The Haryana Government on Friday issued guidelines for the role and responsibilities of government departments under Goods and Services Tax (GST).

The Government departments, local authorities and Government agencies would deduct tax at source of one per cent under State GST and one per cent under Central GST (CGST) from the payment made or credited to the supplier where the location of the supplier and place of supply are in the state of Haryana, said a spokesman of the Excise and Taxation Department.

Similarly, the tax at source would be deducted at the rate of two per cent under Integrated GST (IGST), where the supplies are received by the government departments, local authorities and government agencies in the course of inter-state supplies, said he.

 He said that TDS would be deducted from the payment made or credited to a supplier where the total value of such supply under a contract exceeds Rs 2.5 lakh. While computing value of contract, taxes under GST that is State GST, CGST and IGST, and Cess would be excluded. Thus, TDS would have to be deducted even if the individual supply is less than Rs 2.5 lakh, but contract value is more than Rs 2.5 lakh. The liability to deduct tax at source would also render the government departments liable for registration, said the spokesman.

All the government departments, local authorities and Government agencies would have to obtain registration under GST if they are required to deduct TDS, irrespective of threshold limit of Rs 20 lakh under GST.

He said for registration, the departments would have to apply online, in the form REG-07, on the National GST portal. The liability to register under GST is mandatory for the government departments, local authorities and government agencies in case they are liable for deduction of tax at source, he added.

The late fee of Rs 100  per day would  be imposed for the failure of the departments to issue TDS certificate in the form of GSTR-7A within the prescribed time subject to the maximum of Rs 5,000. Penalty of Rs 100 per day would be imposed for the failure to filereturns within the prescribed time subject to the maximum of Rs 5,000, he added.