GSTN Issues Advisory for Reporting TDS Deducted by Scrap Dealers (October 2024)
The Goods and Services Tax Network (GSTN) released Advisory No. 550 on November 26, 2024. This advisory addresses issues related to reporting Tax Deducted at Source (TDS) by scrap dealers for October 2024, as mandated by Notification No. 25/2024-Central Tax.
Key Points of the Advisory
- Applicability
From October 10, 2024, registered persons who purchase metal scrap (falling under Chapters 72 to 81 of the Customs Tariff Act, 1975) from other registered persons must deduct TDS under Section 51 of the CGST Act, 2017. - Identified Issue
Many taxpayers who applied for GST registration in October 2024 encountered difficulties filing TDS returns for that month. Since their GST registrations were approved in November 2024, the GSTN system did not permit them to file returns for periods before their registration date. - Proposed Resolution
Taxpayers who deducted TDS in October but received GST registration in November should include the consolidated TDS amount for the period from October 10, 2024, to November 30, 2024, in their GSTR-7 return for November 2024. - Filing Instructions
- Accurately report the total TDS amount in the November 2024 GSTR-7 return.
- For additional support, contact the GSTN helpdesk.
Impact and Compliance
- For Scrap Dealers
The advisory provides a clear resolution for reporting TDS deductions when GST registration approvals are delayed. - For Tax Authorities
These guidelines ensure taxpayer compliance without penalizing delays caused by system constraints.
By reporting the TDS amounts in the November GSTR-7 return, taxpayers can fully comply with TDS provisions under the CGST Act, 2017, while avoiding any penalties or complications.
