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CA Intermediate · Taxation · Tax Deduction at Source and Collection of Tax at Source

Which of the following statements about the TDS certificate under GST is correct for a deductor who deducted tax under section 51 of the CGST Act?

The deductor must issue the TDS certificate in Form GSTR-7A to the deductee within 5 days of paying the deducted amount to the Government. If delayed, a late fee per day applies up to a prescribed maximum.

  1. ACertificate in Form GSTR-7A must be issued within 5 days of credit of the amount deducted to the Government, with a late fee for delayCorrect
  2. BThe certificate is issued by the deductee to the deductor within 5 days
  3. CCertificate must be issued within 30 days of deduction with no late fee
  4. DNo certificate is needed as the amount is auto-credited to the deductor's cash ledger

Explanation

The deductor must furnish to the deductee a certificate (Form GSTR-7A) within 5 days of crediting the deducted amount to the Government, failing which a late fee applies per day of delay up to a maximum cap. The deductee's electronic cash ledger is credited, not the deductor's, and the certificate is issued by the deductor.

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