A.    Table 5 of GST Form RET -1

This table pertains to the amount of TDS and TCS credit received in electronic cash ledger

What is TDS in GST Form RET-1 in Table 5?

• TDS is deducted at the rate of 2% in case of works contract undertaken with Government, where the total value of such supply, under an individual contract, exceeds two lakh fifty thousand rupees.
• TDS is to be deducted by the recipient when payments are made to the supplier and such TDS is to be paid within 10 days from the end of the month in which tax is deducted.
• Person deducting tax has to issue the TDS certificate in form GSTR-7A to the concerned person within 5 days of depositing the tax to the government.
• Deductors are required to file GSTR-7 within 10 days from the end of the month. . Deductee is required to accept/reject the TDS credit on the GST portal by filing ‘TDS/TCS Credit Received’ tab.
• On accepting the amounts will be credited in the electronic cash ledger of the deductee (i.e. the supplier)
• If any excess amount is deducted and paid to the government, a refund can be claimed as this is not the tax amount that the government has a right on.
• If the deducted amount is already added to the electronic cash ledger of the supplier, the amount so added cannot be got back as a refund by the deductor. Deductee can claims a refund of tax subject to refund provisions of the act.

What is TCS in GST Form RET-1 in Table 5?

• E-commerce operators are required to collect and deposit tax at the rate of 1% from each transaction made through them. Thus dealers or traders supplying goods and/or services through e-commerce operators will receive payment after deduction of TCS @ 1%.
• E-commerce operators have to file GSTR-8 by 10th of the next month in which the tax was collected. And deductee is required to accept/reject the TCS credit on the GST portal by filing ‘TDS/TCS Credit Received’ tabs.
• On accepting the amounts will be credited in the electronic cash ledger.

Table 5 of the new simplified GST forms provides with the details of TDS and TCS credited in cash ledger during that filing period.

B.    Table 6 of GST Form RET -1

This table pertains to interest and late liability details

Interest has to be paid by every taxpayer who:

• Makes a delayed GST payment i.e. pays GST after the due date.
• Claims excess Input Tax Credit
• Reduces excess Output Tax Liability
• Late reporting of invoices of previous tax periods
• Rejection of accepted documents by the recipient
• Interest and late fee to the extent of late filing of return, making late payment of taxes, uploading preceding tax periods’ invoices shall be computed by the system. Other interest due to reversals etc. shall be entered by the taxpayer on self-assessment basis

There are only 2 rates of interest i.e. 18% and 24%. The present rate of interest on the delayed payment of tax liability is 18% per annum on unpaid GST. The higher rate of interest i.e. 24% is applicable only in case of contravention of a certain provision of section 42 (in case of any undue or excess claim of input tax credit) & 43 (in case of any undue or excess reduction in output tax liability) of the CGST Act. In addition to the interest, penalty could also be levied on the taxpayer under GST for erroneous return filing, wilful misstatement or fraud. The Interest has to be calculated from the next day on which tax was due.

Late Fees (Liability):

When a GST Registered business fails to file GST Returns within the prescribed due dates, late fees is charged. The late fee is also applicable for the delay in filing NIL returns.

Currently late fee is applicable on returns GSTR-3B, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, GSTR-8, GSTR-7 and GSTR-9 only as follows

• All returns other than Annual Returns: Rs. 200 per day (Rs. 200 IGST /Rs. 100 CGST + Rs. 100 SGST) of default up to a maximum of Rs 5,000.
• Annual Returns (GSTR 9): Rs. 200 per day (Rs. 200 IGST /Rs. 100 CGST + Rs. 100 SGST) of default up to a maximum of 0.25% of Turnover in the state where he is registered.

The interest and late fee is currently calculated automatically by system and return cannot be filed without payment of such interest and late fee.

C.    Table 7 of GST Form RET -1

This table pertains to payment of tax liability

1. A taxpayer needs to make payment of tax liability in cash after utilizing the ITC. However, any payment of interest or penalty should be made in cash.
2. Taxpayers should settle their liabilities in the following order: Dues related to previous tax period will be adjusted first.
3. Dues related to current tax period will be adjusted second.

Any other amount payable under GST law will be adjusted finally.

Tax Payable: Amount shall be total of liability + Interest + Late fees + Cess. IGST liability is required to be paid off first utilizing IGST credit and then CGST/SGST credit.

Tax already paid, if any (Only for quarterly filers): These details will be populated from PMT-08 filed by the Quarterly return filers

Adjustment of negative liability of previous tax period: This amount represents the negative liability arising from the amendment return which is carried forward in main return for adjustments.

Paid through ITC: This amount represents the total tax liability which is adjusted through ITC. IGST credit is to be utilized first before utilizing CGST/SGST credit. If IGST credit is available after adjustment of IGST liability, then such credit will be utilized against CGST/SGST liability in any order.

Paid in cash: This amount represents total tax, Cess, interest, late fees & penalty adjusted in cash

D.    Table 8 of GST Form RET -1

This table represents the amount of refund that the taxpayer wants to claim from the electronic cash ledger.

Refund can be claimed for Integrated Tax, Central Tax, State/ UT Tax, penalty, interest, fees or any other amount paid by the taxpayer. Currently, GST RFD-01A form has to be filled by the taxpayer to claim the refund of excess amount in electronic cash ledger. The excess GST paid can be claimed as a refund within 2 years from the date of payment. The disbursement is made once the concerned Tax Official processes and sanctions the refund application.

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