GOVERNMENT OF ANDHRA PRADESH

aEsaq
The Andhra Pradesh Goods and Servlces'fax M,2077 (Act No.16 ot 2OL7) -
Guidellnes for deductions and deposits of TDS by the DDO under GST - Orde6 -
Issued.
REVENUE (COMMERCIAL TAXES-II) DEPARTMENT

G.O.MS.No.4a2 Dated:24-09-2018
Read the following:

1) The"-Andhra Pradesh Goods and Services Tax Act, 2Ot7 (Act No.16 of
2017) published in Extraordinary issue ofAndhra Pradesh Gazette No.16,
Part.IV.B, Dtr07-O6-2O17.
2) Govemment of India, Ministry of Finance, Department of Revenue, Circular
No. 65/39/2018-DORF.No.S.31OlV11/2OI8-ST-I-DoR,New Dethi, Dated the
14th September, 2O18.
3) Letter from the CCST in Ref.No.C,S;fl44t2,ie, dated 19.09.2018.

OBDEE:
Section 51 of the APGST Act 2017 provides for deduction of tax by the
Govemment Agencies (Deductor) or any other person to be notified in this
regard, from the payment made or credited to the supplier (Deductee) of taxable
goods or services or both, where the total value of such supply, under a contract,
exceeds two lakh and fifty LhousanllEpgg:: The amount deducted as tax under
ffit by deducto. within ten days after
the end of the month in which such deduction is made along with a retum in
FORM GSTR-7 givang the details of deductions and deductees. Further, the
deductor has to issue a certiftcate to the deductee mentioning therein the
contract value, rate of deduction, amount deducted etc.

2. As per the Act, every deductor shall deduct the tax amount from the
payment made to the supplier of goods or services or both and deposit the tax
amount so deducted with the Govemment account through NEFT to RBt or a
cheque to be deposited in one of the authorized banks, using challan on the
common portal. In addiuon, the deductors are entrusted the responsibility of
filing retum in FORM GSTR-7 on the common portal for every month in which
deduction has been .nade based on whtch the benefit of deduction shall be made
available to the deductee. The DDO5, who have to deduct GST from the bills are
required to register with the common portal as tax deductors and get the GST
Identification number for the purpose of TDS. There is no need to deduct tax
from the bills where the supplies are not taxable. For example, there is no need
to deduct tax from Panchayats, who undertake Cnly activities in relation to
functions under Article 243G of the Constituuon, as such activities are treated
neither supply of goods nor supply of services as per the Govemment of India
notification no 14l2o17-Central Tax (Rate) dated 28.06.2017 and State GO.MS.
No.261, Reveoue (CT-II) Dept., dated 29.06.2017.

3. The subject section which provides for tax deduction at source was not notified
to come into force with effect from 1* )uly,2017, the date from which GST was
introduced. Government of India has notlfied that these provisions shall come
into forc€ with effect fiom 1* October, 2018, vide Notification No. 5Ol2O14 -
Central Tax dated 13th September, 2018 and the Govemment of Andhra Pradesh
also issued notificataon in GOM5 No.476, Revenue (CT-U) department, dated:2o-
o9-201A.

![, For payment process ofTax Deduction at Source under GST, two opuons can
be followed, which are as under:

Option I: Generauon of challan for every payment made dudng the month
PTO
t

ii2rr
from the bllls on weekly' monthlY or any
Option II: Bunching of TDS deducted
periodic manner

****t+*$ru#**n";*e=+:rf'mgt
described as under:
by Sre bDO
Optron I - Individual BilFwise Deduction and its Deposit
GsT TDS
wllt have to dedud as well as dePosit the it ln the
5. In this opuon, the DDOg.n"ra.ln-g;
for each bil individualy Ov .PIN iCttittan) ana mentioning
Bill itself. \
Following process shall be followed by
the ODO ln this regard:
7.
Sanction' The
i. The DDO shall prepare the Bill based on the Expenditure
Hr;gl'n1":lg,ti:#nlr**eJ:1:i{ffi B:{8'}':*'"s'""*
:'*:Ji["+'-T*iit"':',t]$e+ilp#*.,,'1",..s#i:].Tf #
(usins li: G.sJrt)-
I. The oDo shall logln into the GSTN Portal . -itd
and the relevant component (e'g' li
iii.

*"*r.ri+li'***'"1'H:ffi u:iqF'::i1ii,fl:.;s'{1f, tT:

mode.
payment portal for submission to
The DDo shall preparc the bill on state
the respective payment authorities'

v. In the Bill,
and
a) the net amount payable to the Contractor/Suppller/Vendor ;

b) 29lo as TDS will be specified

vi. In case of NEFT/RTGS mode' the DOO

will have to menuon' the CPIN
.',iii.i)I iei'|as ueneflciary1. and the IFsc
Number (as beneficlary,s uoo,n. t make payirent in favour of
code of RBr with the request ro p"y##;i'td;-bi
RBI with these credentials'

Ili*";i, il1=,.Jl
rt'p crrioue maY then be
;;,;;il
T..aseoftheOTCmode,theDDOwillhaveto--requestthe,payment
ir.id;
dePosite( *J";U. ;'".U,1,, llli,"jll"#i._?.""t;
Ji! i'".t so selected bv the DDo'
"itiJ"iJ

*f;.r*+."m*"g*;1*x*ltt'[#s,"#,t#i"mm
i;;,",r.'r"*?:^ii?'Jff S'iE:I&R..''ffiJ.frf*'fi I'eff fl
"';'*'lL+i':'"v'"
Contd"P'3
 ::3;i
R?q,d will be helptul at the Ume of f, ng Monthly Retum (FORM GSTR-7) by the
DDO-- The ODO may also make use of the offlin! uulity ;vailabte on th; GSrN
Portal for this purpose.

x.The DDO shall generate TDS Certificate through the cST portat in FORM
GSTR-7A after 6lin9 of Mon$rly Retum.

Option II - Bunching of deductions and ats deposit by the DDO

8. Option-I may not be suitabte for DDOS who make large number of payments
an a month as it would require them to make large numbel of challans iuring the
month. Such DDOS may exercise this option wherein the DDO will have to dduct
tle TPS lgm each bill, for keeping it under the Suspense Head. However,
deposit of thls bunched amount ftDm the €usp€nse Head can be made on a
weekly, monthly or any other periodic basis,
9. Following process shall be followed by the DDO in this regard:

i. The DDO shall prepare the Sill based on the Expenditure Sanction. The
Expenditure Sanction shall contain t}le (a) Tobi amount, (b) net amount
payable to the Contractor/Supplier/Vendor and (c) the 206 iDS amount.

. Th€ DDO shall prepare the bill on payment portal of State Govemment for
submission to the respective payment auth;rities.
t. In the Blll, it will be specified

a. the net amount payable to the Contractor; and

b, 2c% as TDS

iv. The TOS amount shall be mentioned in the BIll for booking in the Suspense
Head.

v. The_ DDO will require to maintain the Record of the TDS so being booked
unde. the Suspense Head so that at the time of preparing the CPIN f; maktng
payment on weekly/monthly or any other periodic basis, the total amount coula
be easily worked out.

vi. At any periodic interval, when DOO needs to Jeposit the TDS amount, he
will prepare the CPIN on the GSTN Portat for the a.hount (atready booked under
the Suspense Head).

vii. While 9ene6un9 the CPIN, the DDO wilfiave to select mode of payment as
either (a) NEFT/RTGS or (b) OTC. In the OTC mode, the DDO wi have to setect
the Bank where the payment will be deposited through OTC mode.

vlii. The DDO shall prepare the bill for the bundted TDS amount for payment
through the concemed payment authoaty. In tfie Bill, the DDO will give
reference of all the earlier paid bills from whach 2 TOS was deducted and kept
in the suspense head. The DDO may also attach a certified copy of the record
maintained by him in this regard.

ix. The payment authority will pass the bill by clearing the Suspense Head
operated against that partictlar DOO after exerolsing n"*** *.*aonr.-r-O
 ::4::

case of NEFT/RTGS mode, the DDO will have to mention. the CPIN
x. In beneficiary) and the IFSC
Number (as beneficlan/s .oo'nt 'iuiu"tl' iBI
(as
payment in favour of
code of RBI with the rcquest to payri.niiirboritl.to
make
RBI with these credentials.

xi- ln case have to request- the payment

of the OTc mode, tfre DDO wilt of
lr.nialar:t''tir-Coremment cirequl ln f;vour one of the authorized Banks'
fi; t;:]";-. ;a-y- ulln oe oepostei-ato;s witn the cPrN with anv of branch or
so selected by the DDo'
itt" u"tt J.i."o B;nk
a CIN will bq generated by the RBl/Authorized
xli. UDon successtul payment, po*ut' ttis will get "edited
il"iii,i riir-r i. .n".Jo Lr".t6ni-iiv *ii*t utt 6srn
in the GSTN P-ortal' This can
ffil":id;; c;'ir-icdger or ute'concemed DDo
bv the DDo anvtime on GsTN
;:'.,vl;;';ilut.-a'.tu=,ri or crN ca; be noted
portal using his Login credentials'

xiii. rhe DDo shourd maintain a -T*:'."r"rffitf;,*ffil'JHL'S.^#fl5fl

to keeD tecord of all TDS dedudjon
willbehelDfulatthe6meotrrringion-thtYnet.,m(ronuGSTR-7)bytheDDo. Portal tur
ii! i,"oiiHi, JrlJ ;"i. ,tu or uit'o6''nt'Gtitv t'iituutt o" the GsrN
this purpose.
by 1os of the following month
xiv- The DDo shall file tlle Retum in FORM GSTR-7
in FoRM
xv. The DDo shall generate TDs Certificate through the GSTN Portal
GSTR.TA

should instruct all concemed DDOS

10. Hence, Departments in the Govemment
6'f.tlo!Y the above ptotto"'.-rot pavment of Gsr TDs
amount
i;;;i;;
i.Jraui f-- p"V-ents to be made to suPpllers'
and also impart
11. The Ftnahce department may issue suitable instructions
iliessary training to all DDos concemed'
this Order may please-te brought to
12. Dfficuttv, if any, In implementatlonorofchlef
ir: ;il;ii.;;.,i! (grl b"putt'""nt commissioner of state Taxes
issue of the
The above notification will be published in an Extra_Ordinary
andhra Pradesh Gazette, Dated:25-09-2018'
OF ANDHRA PRADESH)
(BY ORDER ANO IN THE NAME OF THE GEVERNOR
DT.D.SAMBASIVA RAO
SPECTAL CTIIEF SECRETARY TO GOVERNMENT

To
all the Secretariat DePartments
iii il il;;;ifi;Epartments throush the concemed secretariat
Deoartment.
-rhF rrire.tor of Treasurles and Accounts'
paos'
lii tr,. oittaa t..u=ury omcers and
j'c;;i;;;;';;Ln6r
fi or state Tax, rndhra Pradesh' vijavawada'

*Poi.j.to. AdministraUon (vigilance & Enforcenent)

c".t.rul, Generalpunolt
"* 7lL'--,'i-."i- z.i Roor, t'ietrm Bus'S6tion complex' Mjayawadr'
m. plillo ipi.Lr chief s6cretary to chief Minister'
+il; ;.;: ;; H"';;.'ble Minister (Finance & commercial raxes)'
ii! i,.i.JtiiJspi.c.s 1cr, excis-e ana Reen',& stamps)'
 The Law (H) Department.
Sf/sc.

// FORWARDEO:: BY ORDER //
,r' SECTION OFFICER

ANNEXURFA
Record to be maintahed bv the DDO for filino of GS-IR7

Dr.D.SAMBAS,VA RAo
SPECIAL CHIEF SECRETARY TO GOVERNMENT

IITRUEcowll

SECTION OFFICER