How to differentiate TDS credit with Transition credit?

Posted on 11 June 2022 Category : GST terms difference

Difference between Transition credit and TDS credit under GST terms

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

Under GST system, the following information explains about TDS credit and Transition credit.

As per GST terms, under TDS credit, the amounts deducted by the deductor get reflected in the GSTR-2 of the supplier (deducted). 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. A TDS certificate is required to be issued by deductor (the person who is deducting tax) in Form GSTR-7A to the deducted (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. Transition credit means balance of input tax credit under Pre-GST Regime to carry for the purpose of setoff against the GST Liability in GST Regime.

The details about TDS credit and Transition credit with simple language from GST terms have been mentioned in this web blog separately. We suggest you to read these articles on TDS credit and Transition 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 TDS credit and Transition credit separately below. You may kindly read the below links to know more about Transition credit and TDS credit.

Term TDS credit, TDS certificate under GST

Term Transition credit under GST

The above information easily explains about Transition credit and TDS credit.

We hope, you have satisfied with the difference between TDS credit and Transition credit explained above. Do you have different thought on difference between Transition credit and TDS credit?

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