Difference between TDS credit and Refund of Interest under GST terms

Posted on 11 June 2022 Category : GST terms difference

How to differentiate Refund of Interest with TDS credit?

What is Refund of Interest? How does TDS credit work under GST regime? What are the difference between Refund of Interest and TDS credit?

Under GST system, the following information explains about Refund of Interest and TDS credit Refund of Interest

“Refund” includes refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies, or refund of tax on the supply of goods regarded as deemed exports, or refund of unutilized input tax credit due to a higher tax rate on the input than the output.

Under TDS credit, the amounts deducted by the deductor get reflected in the GSTR-2 of the supplier (deductee). The supplier can take this amount as credit in his electronic cash register and use the same for payment of tax or any other liability.

As per GST terms, Refund of Interest means The refunds under Central excise and service tax laws take long time. However, in GST Regime, refunds are expected to be processed faster with 90% of the total refund amount being available on submission of proper documents. TDS credit means A TDS certificate is required to be issued by deductor (the person who is deducting tax) in Form GSTR-7A to the deductee (the supplier from whose payment TDS is deducted), within 5 days of crediting the amount to the Government, failing which the deductor would be liable to pay a late fee of Rs. 100/- per day from the expiry of the 5th day till the certificate is issued.

The details about Refund of Interest and TDS credit with simple language from GST terms have been mentioned in this web blog separately. I suggest you to read these articles on Refund of Interest and TDS credit, so as to enable you to have a clear idea on these GST terms.

For your immediate reference, We give below web links on Refund of Interest and TDS credit separately below. You may kindly read the below links to know more about TDS credit and Refund of Interest .

What is Refund of Interest under GST

Whatsis TDS credit

The above information easily explains about TDS credit and Refund of Interest .

I hope, you have satisfied with the difference between Refund of Interest and TDS credit explained above. Do you have different thought on difference between TDS credit and Refund of Interest ?

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