|S.No.||Particulars||TDS under Income Tax||TDS under GST|
|1||Deductor||Every person who is making the specified payments mentioned under the Income Tax. However, individual or HUF whose books are not required to be audited is exempted from deducting TDS.||The deductors specified in the GST Act are as under : i) Central Government or State Government (ii) Local authority (iii) Governmental agencies (iv) Other Notified persons.|
|2||Deductee||The Receiver of the payment shall deduct TDS.||The supplier of taxable goods or services or both shall deduct the TDS.|
|3||Taxability arises on||If the amount of payment increases the threshold amount specified under particular sections of the Income Tax Act, 1961 then only taxability shall arise.||If the total value of supply under a contract of taxable goods or services or both, exceeds Rs. 2,50,000/- then TDS is required to be deducted.|
|4||Rate of Tax||The rate of tax differs as specified under different sections. It may also depend upon the nature of the expense, For eg.
||The Rate of tax for intra-state supply is @ 2% [i.e. 1% for CGST & SGST/UTGST component each] & for inter-State supply it is @ 2% [as IGST].|
|5||Registration||As and when the liability to deduct TDS arises then it is necessary to take the Registration.||Provision of Compulsory registration is there for all the deductors of TDS. Further, if they are already registered under GST then also separate registration is required as a TDS deductor.|
|6||Payment||Generally, the 7th day of the next month is the due date for payment. However, for the month of March, the date of payment is 30th April*. For Gov deductors it is 7 April||The due date for payment is 10th of the next month.|
|7||Return||The various types of returns are 26Q,24Q,27Q etc.||The TDS Return is filled in FORM GSTR-7.|
|8||Credit||The amount of TDS deducted during the year reflects in Form 26AS. Further, the credit of TDS can be taken while filing the ITR.||The amount of TDS deducted would be available in FORM GSTR 2A/4A and credited in receiver’s electronic cash ledger.|
|9||Certificate||TDS certificates are issued by deductor (Payer) to the deductee (Payee) from Dept website. Examples of TDS Certificates are Form 16, Form 16A, Form 16 B and Form 16 C.||The deductor shall issue the deductee a certificate in FORM GSTR 7A.|
|10||Interest and late fees||Late fees is levied amounting to Rs.200 per day but shall not exceed the amount of TDS.||If the certificate is not issued within 5 days of crediting then the deductor shall pay a late fee of Rs. 100/- per day under CGST Act & Rs. 100/- per day under SGST/UTGST Act respectively. However, the maximum amount shall not exceed Rs.5000/-.|
TDS under Income Tax Act is a well-known term but the same under GST has so much ambiguity. Hope, after going through the above table you must got a better understanding of the TDS concepts under both these acts. For detailed knowledge about TDS on GST or All insights about TDS in Income Tax, must read our blogs!!
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