{"id":8094,"date":"2024-10-25T08:56:22","date_gmt":"2024-10-25T08:56:22","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=8094"},"modified":"2024-10-25T08:57:16","modified_gmt":"2024-10-25T08:57:16","slug":"new-tds-provisions-under-gst-for-metal-scrap","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/new-tds-provisions-under-gst-for-metal-scrap\/","title":{"rendered":"New TDS provisions under GST for Metal Scrap"},"content":{"rendered":"

\"GST<\/h2>\n

Summary of the GSTN Notification No. 25\/2024-CT on TDS for Metal Scrap under GST :\u00a0<\/span><\/h2>\n

On October 9, 2024, the government issued Notification No. 25\/2024-CT, introducing TDS compliance for the supply of metal scrap under the GST framework, effective from October 10, 2024.<\/p>\n

Key Points of TDS @2% on Metal Scrap Purchases<\/h3>\n
    \n
  1. Applicability of\u00a0TDS @2% on Metal Scrap Purchases\n
      \n
    • TDS at 2% (split as CGST 1% and SGST 1% or IGST 2%) is to be deducted on purchases of metal scrap from registered suppliers in B2B transactions.<\/li>\n
    • Applicable only when the supply value of scrap goods exceeds \u20b92.5 lakhs.<\/li>\n<\/ul>\n<\/li>\n
    • Calculation Basis: TDS should be calculated on the value of supply (excluding CGST, SGST, IGST, UTGST, and TCS under Income Tax). The deducted TDS will reflect in the supplier\u2019s GSTR-2A and, upon filing, will be credited to their electronic cash ledger.<\/li>\n
    • Return and Filing: Buyers deducting TDS must file Form GSTR-7 by the 10th of the following month, along with payment of TDS liability. GSTR-7A acts as a TDS certificate for the supplier, similar to Form 16A under Income Tax.<\/li>\n
    • Claiming TDS: Suppliers can claim the TDS credit monthly as it reflects in their Cash Ledger and can be used for tax payments or refunded immediately. The deductor is required to file a monthly TDS return in Form GSTR-7.\u00a0 TDS certificates are issued to suppliers (deductees) in Form GSTR-7A.<\/li>\n
    • Registration: Buyers must register separately for TDS under GST using Form REG-07. Required documents include the DDO\/Tax Deductor\u2019s\u00a0 PAN, Aadhar, and proof of business premises. Per the advisory dated October 22, 2024, taxpayers must select \u201cOthers\u201d under the “Constitution of Business” and specify “Metal Scrap Dealers.”<\/li>\n
    • Effective Date: The TDS on metal scrap is applicable from October 10, 2024.<\/li>\n
    • Inter-Branch Transactions: TDS also applies to inter-branch sales and purchases of scrap.<\/li>\n
    • Exceptions: TDS under GST is not applicable to:\n
        \n
      • Imports of metal scrap.<\/li>\n
      • Purchases from unregistered persons (subject to RCM @18% instead).<\/li>\n<\/ul>\n<\/li>\n
      • Applicable Chapters: The provision applies to metal scraps under Chapters 72-81 of the Customs Tariff Act, covering iron, steel, copper, nickel, aluminum, lead, zinc, tin, and other base metals.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

        Summary of the GSTN Notification No. 25\/2024-CT on TDS for Metal Scrap under GST :\u00a0 On October 9, 2024, the government issued Notification No. 25\/2024-CT, introducing TDS compliance for the supply of metal scrap under the GST framework, effective from October 10, 2024. Key Points of TDS @2% on Metal Scrap Purchases Applicability of\u00a0TDS @2% …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[933],"tags":[1123],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/8094"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=8094"}],"version-history":[{"count":4,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/8094\/revisions"}],"predecessor-version":[{"id":8220,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/8094\/revisions\/8220"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=8094"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=8094"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=8094"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}