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Tds credit under gst

Hemchand Kohli (Accountant) (889 Points)

31 August 2019

Government department has deducted TDS in July 2019 and We have accepted & file TDS return in GST. Can we adjust July 2019 TDS in the payment of June 2019. As per GSTR3B challan creation it is taking effect of July 2019 also since after accepting and filing TDS it shows under Electronic Cash Ledger.

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6 Replies

Uttam (employee) (814 Points)
Replied 31 August 2019

such amount can be adjusted prospectively and not retrospectively.

You can take effect of adjust only after filing TDS return. So you cannoy adjust against June 2019 payment liability.

1 Like

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 01 September 2019

Yes ...I think you can..... as it get reflected in Your Cash Ledger , Even though it pertains to July but as you have filed & accepted the same before you file your June 3B , (as you are paying late fee for June if it is file after due date)

Note : It's in cash ledger & taxpayer get balance in cash ledger only when make a payment to cash ledger .

Now lets understand it with Example , suppose I did not file my may GStR 3B , & tax liability arising therein , now if I go for filing may 3B in July , I have to deposit cash in my cash ledger in July only & same can be setoff against May 3b liability

Hemchand Kohli (Accountant) (889 Points)
Replied 02 September 2019

Thanking you

CS Advocate Abhishek Goyal (M Com FCS LLB M-AIMA ) (13531 Points)
Replied 02 September 2019

In my opinion it cannot be done since this will encourage the practice to delay the filing of 3B and set off of liability arising in that particular month by utilizing the credit of TDS in cash ledger. Since TDS was deducted in July and your liability pertains to June even though you have filed TDS return and amount of TDS has been reflected in your cash ledger you should not set off liability of June with that balance.

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 02 September 2019

@ CS ABHISHEK GOYAL

EVEN THOUGH MY LIABILITIES PERTAINS TO JUNE BUT SAME IS BEING SETOFF IN JULY THEN WHY CAN'T I SET OFF THE SAME .

SIR ITS IN MY CASH LEDGER BALANCE & HARDLY MATTERS WHETHER ITS OF JUNE OR JULY .

Akshay Jain (Tax Consultant) (1024 Points)
Replied 02 September 2019

the balance in cash ledger is there own amount which was deducted at the time of transaction so they can use this credit once they get in there ledger