Effective October 10, 2024, as per Notification No. 25/2024-Central Tax, all registered persons receiving supplies of metal scrap (classified under Chapters 72 to 81 of the Customs Tariff Act, 1975) from other registered persons must deduct Tax Deducted at Source (TDS) under Section 51 of the CGST Act, 2017.
Issue: Reporting TDS Deducted in October 2024
Numerous taxpayers have reported difficulties in filing returns for TDS deducted during October 2024. The issue arises because:
- GST Registration Delays: Many taxpayers applied for GST registration in October 2024, following the notification, but their registrations were only approved in November 2024.
- System Design Limitation: The GSTN system does not allow filing returns for tax periods preceding the registration month. Consequently, the October 2024 return is unavailable in the dropdown menu for affected taxpayers.
Resolution: Consolidated TDS Reporting in November 2024
To address this challenge, the GST authorities have provided the following solution:
- Taxpayers who received GST registration in November 2024 but deducted TDS from October 10, 2024, to October 31, 2024, should consolidate the TDS amount with their TDS for November 2024.
- This consolidated amount should be reported in the GSTR-7 return for November 2024.
Steps to File the GSTR-7 Return
- Log in to the GST portal.
- Navigate to the Returns Dashboard and select November 2024 in the dropdown menu.
- Enter the consolidated TDS amount (for October and November 2024).
- Verify and submit the return.
Need Assistance?
If you encounter any issues, you can contact the GSTN helpdesk for support.
Key Takeaways
- Registered persons dealing in metal scrap must deduct TDS under the CGST Act, 2017.
- Delayed registrations in November 2024 may affect October 2024 TDS reporting.
- Consolidate October and November 2024 TDS amounts in the November 2024 GSTR-7 return.
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This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event, RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.