Guide to Submitting TDS and TCS Credit on the GST Portal

The Goods and Services Tax (GST) portal provides a feature for taxpayers to manage Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) credits. This function is accessible after logging in and is intended for individuals involved in specific e-commerce sales or works contracts with government bodies. The system, akin to GSTR-2A, automatically populates data from GSTR-7 and GSTR-8. Taxpayers can select the 'TDS and TCS credit received' option on the returns dashboard to either claim or decline the TDS and TCS amounts withheld by government deductors or e-commerce operators.

Purpose and Filers of the 'TDS and TCS Credit Received' Form

The 'TDS/TCS credit received' section on the GST portal is designed for all taxpayers whose tax has been withheld or collected by registered TDS deductors or TCS collectors. These deductors or collectors are mandated to file GSTR-7 or GSTR-8 by the 10th of the subsequent month. Recipients of these deductions must then use the 'TDS/TCS Credit Received' tab on the GST portal to either accept or reject the credit. Filing this form is essential for taxpayers to utilize the GST TDS/TCS amounts. The accepted amount is then credited to the Electronic Cash Ledger, which can be used to settle outstanding tax liabilities after adjusting for Input Tax Credit.

Due Date for Submitting 'TDS and TCS Credit Received' on GST Portal

There are no specific due dates or late fees for submitting the TDS/TCS credit received statement. However, it is advisable to complete the filing before the deadlines for tax payments. These include the 20th of the subsequent month, prior to filing GSTR-3B, or the 18th of the month following each quarter for taxpayers submitting GSTR-4. This statement can be filed monthly, exclusively through the online portal, and should ideally be submitted before filing either GSTR-1 or GSTR-3B.

Important Considerations Before Declaring Details Under 'TDS and TCS Credit Received'

The 'TDS/TCS credit received' section automatically displays information from GSTR-7 or GSTR-8, submitted by the respective deductors or collectors. It is crucial for the recipient taxpayer to verify these details against their own records and invoices before accepting or rejecting them. Once the 'TDS/TCS Credit received' form is submitted on the GST portal, the chosen action (accept or reject) cannot be reversed. Furthermore, the form cannot be filed unless action has been taken on every auto-populated record across all relevant tables.

Steps to Submit 'TDS and TCS Credit Received' on GST Portal

To file the 'TDS and TCS credit received' form on the GST portal, follow these steps:

1. Access the official GST Portal and log in.
2. Navigate to 'Services', then 'Returns', and select 'TDS and TCS credit received'. The 'File Returns' dashboard will then appear.
3. Choose the appropriate 'Financial Year' and 'Return Filing Period' that corresponds to your GSTR-3B filing. Click 'SEARCH'.
4. On the 'TDS and TCS credit received' tile, click the 'Prepare Online' button to begin preparing and filing the statement.

Automatic Drafted TDS/TCS Details Tables

The 'AUTO DRAFTED TDS/TCS DETAILS' page presents four distinct tables for managing credits:

• TDS Credit Received: This section allows taxpayers to accept or reject TDS credit information automatically populated from GSTR-7 submissions by various deductors.
• Amendments to TDS Credit Received: Here, taxpayers can accept or reject subsequent changes made by deductors to TDS credit details that were previously accepted.
• TCS Credit Received: This table is used to accept or reject TCS credit data derived from GSTR-8 filings by collectors.
• Amendments to TCS Credit Received: This section facilitates the acceptance or rejection of any later modifications made by collectors to TCS credit details that were previously accepted.

The process for accepting or rejecting records remains consistent across all four tables. Taxpayers should click on the relevant tile to initiate action. For example, selecting the 'TDS Credit Received' tile. To claim the allocated TCS or TDS credit, taxpayers must take action on each record. Select the desired records using the checkboxes next to the Deductor's or Collector's GSTIN, then click either 'ACCEPT' or 'REJECT'. An action can be undone (e.g., changing from Accept to Reject) only before the form is officially filed. Once submitted, the action becomes final and cannot be revised.

Before final submission, taxpayers should preview and verify the draft form. After entering all necessary details, click the 'PREVIEW DRAFT TDS AND TCS CREDIT RECEIVED' button. It is essential to carefully review the PDF summary for data accuracy, as no changes can be made post-filing. To proceed with the submission, click the 'PROCEED TO FILE' button. The request may take some time to process, with a confirmation message appearing on the page. Finally, submit the declaration by selecting an Authorized Signatory from the drop-down menu. Click the enabled 'FILE TDS TCS CREDIT RECEIVED' button and confirm with 'Yes' on the warning message. The form can be submitted using either a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC). Upon successful submission, the status will change to 'Filed'.

For a deeper insight into TDS or TCS under GST, consider exploring articles on: all aspects of TDS under GST, obligations for TCS collection under GST, guidance for e-commerce operators filing GSTR-8, and the procedures for government contractors filing GSTR-7.

Frequently Asked Questions

How do I claim my TCS refund from the GST portal?

Taxpayers can avail of the amount paid as TDS/TCS by filing the ‘TDS/TCS credit received’ statement on the GST portal. The deducted amount will appear in the Cash Ledger which can be used for payment of the balance amount of tax post set off with the input tax credit available. Any excess amount in the Cash Ledger after paying off liabilities can be claimed as a refund, as detailed here.

How to take credit of TCS in GST?

Taxpayers can claim a credit of the TCS paid under GST. They will need to file the ‘TDS/TCS credit received’ statement on the GST portal. The deducted amount will appear in the Electronic Cash Ledger which can be used as a credit for payment of the balance amount of tax after set off with the input tax credit available.

What are the rules for TDS and TCS under GST?

You can refer to our detailed articles to understand more about Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) under GST.

How do I claim my input tax credit back from GST?

You can claim input tax credit at the time of filing your GSTR-3B return.

Who is liable to deduct TDS under GST?

The following persons are liable to deduct TDS under GST-

• A department or an establishment of the Central Government or a state government,
• A local authority,
• A government agency,
• An authority/board/body set up by Parliament, a state legislature, or by a government, with 51% equity (control) owned by the government,
• A society established by the Central or any State Government or a local authority and the society is registered under the Societies Registration Act, 1860,
• Public sector undertakings,
• Such persons or categories of persons as may be notified by the government.

Who is liable to collect TCS under GST?

Operators who own, operate and manage e-commerce platforms are liable to collect tax at source (TCS). TCS applies only if the operators collect the consideration from the customers on behalf of vendors or suppliers. In other words, when the e-commerce operators pay the consideration collected to the vendors, they have to deduct an amount as TCS and pay only the net amount. There are a few exceptions to the TCS provisions for the services provided by an e-commerce platform:

• Hotel accommodation/clubs (unregistered suppliers)
• Transportation of passengers – radio taxi, motor cab or motorcycle
• Housekeeping services like plumbing, carpentry etc. (unregistered suppliers)

What is the form for TCS under GST return?

GSTR-8 is a return to be filed by the e-commerce operators who are required to deduct TCS (Tax collected at source) under GST.

Is TDS and TCS applicable on the same transaction?

If a buyer deducts TDS based on the provisions in the Income Tax Act on a particular transaction, then, in this case, TCS is not applicable.

What is the source to file the TDS or TCS credit received?

A taxpayer can visit the GST portal and click on the 'TDS and TCS credit received' tile after logging in and going to ‘Services’ > ‘Returns’.

What are the consequences if the TDS or TCS Credit received is rejected by an assessee?

Once certain entries have been rejected by a taxpayer, the status on the summary page will change to ‘Rejected’. The dashboard page as well will reflect the total rejected count, amount, and taxable value. Further, the details will flow into the Form GSTR-7/GSTR-8 of the respective TDS deductor/TCS collector as amendments while filing the return of the next tax period.

Is it possible to change the accepted records?

A user can undo the action (Accept to Reject or Reject to Accept). But this can only be done until they file the form. Once the form is filed, the action cannot be revised.