TDS credit and Reversal of input tax credit

Posted on 11 June 2022 Category : GST terms difference

How to differentiate Reversal of input tax credit with TDS credit?

Difference between TDS credit and Reversal of input tax credit under GST terms

What is Reversal of input tax credit? How does TDS credit work under GST regime? What are the difference between Reversal of input tax credit and TDS credit?

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.

A registered person, who has availed of input tax credit on any inward supply of goods or services or both, but fails to pay to the supplier thereof, the value of such supply along with the tax payable thereon, within the time limit specified in the second proviso to sub-section (2) of section 16, shall furnish the details of such supply, the amount of value not paid and the amount of input tax credit availed of proportionate to such amount not paid to the supplier in FORM GSTR-2 for the month immediately following the period of one hundred and eighty days from the date of the issue of the invoice:

TDS Cirtificate:- 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 Reversal of input tax credit and TDS credit with simple language from GST terms have been mentioned in this web blog separately. We suggest you to read these articles on Reversal of input tax credit 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 Reversal of input tax credit and TDS credit separately below. You may kindly read the below links to know more about TDS credit and Reversal of input tax credit.

Term Reversal of input tax credit in the case of non-payment under GST

Term TDS credit, TDS certificate under GST

The above information easily explains about TDS credit and Reversal of input tax credit.

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

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Section 74 Determination of tax not paid, CGST Act, 2017

Officers to assist proper officers, Sec 72 of CGST Act, 2017

Inspection of goods in movement, Sec 68 of CGST Act, 2017

Section 67 of CGST Act, 2017 Power of inspection, search and seizure

Section 20 of IGST Act,2017 Application of provisions

Tax wrongfully collected and paid to Central Government or State Government, IGST Act,2017

Zero rated supply, section 16 of IGST Act,2017

section 14 of IGST Act,2017, Special provision for payment of tax by a supplier

Section 59 of CGST Act, 2017 Self-assessment