Circular No.ES/87/2017-18 June 28, 2017
To: Members of the Council
Sub: Implementation of GST Act 2017- Role & Responsibility of Drawing & disbursing Officer (DDO)
The Council has received an Office Memorandum No. MOCT/ PrAO/ BBA/ GST/ 17-18/ 657-710 dated 19.06.2017 from the Department of Commerce & Ministry of Textiles informing about the salient features of the GST Act 2017 for the smooth functioning of the GST, which is as follows:
- Act- This Act may be called Central Goods & Services Act 2017 which extends to all over India except J&K w.e.f. 01.07.2017 (Section- I). It will replace all other taxes as under:-
- Central – CES, Custom Duty, Additional duty, Central Sales Tax etc.
- State- VAT, CST, Luxury, Entry, Entertainment, Sales Tax, Lottery etc.
- Registration- All DDOs/ Tax deductors are liable to be registered under Section 24 (VI) of GST Act 2017. DDO shall submit an online application Form GST Reg.- 07 on GST portal mandatory. The application form should be signed electronically using Class 2 DSC (Section 25).
- Returns- Registered person has to file return within 10th of next month of the deduction of month otherwise he will have to pay a hundred rupee per day for delayed period under Section 47.
- Rate of Tax- Under Section 51 r/ w Rule 5 of GST Act, DDO will deduct 1% from the payment mode of taxable Goods & Services or both where total value of such payments exceeds 2.50 lakhs. As under:-
- Supply with same state 1% as CGST & 1% as SGST both to be deducted.
- Supply involves from one state to another state 2% as IGST Tax be deducted in place of CGST & SGST.
- Penalty/ Interest/ Fee etc.- Under Section 122(1), if DDO fails to deduct Tax or deduct less tax or fails to pay the Government, the tax deducted amount, they are liable to be penalised for Rs. 10 thousand or equivalent of Tax deducted/ not deducted. Rate of interest 18%.
- Refunds- Refunds can be claimed under Section 54 of GST Bill.
Members may kindly make note of the same.