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CMA Final · Indirect Tax Laws and Practice · TDS and TCS under GST

A registered supplier's payments have been subjected to TDS under GST. At what point does the amount deducted get credited to the supplier's electronic cash ledger?

The credit reaches the supplier's electronic cash ledger when the deductor furnishes the return in FORM GSTR-7 for the period. That return reports the tax deducted against the supplier, and its filing triggers the credit, rather than the payment date, invoice date or annual return.

  1. AOn the date the deductor makes the payment to the supplier
  2. BWhen the deductor furnishes the return in FORM GSTR-7 for the periodCorrect
  3. COn the date the supplier files its annual return
  4. DWhen the supplier raises the tax invoice

Explanation

The deductor files FORM GSTR-7 showing the tax deducted and the supplier (deductee) details. On furnishing this return, the amount is credited to the deductee's electronic cash ledger, and the deductee can see it through the TDS certificate in FORM GSTR-7A. Payment date or invoice date alone does not trigger the credit.

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