Dear Sir,
As per commercial Tax officer information they give us a statement regarding comparison of TDS/TCS data with relevant turnover in GSTR 1, that taxable turnover as found from TDS/TCS data Table 9 of GSTR 2a and relevant taxable turnover declare in GSTR 1 are different. So, they want reconciliation of undeclared turnover as per TDS/TCS data. Please advise.
Hey Utpal! Your query about reconciling TDS/TCS data with turnover declared in GSTR-1 is a common concern during GST audits and scrutiny. Here’s how you can approach it:
TDS/TCS under GST: Tax deducted or collected at source by buyers/sellers under GST is reflected in Form GSTR-2A (Table 9).
GSTR-1: Seller declares taxable supplies made during the period.
The tax officer compares TDS/TCS data from GSTR-2A with turnover declared in GSTR-1.
Differences arise if:
Some invoices on which TDS/TCS was deducted/collected are not declared in GSTR-1.
Timing differences or mismatches in invoice details.
Reporting errors or omission.
Download and analyze data:
Obtain TDS/TCS statement from GST portal or tax officer.
Extract related invoices from your sales records and GSTR-1 filings.
Match invoice-wise details:
Check if all invoices where TDS/TCS was deducted are reported in GSTR-1.
Look for missing invoices, mismatched invoice numbers, dates, or amounts.
Identify undeclared turnover:
Invoices appearing in TDS/TCS data but not in your GSTR-1 represent undeclared turnover.
Compile a list of such invoices.
Take corrective actions:
If the difference is genuine, file a revised GSTR-1 to declare missing invoices.
If invoices were wrongly reported or not your supply, collect evidence to prove the same.
Maintain clear records and correspondence.
Prepare reconciliation statement:
Show detailed reconciliation between TDS/TCS data and GSTR-1.
Explain reasons for differences and corrective steps taken.
Respond to tax officer:
Submit reconciliation with explanations.
Demonstrate good faith in compliance.
Regularly reconcile your sales data with TDS/TCS details to avoid future issues.
Ensure all TDS/TCS deducted by buyers is accounted for in your returns.
Communicate with deductors if discrepancies persist.
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