Full Procedure to File TDS & TCS Credit Received on GST Portal

TDS and TCS credit received is one of the filing options available on the

GST portal under the ‘Returns’ tab. The taxpayer whose TDS is deducted or TCS is collected must file the ‘TDS and TCS received’ on the GST portal. The present article provides an understanding of the need to file the ‘TDS and TCS credit received’, the procedure for filing the same online, and also describes the effect of ‘Accept’ or ‘Reject’ by the deductee (taxpayer).

Understanding the need to file ‘TDS and TCS credit received’

The flow of

TDS or TCS credit is simplified hereunder-

The appropriate tax on specified transactions will be first deducted or collected by the TDS deductor or TCS collector.
After that, the TDS deductor or TCS collector is required to file GSTR-7 or GSTR-8 return. The said returns are to be submitted by the 10th of the succeeding month.
The deductee is required to either accept or reject the TDS credit or TCS credit by filing the ‘TDS and TCS credit received’ on the GST portal.
The accepted deducted or collected amount will appear in the Electronic Cash Ledger, which can be utilized for tax payment of the respective period.

Concluding thereby that the TDS credit or the TCS credit as reflected by the TDS deductor or TCS collector in the GST return, is required to be accepted or rejected by the deductee via ‘TDS and TCS credit received’ on the GST portal. Interestingly, there is no prescribed due date for filing of ‘TDS and TCS credit received’. However, logically speaking, the deductee should file the same within their respective tax payment dates i.e., 20

th of the following month for the taxpayer liable to file Form GSTR-3B or 18th of the month following the quarter for the taxpayer liable to file Form GSTR-4.

Procedure for filing the ‘TDS and TCS credit received’ on the GST portal

The deductee should follow the below steps to file the ‘TDS and TCS credit received’ on the GST portal- STEP 1 – Visit the site

/. STEP 2 – Click on the ‘Login’ icon given on the right-hand side. STEP 3 – Enter the appropriate ‘Username’ and ‘Password’. Also, type the characters you see in the image below and click ‘LOGIN’. STEP 4 – Navigate the path – Services > Returns > TDS and TCS credit received. STEP 5 – Select the relevant ‘Financial Year’ and ‘Return Filing Period’ from the drop-down list and click on ‘SEARCH’. STEP 6 – The ‘TDS and TCS credit received’ with the option of ‘PREPARE ONLINE’ will appear. Click on ‘PREPARE ONLINE’. STEP 7 – Following four tabs will be displayed (two each for TDS credit and TCS credit)-

Tab	Details / Purpose
TDS Credit Received	To accept/ reject the TDS Credit Received (here, the TDS credit available to the deductee will be auto-populated based on the Form GSTR-7 filed by all the deductors).
Amendments to TDS Credit Received	To accept/ reject any amendments made to the TDS Credit Received details by the deductor, which was earlier accepted by the deductee.
TCS Credit Received	To accept/ reject the TCS Credit Received (here, the TCS credit available to the deductee will be auto-populated based on the Form GSTR-8 filed by all the collectors).
Amendments to TCS Credit Received	To accept/ reject any amendments made to the TCS Credit Received details by the collector, which was earlier accepted by the deductee.

Based on the details populated in the above four tabs, the taxpayer needs to accept or reject the same. STEP 8 – Click on ‘PREVIEW DRAFT TDS AND TCS CREDIT RECEIVED’ and preview the same. STEP 9 – Click on ‘PROCEED TO FILE’. STEP 10 – Submit the same by either using DSC or using EVC.

Effect of ‘Accept’ or ‘Reject’ by the deductee

As seen above, the deductee while filing the ‘TDS and TCS Credit Received’ is required to accept or reject the details populated in the four tabs (as mentioned above). Hence, it is important to understand the effect of the ‘Accept’ or ‘Reject’ selected by the deductee, which is explained hereunder-

‘Accept’ – the accepted amount will be credited to the Electronic Cash Ledger’ of the deductee after filing the ‘TDS and TCS Credit Received’.
‘Reject’ – the details will be reflected in Table 4 of the Form GSTR-7 or Form GSTR-8 of the respective TDS deductor or TCS collector, while filing the return of the subsequent tax period.

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Frequently Asked Questions

Common questions about Filing TDS and TCS Credit Received on GST Portal.

The purpose of filing 'TDS and TCS credit received' on the GST portal is to accept or reject the Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) credit received by the deductee (taxpayer). The accepted amount will be credited to the deductee's Electronic Cash Ledger, which can be utilized for tax payment.

While there is no prescribed due date for filing 'TDS and TCS credit received', it is advisable for the deductee to file it within their respective tax payment dates, i.e., 20th of the following month for GSTR-3B filers or 18th of the month following the quarter for GSTR-4 filers.

The steps involve logging in to the GST portal, navigating to the 'TDS and TCS credit received' section, selecting the relevant financial year and period, and then accepting or rejecting the TDS and TCS credit details populated based on the GSTR-7 and GSTR-8 filed by the deductors/collectors. Preview and file the same using DSC or EVC.

If the deductee accepts the TDS or TCS credit received, the accepted amount will be credited to their Electronic Cash Ledger after filing the 'TDS and TCS credit received'. This credited amount can be utilized for tax payment of the respective period.

If the deductee rejects the TDS or TCS credit received, the rejected details will be reflected in Table 4 of the Form GSTR-7 or Form GSTR-8 of the respective TDS deductor or TCS collector while filing the return of the subsequent tax period.

Yes, there are separate tabs for 'Amendments to TDS Credit Received' and 'Amendments to TCS Credit Received' in the 'TDS and TCS credit received' section. The deductee can accept or reject any amendments made by the deductor or collector to the previously accepted TDS or TCS credit details.

No, there is no prescribed due date or time limit for filing 'TDS and TCS credit received' on the GST portal. However, it is advisable to file it within the respective tax payment dates to ensure timely utilization of the accepted credit.

Yes, the deductee has the option to partially accept or reject the TDS or TCS credit received. They can accept or reject the credit on a transaction-wise basis.

If the deductee does not file 'TDS and TCS credit received', the TDS or TCS credit reflected by the deductor or collector will not be credited to the deductee's Electronic Cash Ledger, and hence, cannot be utilized for tax payment.

'TDS and TCS credit received' is required to be filed by all taxpayers whose TDS is deducted or TCS is collected on specified transactions. It is a necessary step to accept or reject the credit to avail the accepted amount for tax payment.