Registration as deductor separately

[LAKSHMINARAYANAN TR]

Dear All

Request your thoughts for one our client who is a Public Sector understaking has GSTIN as Taxpayer already, u/2 52 should they registere again as deductor on top of their GSTIN. Can they use existing GSTIN for both purposes i.e. filing GSTR 7 and 1,2,3? Kindly clairfy.

Have a Nice day

[KASTURI SETHI]

Separate registration for TCS is not required. Normal GST registration will serve the purpose.An PSU is not fully Govt.

[Alkesh Jani]

Sir, The business vertical as defined under Section 2(18) of the CGST, 2017 is reproduced below:-

(18) “business vertical” means a distinguishable component of an enterprise that is engaged in the supply of individual goods or services or a group of related goods or services which is subject to risks and returns that are different from those of the other business verticals.

Explanation.––For the purposes of this clause, factors that should be considered in determining whether goods or services are related include––

1. the nature of the goods or services;

2. the nature of the production processes;

3. the type or class of customers for the goods or services;

4. the methods used to distribute the goods or supply of services; and

5. the nature of regulatory environment (wherever applicable), including banking, insurance, or public utilities;

From above it is clear that if PSU is have different vertical then separate registration is required. if the nature of business carried out by PSU is mentioned then our experts may be in position to guide you well

[LAKSHMINARAYANAN TR]

Many thanks for the feedback, PSU as per notification 33/2017- Central Tax dt 15/09/2017, identified as one of deductor for the purpose of section 51. Question is can they use their existing registration( as normal taxpayer) for filing GSTR 7 also or should they go for separate registration. Thanks in advance.

[Alkesh Jani]

Sir, in my point of view you need to go for separate registration as you will not be able to file GSTR-1 and GSTR-7 with same GSTIN.

[KASTURI SETHI]

Is deduction of TCS and TDS under GST Acts a "supply" of Service or Goods ? If not, why separate registrationm necessary ? ITC is to be taken by deductee and not deductor.

[LAKSHMINARAYANAN TR]

Dear Sir

Please refer clause vi and iX under section 24 of CGST Act, where registration as deductor or collector is mandatory in nature. I have the same doubt as Alkesh Jani pointed out that we can't submit both GSTR 1 and GSTR 7 using the same GSTIN. Even though, filing of GSTR 7 suspended for now, I don't think the same is going to be made available on the normal taxpayer's return dashboard. For this purpose separate registration is require on top of directions u/s 24. We badly need to simplification as this PSU has already 30+ GSTIN, on top of that this TDS would add equally the same amount of registrations I guess.

Can we register one deductor registration for pan india basis or should that also broken down at a state level?

many thanks

[rajkumar shukla]

Please see section 24 of cgst act.It states that...... notwithstanding anything contained in sub section1 of section 22, the following category of person shall be required to be registered under this act...(vi) persons who are required to deduct tax under section 51 whether or not separately registered under this act.

the words whether or not indicate that it would be a separate registration and obviously state wise as there is no concept of pan india registration in GST.

[KASTURI SETHI]

Sh.Shukla Ji,. Thank you Sir.

[rajkumar shukla]

Hope the query is fully answered

[LAKSHMINARAYANAN TR]

Thank you Shri Shukla ji

[KASTURI SETHI]

Yes Sir I am fully satisfied.

[KASTURI SETHI]

Dear Querist,

Every taxation law is framed to protect revenue. There is no rhyme or reason to frame law for separate registration in respect of deductor of TCS and TDS under GST. Govt.has deferred implementation of TCS and TDS till 30.6.18. There is solid reason behind this. Govt. realizes that it would cause undue harassment to the assessees. Meanwhile, you have golden opportunity to make representation to GST Council for omission of such mandatory provisions in GST laws. De facto, there is no necessity for framing such provisions as revenue can be protected with the already GSTIN of the deductor. As you are well aware GST Acts have been implemented by Govt. in hurry. That is why so many changes/amendments have been made.

So make a representation to the Chairperson, GST Council through your Association of Trade. If you quit now, grievances will not be redressed. It is my experience that GST Council listens to the grievances sincerely. People have got relief on being pointed out by the Trade.

[Ganeshan Kalyani]

Compliance for 30 GSTIN you are doing adding equal number of compliance would be a challenge for you . however GSP 's have solution for filing returns. they simply write program in your software which picks the data from your accounting software and files the return . however the onus remain with you on the correctness of the return filed.

[Ganeshan Kalyani]

GST has created lot of business and job apportunity.

AI Summary

TDS/TCS under GST may require separate, state-wise registration for deductors and distinct GSTR-7 filing obligations.
The forum debates whether a PSU with an existing GSTIN must obtain separate registration to act as a deductor under the TDS/TCS regime. Contributors cite the statutory registration requirement for persons who must deduct tax and interpret it as creating a separate, statewise registration obligation; they also stress that supplier returns and deductor returns cannot be filed using the same GSTIN. The government's deferment of implementation and technological filing solutions are noted as practical considerations.