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GST TDS Amount Calculation

Topic: TDS and TCSChapter: Chapter 3
TDS Amount=Value of Supply×TDS Rate\text{TDS Amount} = \text{Value of Supply} \times \text{TDS Rate}
The TDS amount is calculated on the taxable value of the supply (excluding GST components). The applicable rate is generally 2%2\% (comprising 1%1\% CGST and 1%1\% SGST, or 2%2\% IGST).

GST TCS Amount Calculation

Topic: TDS and TCSChapter: Chapter 3
TCS Amount=Net Value of Taxable Supplies×TCS Rate\text{TCS Amount} = \text{Net Value of Taxable Supplies} \times \text{TCS Rate}
The TCS amount is calculated on the net value of taxable supplies made through an e-commerce operator. The applicable rate is generally 1%1\% (comprising 0.5%0.5\% CGST and 0.5%0.5\% SGST, or 1%1\% IGST).

Net Value for TCS

Topic: TDS and TCSChapter: Chapter 3
Net Value=∑(Gross Value of Supplies)−∑(Returns/Credit Notes)\text{Net Value} = \sum (\text{Gross Value of Supplies}) - \sum (\text{Returns/Credit Notes})
The TCS is not calculated on the gross turnover but on the net value of taxable supplies after adjusting for returns or credit notes issued during the period.

GST TDS Calculation

Topic: TDS and TCSChapter: Chapter 3
GST TDS Amount=Value of Supply×TDS Rate\text{GST TDS Amount} = \text{Value of Supply} \times \text{TDS Rate}
Calculates the amount of Tax Deducted at Source (TDS) under GST. The 'Value of Supply' refers to the taxable value of supply on which TDS is to be deducted. The 'TDS Rate' is typically 1% each for CGST and SGST/UTGST, or 2% for IGST, as per Section 51 of the CGST Act, 2017, applicable when the value of supply under a contract exceeds INR 2.5 Lakhs.

GST TCS Calculation

Topic: TDS and TCSChapter: Chapter 3
GST TCS Amount=Net Value of Taxable Supplies×TCS Rate\text{GST TCS Amount} = \text{Net Value of Taxable Supplies} \times \text{TCS Rate}
Calculates the amount of Tax Collected at Source (TCS) by an e-commerce operator under GST. The 'Net Value of Taxable Supplies' is the aggregate value of taxable supplies made through the operator by all suppliers, reduced by returns. The 'TCS Rate' is typically 0.5% each for CGST and SGST/UTGST, or 1% for IGST, as per Section 52 of the CGST Act, 2017.

Value of Supply for Renting of Immovable Property (Time of Supply - Services)

Topic: Income from House PropertyChapter: Chapter 3
Time of Supply=min⁡(Date of issue of invoice,Date of receipt of payment)\text{Time of Supply} = \min(\text{Date of issue of invoice}, \text{Date of receipt of payment})
Determines when the liability to pay GST arises for renting services. It is the earliest of the date of invoice or the date of payment receipt.

Value of Supply (Transaction Value)

Topic: Income from House PropertyChapter: Chapter 3
V=Price actually paid or payable+Taxes (other than GST)+Incidental expensesV = \text{Price actually paid or payable} + \text{Taxes (other than GST)} + \text{Incidental expenses}
The value on which GST is calculated is the transaction value, which includes all non-GST taxes and expenses incurred by the supplier for the lessee.

Reverse Charge Mechanism (RCM) - Renting to Government/Local Authority

Topic: Income from House PropertyChapter: Chapter 3
Liability=Recipient (Govt/Local Authority) pays GST\text{Liability} = \text{Recipient (Govt/Local Authority)} \text{ pays GST}
If a registered person rents immovable property to a Government entity or a Local Authority, the GST is payable by the recipient under RCM.

Value of Supply (Transaction Value)

Topic: Capital GainsChapter: Chapter 3
V=TC+Taxes+Incidental_Expenses+∑(Adjustments)V = TC + Taxes + Incidental\_Expenses + \sum(Adjustments)
The value on which GST is calculated is the Transaction Value (TC), which includes all taxes (other than GST), incidental expenses charged by the supplier, and any adjustments made in the agreement before or at the time of supply.

Time of Supply (Goods - Invoice Basis)

Topic: Capital GainsChapter: Chapter 3
ToS=min⁡(Date of Issue of Invoice,Last date on which invoice is required to be issued)ToS = \min(\text{Date of Issue of Invoice}, \text{Last date on which invoice is required to be issued})
For goods, the time of supply is generally the date of issue of the invoice or the last date the invoice should have been issued under Section 31.

Time of Supply (Goods - Receipt of Advance)

Topic: Capital GainsChapter: Chapter 3
ToS=Date of Receipt of AdvanceToS = \text{Date of Receipt of Advance}
Note: Per recent amendments in GST law, GST is generally not payable on advances received for the supply of goods, but it remains a theoretical concept for certain specific scenarios or services.

Composite Supply Value

Topic: Concept and SupplyChapter: Chapter 3
Value of Supply=Principal Supply Value\text{Value of Supply} = \text{Principal Supply Value}
In a composite supply, where two or more goods or services are naturally bundled, the tax rate applicable to the principal supply is applied to the entire bundle.

Mixed Supply Value

Topic: Concept and SupplyChapter: Chapter 3
Value of Supply=Highest Tax Rate in the Bundle\text{Value of Supply} = \text{Highest Tax Rate in the Bundle}
In a mixed supply, where two or more individual supplies are made together for a single price but are not naturally bundled, the entire supply is taxed at the rate of the item that attracts the highest rate of tax.

Transaction Value (Section 15)

Topic: Concept and SupplyChapter: Chapter 3
Value of Supply=Price Paid or Payable+Taxes (other than GST)+Incidental Expenses−Discounts\text{Value of Supply} = \text{Price Paid or Payable} + \text{Taxes (other than GST)} + \text{Incidental Expenses} - \text{Discounts}
The value of supply is the transaction value which is the price actually paid or payable, adjusted for specific inclusions (like subsidies, taxes other than GST, and incidental expenses) and exclusions (discounts given before or at the time of supply).

Treatment of Discounts

Topic: Concept and SupplyChapter: Chapter 3
Net Taxable Value=Gross Value−Post-supply Discount (if conditions met)\text{Net Taxable Value} = \text{Gross Value} - \text{Post-supply Discount (if conditions met)}
Discounts given before or at the time of supply are deducted from the value. Post-supply discounts are only deductible if they were established in an agreement prior to the supply and are specifically linked to the invoice.
Chapter 3 Formulas — CA Intermediate | Kartavvya