File TDS/TCS credit received on GST portal by logging in, going to Returns, selecting financial year/month, choosing TDS/TCS Credit Received, filling form, uploading supporting docs, previewing details, submitting and paying, if required.
The Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. The tax is collected at every stage of the supply chain, from the manufacturer to the end consumer. The TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) provisions under GST require taxpayers to deduct or collect a specified percentage of tax while making payments to their suppliers. The collected tax can then be claimed as a credit on the GST portal. In this blog, we will discuss the steps to file TDS and TCS credit received on the GST portal.
What is TDS?
TDS stands for Tax Deducted at Source. It is a system of collecting tax on behalf of the government by the person responsible for making payments such as salary, commission, professional fees, interest, rent, etc. Under the TDS system, the person making the payment is required to deduct a certain percentage of tax from the payment and deposit it with the government. The amount of TDS deducted is then credited to the taxpayer’s account and is considered as a pre-payment of tax. The taxpayer can then claim the TDS credit while filing their income tax return and reduce their tax liability. The TDS system helps in ensuring regular and timely collection of taxes and reduces the burden of tax collection on the government.
What is TCS?
TCS stands for Tax Collected at Source. It is a system of collecting tax by the seller of goods on behalf of the government from the buyer of goods. The TCS provisions under the Goods and Services Tax (GST) require the seller to collect a specified percentage of tax while making a sale to the buyer. The collected tax is then deposited with the government. The TCS system helps in ensuring regular and timely collection of taxes and reduces the burden of tax collection on the government. The collected TCS can be claimed as a credit by the seller on the GST portal. The TCS provisions apply to specific goods such as alcohol, scrap, and other notified goods, and the rate of TCS is specified by the government. The TCS provisions ensure that the government receives its due share of tax from transactions involving specified goods.
Process to File TDS and TCS Credit Received on GST Portal
Here are the steps involved in the process to apply TDS online and TCS credit received on GST Portal,
Step 1: Register on the GST Portal
The first step towards filing TDS and TCS credit received on the GST portal is to register on the portal. To do so, follow the below steps:
- Visit the official GST portal at https://www.gst.gov.in/.
- Click on the ‘REGISTER NOW’ button.
- Select ‘Taxpayer (Normal)’ and fill in the required details such as name, PAN number, email ID, mobile number, and others.
- Submit the form and an OTP will be sent to your registered mobile number and email ID.
- Enter the OTP and complete the registration process.
Step 2: Log in to the GST Portal
Once you have registered on the GST portal, you can log in to your account using your user ID and password.
Step 3: File the TDS and TCS Credit Statement
The next step is to file its credit statement on the GST portal. To do so, follow the below steps:
- Go to the ‘Services’ section and select ‘Returns’.
- Click on the ‘TDS/TCS Credit Statement’ tab.
- Fill in the required details such as financial year, quarter, TDS/TCS certificate number, and others.
- Upload the TDS/TCS certificate in PDF format.
- Verify and submit the details.
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Step 4: Claim TDS and TCS Credit
Once the its credit statement has been filed, you can claim the credit on the GST portal. To do so, follow the below steps:
- Go to the ‘Services’ section and select ‘Returns’.
- Click on the ‘Input Tax Credit’ tab.
- Select the ‘TDS/TCS Credit’ option.
- Fill in the required details such as the TDS/TCS certificate number, credit amount, and others.
- Verify and submit the details.
Step 5: View the TDS and TCS Credit Status
Once the Online TDS and TCS credit has been claimed, you can view the status of the credit on the GST portal. To do so, follow the below steps:
- Go to the ‘Services’ section and select ‘Returns’.
- Click on the ‘Credit/Debit Statement’ tab.
- Select the ‘TDS/TCS Credit’ option.
- You can view the credit received and the status of the credit (approved/rejected).
Purpose of form ‘TDS and TCS credit received’ & who must file
The ‘TDS and TCS Credit Received’ form serves the purpose of allowing all taxpayers from whom tax has been deducted or collected at the source by registered TDS deductors or TCS collectors to acknowledge and process the TDS/TCS credits. This form is essential for both deductors/collectors and deductees in the GST (Goods and Services Tax) system.
For TDS deductors, the process involves filing GSTR-7, while TCS collectors need to file GSTR-8 by the 10th of the succeeding month. On the deductee’s side, accepting or rejecting the TDS/TCS credit on the GST portal is imperative. The filing of the ‘TDS and TCS Credit Received’ tab is a necessary step for availing GST TDS/TCS deducted by deductors/collectors. The deducted amount reflects in the Cash Ledger, providing a means for payment of the balance tax amount after offsetting with Input Tax Credit.
Due date for filing ‘TDS and TCS credit received’ on GST portal
There is no specific due date or late filing fees associated with filing TDS/TCS credit received. However, it is advisable to complete this process before the following deadlines, especially if tax payment is due:
- 20th of the following month before filing GSTR-3B, or
- 18th of the month following every quarter for those filing GSTR-4.
The filing can occur once a month and is exclusively done through the online platform. Notably, ‘TDS and TCS Credit Received’ Form can be submitted before filing Form GSTR-1/GSTR-3B.
Pre-read to declare details under ‘TDS and TCS credit received’
The TDS/TCS credit received tab automatically populates details from GSTR-7 or GSTR-8, filed by the deductor/collector. For the deductee, it is crucial to meticulously cross-check these details with their records or raised bills. Subsequently, the deductee must accept or reject the records. Once the ‘TDS/TCS Credit Received’ is filed on the GST portal, actions cannot be undone. It is imperative to take action on all auto-populated records in all tables before filing the ‘TDS and TCS Credit Received’ form. This ensures accurate and transparent processing of TDS/TCS credits within the GST framework.
FAQ’s
What is the form for TCS under GST return?
The form for TCS under GST return is GSTR-7 for TDS deductors and GSTR-8 for TCS collectors. These forms are used to file the TDS and TCS credit received on the GST porta.
What is the rule of TDS and TCS in GST?
The rule of TDS (Tax Deducted at Source) and TCS (Tax Collection at Source) in GST involves deducting or collecting tax at the source by registered TDS deductors or TCS collectors. The 'TDS and TCS Credit Received' form facilitates taxpayers in acknowledging and utilizing these credits.
Is TDS and TCS applicable on same transaction?
Yes, TDS and TCS can be applicable on the same transaction. TDS is deducted by the payer, while TCS is collected by the seller. Both transactions aim to regulate tax compliance.
Who will deduct TCS in GST?
TCS (Tax Collection at Source) in GST is typically deducted by e-commerce operators. They collect tax at a specified rate from the payment received by sellers on their platform.
How do I charge TCS in GST invoice?
To charge TCS in a GST invoice, the seller (supplier) must clearly mention the TCS amount separately in the invoice. The buyer pays this additional amount, which is then collected and remitted by the e-commerce operator.
Should TCS be collected on GST amount?
Yes, TCS should be collected on the GST amount. It is calculated on the net amount, which includes the GST.
Who is liable for TDS from GST?
The entity making a payment for goods or services is liable for deducting TDS from GST. This entity is referred to as the TDS deductor, and the deducted amount is remitted to the government.
Conclusion
Filing TDS and TCS credit received on the GST portal is a straightforward process. By following the steps outlined above, taxpayers can claim the credit and ensure and can apply TDS online. This process helps users to learn how to file TDS and TCS credit received on the GST portal. However, with the support of our experts, you will be able to complete the process really quick and hassle-free.
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