How to show GST TDS/TCS in Accounts

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This discussion clarifies how to account for Goods and Services Tax (GST) Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) in your accounting records. It explains that TDS/TCS can be adjusted against tax liabilities and is akin to a cash ledger. The recommended approach is to show it under 'loans and advances - deposits with Govt.', debiting TDS/TCS receivable and crediting the customer. When credit is taken in the GST cash ledger, you then credit TDS/TCS receivable and debit the GST Cash Ledger deposit account.

ARITRA CHAKRABORTY

ARITRA CHAKRABORTY (Querist)
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31 October 2020 If someone deducts tax at source or collects tax at source from GST, How shall I account for the same in the Books of Accounts? plz guide me.

Lekhraj sood

Lekhraj sood (Expert)
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31 October 2020 You can debit TDS/TCS receivable and credit customer. When you take credit in Cash ledger under GST,the you can credit TDS/TCS receivable and debit GST Cash Ledger deposit account.

ARITRA CHAKRABORTY

ARITRA CHAKRABORTY (Querist)
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31 October 2020 ok and finally Shall I adjust the debited "GST Cash Ledger deposit account" with Cash/Bank Account ?

Lekhraj sood

Lekhraj sood (Expert)
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01 November 2020 No, It is to be shown under loans and advances - deposits with Govt.

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ARITRA CHAKRABORTY

ARITRA CHAKRABORTY (Querist)
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01 November 2020 thank you so much