Comparison of TDS/TCS data with relevant turnover in GSTR 1

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:

Understanding the Issue

• 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.

How to Reconcile & Address Differences

1. 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.

2. 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.

3. Identify undeclared turnover:

   • Invoices appearing in TDS/TCS data but not in your GSTR-1 represent undeclared turnover.

   • Compile a list of such invoices.

4. 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.

5. Prepare reconciliation statement:

   • Show detailed reconciliation between TDS/TCS data and GSTR-1.

   • Explain reasons for differences and corrective steps taken.

6. Respond to tax officer:

   • Submit reconciliation with explanations.

   • Demonstrate good faith in compliance.

Tips

• 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.