TDS Credit under GST in "ITC credit claimed and due"

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Teerth (Querist)
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19 March 2020 Hello, case of my query goes as follow:
I have Government contracts where I have received TDS Credit under GST for every issue of Invoices to the Government Company.
I have duly filed TDS and TCS Credit return from time to time which were required to be filled till September 2019. Other than that I have not given effect of TDS anywhere else. Also not in GSTR 3B.
Now when I check my "Comparision of Liability and ITC Claimed Statement" for the year there is difference in my "ITC credit claimed and Due" Head. The difference exists of ITC Claimed as per GSTR 3B and GSTR -2A. The difference amount is the amount of TDS amount which is filled every month of TDS Credit received.
Also it is to be noted that difference of TDS amount is shown in SGST column. However there is no suchmn impact shown in CGST Column. Which SGST figures have difference of TDS credit amount whereas CGST column matches and no TDS credit figure is been taken in such column.
KINDLY GUIDE REGARDING THIS ISSUE AS IF I HAVE COMMITTED ANY MISTAKE OR THERE IS ONGOING ERROR UNDER GST PORTAL. PLEASE HELP??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 March 2020 No error in GST portal.
For availing GST TDS/TCS deducted by the deductors/collectors all the deductee need to file 'TDS/TCS credit received' tab on the portal. The deducted amount will appear in Cash Ledger which can be used for payment of balance amount of tax after setting off with the Input tax credit.

Teerth

Teerth (Querist)
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20 March 2020 Sir with due respect all the procedure that you stated has already been complied on my behalf. I guess my query is still unclear to reach your end.
What am I saying is that on Return Filing Dashboard for any month there is GSTR-1 GSTR-3B and also "Comparision of Liability and ITC Claimed Statement". Under the latter there is difference in of TDS amount showing in "ITC Credit claimed and Due" Head. Also this difference only in SGST Column and not in CGST Column.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 March 2020 You might have claimed ITC on TDS amount, reverse it.

Teerth

Teerth (Querist)
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20 March 2020 Sir, I have not claimed the TDS amount in ITC, whereas this difference is under GSTR-2A. GSTR-2A is higher compared to GSTR-3B and the difference amount is TDS amount which we have claimed in "TDS/TCS credit received". Also the questioning part to be looked at is that this difference is only in SGST and not in CGST.

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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27 July 2025 Thanks for the detailed context — this is a subtle and fairly common issue with GST TDS credit reconciliation.

Here’s a breakdown of what’s likely happening and how to address it:

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### Why is the difference showing only in **SGST** and not in **CGST**?

* Under GST, **TDS deducted by government departments is reflected in the electronic cash ledger** of the deductee.
* This **TDS credit is usually credited only to the State GST (SGST) component** of the cash ledger — not to the Central GST (CGST).
* Hence, when you compare your ITC figures in **GSTR-2A (which shows all invoices including TDS details) and your GSTR-3B (which reflects your claimed ITC and cash ledger utilization)**, the TDS amount appears only on the SGST side.
* This causes the mismatch you are seeing: **GSTR-2A includes TDS credit under SGST, but your GSTR-3B ITC claim does not reflect it as ITC (because it’s actually shown as cash ledger credit).**

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### Important points:

* The **TDS amount deducted under GST is not Input Tax Credit (ITC)**. It is an amount deposited by the deductor on your behalf, which is **credited to your cash ledger**.
* This **cash ledger balance (including TDS credit) can be used to pay your GST liability** after offsetting available ITC.
* Therefore, **you should not claim the TDS amount as ITC in your GSTR-3B**.
* The mismatch occurs because the system shows TDS credit in GSTR-2A (which is invoice-based) but in reality, this amount is available as cash ledger credit — a different ledger than ITC ledger.

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### What to do?

1. **Do not claim the TDS amount as ITC in GSTR-3B.**
This is correct as per GST law.

2. **Use the TDS credit reflected in the cash ledger for payment of your GST liability** (this can be verified in your electronic cash ledger on the GST portal).

3. If you want to reconcile or explain this difference to your auditors or GST officers, you can:

* Show that the difference is only due to the TDS amount credited in the cash ledger (SGST side).
* Explain that the TDS amount is **not part of your ITC claim**, but a **cash ledger credit**.
* Maintain reconciliation statements clearly showing this split.

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### Summary:

| Ledger/Return | TDS Amount Treatment | CGST Impact | SGST Impact |
| ------------------- | --------------------------------------- | ----------------------- | ----------------------- |
| GSTR-2A | Shows TDS as part of invoice data | No (only SGST impacted) | Yes (TDS credited here) |
| GSTR-3B (ITC Claim) | Do **not** include TDS as ITC | No impact | No impact |
| Cash Ledger | TDS credited here, used for GST payment | No impact | Yes, credited here |

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If you want, I can help you draft a reconciliation note or summary for your records or audit. Would you like me to prepare that?

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