated with the PAN.
   • Sector/Circle/Ward/Charge/Unit: Choose the appropriate option.
   • Commissionerate, Division, and Range Code: Select the relevant codes.
   • Click SAVE & CONTINUE.
     
     
   Note: For applicants registering in the state of Sikkim, a tooltip will appear on the screen displaying details of the areas covered under the selected jurisdiction.
   
   
   
2. Drawing and Disbursing Officer Tab: Fill in the officer’s details.
   
   • Personal Information: Enter the officer’s name, date of birth, contact details, and gender.
   • Identity Information: Enter designation and PAN.
   • Residential Address: Fill in address details, district, and pin code.
   • Document Upload: Upload the officer’s photograph (JPEG, max 100 KB).
   • If the officer is also the Authorized Signatory, select the checkbox for ‘Also Authorized Signatory.’
   • Click SAVE & CONTINUE.
     
     
3. Authorized Signatory Tab: Enter details for up to 10 authorized signatories.
   
   • If ‘Also Authorized Signatory’ was selected, this section is skipped.
   • Otherwise, enter signatory details and click SAVE & CONTINUE.
     
     
4. Office Address of Tax Deductor Tab: Enter office address details.
   
   • Address: Provide principal business address and pin code.
   • Contact Information: Provide official contact details, including email, phone, and fax.
   • Additional GST Registration: Indicate if other GST registrations exist in the same state.
   • Nature of Premises Possession: Select the type of premises.
   • Document Upload: Upload proof of address (PDF or JPEG, max 1 MB).
   • Click SAVE & CONTINUE.
     
     
5. Verification Tab: Confirm and authenticate form details.
   
   • Verification Checkbox: Select to confirm.
   • Authorized Signatory: Select the authorized signatory’s name.
   • Place: Enter the form-filing location.
   • Complete digital signing
     
     
     • For DSC:
       Click SUBMIT WITH DSC, then PROCEED, select the certificate, and click SIGN.
     • For EVC:
       Click SUBMIT WITH EVC, enter the OTP sent to the registered mobile/email, and click VALIDATE OTP.

Completion: A success message will appear, and you’ll receive the acknowledgment with an Application Reference Number (ARN) within 15 minutes via email and SMS.

If you are a TDS deductor, it is mandatory for you to register yourself under GST. You can follow the steps mentioned in this article to complete GST registration as a deductor. If you find GST registration complicated or time-consuming, you can book experts from Tax2win. Our tax experts can not just help you with GST registration but also ensure accurate GSTR filing. Book an expert now!