GSTN issued Advisory for Reporting TDS Deducted by Scrap Dealers in October 2024

The Goods and Services Tax Network (GSTN) has issued an advisory for reporting TDS deducted by Scrap Dealers in October 2024.

According to Notification No. 25/2024-Central Tax, effective 10.10.2024, any registered person receiving supplies of metal scrap classified under Chapters 72 to 81 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) from another registered person is required to deduct TDS under Section 51 of the CGST Act, 2017.

In this regard, many tickets have been received indicating that taxpayers are unable to disclose TDS deducted in October 2024 since they are unable to file a return for the month of October 2024. This issue arose because, despite applying for GST registration in October 2024 in accordance with the aforesaid notification, their GST registrations were only accepted in November 2024.

Therefore, the month October 2024 is not visible in the return option for these taxpayers. This is consistent with the current GSTN system design, which does not allow taxpayers to file returns for tax periods prior to the registration month.

However, to resolve the issue, taxpayers who were granted registration in November 2024 but deducted TDS in October 2024 are recommended to disclose the whole amount of TDS deducted from 10.10.2024 to 30.11.2024 in the GSTR-7 return to be filed for the month of November 2024.

For any further assistance, taxpayers may contact the GSTN helpdesk.