FAQs on claiming TDS/TCS credit in GST!

Navigating the Goods and Services Tax (GST) system can be complex, especially when it comes to claiming Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) credits. The GST portal has introduced a streamlined process for taxpayers to view, accept, or reject auto-populated TDS/TCS entries through the “TDS and TCS Credit Received” section. Whether you’re a regular or composition taxpayer, understanding how to take action on these credits is crucial for accurate tax reporting and timely cash ledger updates. This blog answers the most frequently asked questions to help you claim your TDS/TCS credits smoothly and efficiently.

FAQs > About TDS and TCS Credit Received Statement:

1. What is the "TDS and TCS Credit Received" tile?

“TDS and TCS Credit Received” tile has been provided at the Returns Dashboard, to all the suppliers (normal as well as composition taxpayers), from whom some amount of tax has been deducted or collected at source, by the persons registered as Tax Deductors/ E-commerce operators respectively. This TDS and TCS Received tile will be used to take action auto-populated details of Tax Deducted or Collected at Source, as indicated in the return filed in Form GSTR-7/ 8 of said Tax Deductor/ Operator filed for the said tax period.

2. TDS and TCS Credit Received comprise which tables?

TDS/ TCS Credit Received details and amendments to TDS/ TCS Credit Received details, given in Form GSTR-7/8 by a person who is liable to deduct TDS/ TCS are auto-populated for taking action therein.

TDS and TCS Credit Received comprises of following tables:

1. TDS Credit Received: To accept/ reject TDS Credit Received details

2. Amendments of TDS Credit Received: To accept/ reject amendments to TDS Credit Received details

3. TCS Credit Received: To accept/ reject TCS Credit Received details

4. Amendments of TCS Credit Received: To accept/ reject amendments to TCS Credit Received details

Filing TDS and TCS Credit Received Statement

3. Who needs to file TDS and TCS Credit Received?

TDS and TCS Credit Received is to be filed by the taxpayers whose tax is deducted by the recipient or collected by the recipient.

4. Is it mandatory to file TDS and TCS Credit Received statements for every tax period?

Filing of TDS and TCS Credit Received statements for every tax period is not mandatory. It is required to be filed when any amount is deducted or collected by the recipient.

5. From where can I as a taxpayer file TDS and TCS Credit Received?

TDS and TCS Credit Received can be accessed on the GST Portal, post login in the Returns Dashboard by the taxpayer. 

The path is Services > Returns > TDS and TCS credit received.

Taking Action on TDS and TCS Credit Received Amount

6. What options are available in the Action field?

The following two options are available in the Action field.

Accept

Reject

7. What will happen if I reject the TDS/ TCS Credit Received amount?

Rejected details will flow to Form GSTR-7/8 of the respective Deductor/ e-commerce operator for amendments, as the case may be, after the filing of the “TDS/ TCS Credit Received” statement by the supplier, from whom tax is deducted or collected at source. Deductor/ e-commerce operator will take action or make amendments on those rejected details.

8. What will happen if I accept the TDS/ TCS Credit Received amount?

Accepted TDS/ TCS credit amount will be credited to your Electronic Cash Ledger only after filing of “TDS/ TCS Credit Received” statement. You can use that cash for payment of any tax liability or take a refund.

9. Can I change the accepted records?

Accepted records which have been filed in the statement cannot be changed.

Accepted records which have been included in the filed statement cannot be changed.

10. What will happen if the deductee files the TDS/TDS Credit received statement without taking any action on the TDS/TCS details auto-populated in the TDS/TCS Credit Received Tile?

The TDS/TCS details, on which no action is taken by the Deductee /person from whom the tax is collected, using the TDS/TCS Credit received tile, and the statement for such tax period is filed. then such TDS/TCS details will be auto-populated in the TDS/TCS Credit Received Tile for the next open tax period for taking the required action.

11. When Summary tile will be updated?

The tile summary will be updated after taking action on the auto-populated record inside the data of each tile. 

12. When Rejected TDS or TCS record will flow to the Deductor/E-com operator (Collector)?

After the successful filing of the TDS and TCS credit Received statement by the Deductee/ person from whom the tax is collected at source, rejected records will flow to counterparty GSTR-7 or Form GSTR-8, for the subsequent tax period and will be available in Table 4 of his return for taking suitable action.

The deductor/ Operator can then make amendments to the records.

13. Can I file TDS and TCS Credit Received statements without taking action on all auto-populated records?

No. You can’t file the TDS and TCS Credit received statement without taking action on all auto-populated records in all tables.

14. TDS or TCS record has been amended by the Deductor or E-com operator (Collector) in Form GSTR-7/8. Where can I see such an amended record in the TDS and TCS Credit received statement?

All amended records will be available in amendment tables of TDS and TCS Credit-received statements.

15. Can I revert (undo) the Action (Accept to Reject or Reject or Accept)?

Yes. You can change the action till you actually file the statement. You cannot change the action after filing of TDS and TCS Credit Received statement.

16. Can I (from whom the tax is collected or deducted at source), edit the TDS or TCS records, auto-populated in my TDS and TCS Credit Received statement?

No. You can’t edit the auto-populated records. If auto-populated records are not correct, then you can only reject the record.

17. Can I add any new record in any table in the TDS and TCS Credit Received statement?

No. You can’t add a new record in any table in TDS and TCS Credit Received statement.

18. Can I take any action, if the deductor/e-commerce operator has amended any record before taking action by me?

If the deductor/e-commerce operator has amended any record before taking action by you, the same will be disabled for taking any action. You need to take action to accept/reject the latest amended record auto-populated in the subsequent tax period.

Previewing, Signing, and Filing Statement 

19. when do I need to file the TDS and TCS Credit Received statement and is there any late fee for late filing?

There is no due date or late fee for filing of TDS and TCS Credit Received. Cash ledger will be credited by the amount equal to the Tax Deducted/Collected, only after filing of the statement.

20. Can I file TDS and TCS Credit Received multiple times during a month?

You can file TDS and TCS Credit Received once only for a tax period. The table is tax period-specific.

21. Is there any Offline Tool for filing TDS and TCS Credit Received?

No. TDS and TCS Credit Received can be filed through online mode ONLY.

22. Can I preview TDS and TCS Credit Received before filing?

Yes, you can view/download the preview of TDS and TCS Credit Received by clicking on ‘PREVIEW DRAFT TDS AND TCS CREDIT RECEIVED" before filing on the GST Portal.

23. Do I need to file the TDS and TCS credit Received statement before filing of Form GSTR-1/3B?

You may file the TDS and TCS credit Received statement before filing of Form GSTR-1/3B.

24. When ‘File TDS TCS credit received’ button will be enabled?

The taxpayer needs to click on the ‘Proceed to file’ button first. With the click of this button, the GST Portal will do the necessary validations, and the “File TDS TCS credit received’ button will enable such validations.

25. What are the modes of signing TDS and TCS Credit Received?

You can file TDS and TCS Credit Received using DSC or EVC. 

(a) Digital Signature Certificate (DSC)

Digital Signature Certificates (DSC) are the digital equivalent (that is electronic format) of physical or paper certificates. A digital certificate can be presented electronically to prove one’s identity, to access information or services on the Internet, or to sign certain documents digitally. In India, DSC is issued by authorized Certifying Authorities.

The GST Portal accepts only PAN-based Class II and III DSC. 

(b) Electronic Verification Code (EVC)

The Electronic Verification Code (EVC) authenticates the identity of the user at the GST Portal by generating an OTP. The OTP is sent to the mobile phone number of the registered mobile phone of the Authorized Signatory filled in part A of the Registration Application.

Post Filing of TDS and TCS Credit Received Statement

26. What happens after the TDS and TCS Credit Received statement is filed?

After TDS and TCS Credit received statement is filed:

ARN is generated on successful filing of the statement.

Accepted TDS/ TCS credit amount will be credited to your Electronic Cash Ledger.

An SMS and an email are sent to the applicant on his registered mobile and email id. The statement will be available in the Dashboard of the tax officer.

The statement can be seen by the Tax Official. 

Conclusion

Claiming TDS and TCS credits in GST doesn’t have to be overwhelming. By following the structured process provided in the GST portal—reviewing auto-populated entries, taking appropriate action, and filing the statement—you ensure that your electronic cash ledger reflects the correct credits, enabling you to manage your tax liabilities effectively. Staying informed about each step not only helps avoid errors but also ensures compliance and better financial planning for your business under the GST framework.

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