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ITC on tds deducted in gst

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JASKARAN SINGH

435 Points Posted on 27 August 2020

can we claim tds deducted .....its possible to claim tds which is deducted by deductor......

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Quick Summary

Yes, you can claim TDS deducted under GST. If a supplier's total supply value exceeds £250,000 under a contract, the deductor must deduct 2% TDS. After the deductor pays the tax and files their return, you (the deductee) will receive Form GSTR-7A. You can then claim this deducted amount as credit in your electronic cash ledger via the 'TDS/TCS credit received' tab on the GST portal, which can be used to pay other taxes.

Sagar Patel

Tax and Business Consultant

11616 Points Posted on 27 August 2020

Yes, TDS is to be deducted at the rate of 2 % on payments made to the supplier of taxable goods and/or services, where the total value of such supply, under an individual contract, exceeds two lakh fifty thousand rupees.

TDS shall be paid within 10 days from the end of the month in which tax is deducted by Deductor to Government.

After Payment of tax by Deductor and filing return by Deductor, GST portal will automatically make GSTR-7A available to the deductee (i.e you) on the basis of GSTR-7 filed.

The deductee(i.e you) can claim credit in your electronic cash ledger of this tax deducted and use it for payments of other taxes.

Thus, 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.