TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) in GST are mechanisms introduced to ensure proper tax collection, transparency, and compliance. Both TDS and TCS entries are reflected in the supplier’s account and must be accepted to get the benefit of credit in their electronic cash ledger.

Here are the key points about TDS and TCS Received in GST:

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1. TDS (Tax Deducted at Source) Received:

• Meaning of TDS:
  TDS in GST refers to the tax amount deducted by certain notified entities (such as government departments, local authorities, or PSUs) while making payments to suppliers for taxable goods or services.
• When TDS is Deducted:
  If the value of supply under a contract exceeds the prescribed threshold, the deductor is required to deduct a certain percentage as TDS before making payment.
• Reflection in GST Portal:
  The deducted amount is reflected in the supplier’s TDS Received page on the GST portal.
• Action by Supplier:
  The supplier must review and accept the TDS entries. Once accepted, the deducted tax is credited to their electronic cash ledger, which can be used to pay GST liabilities.
• Importance:
  Timely acceptance of TDS ensures smooth flow of credit and avoids discrepancies in tax payments.

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2. TCS (Tax Collected at Source) Received:

• Meaning of TCS:
  TCS in GST refers to the tax amount collected by e-commerce operators while making payments to suppliers who sell goods or services through their platform.
• When TCS is Collected:
  The e-commerce operator collects TCS at a prescribed rate on the net value of taxable supplies made through their platform.
• Reflection in GST Portal:
  The collected TCS amount is reflected in the supplier’s TCS Received page on the GST portal.
• Action by Supplier:
  The supplier needs to verify and accept the TCS details. Once accepted, the TCS is credited to their electronic cash ledger.
• Importance:
  Acceptance of TCS entries ensures the supplier gets full benefit of tax collected on their behalf and can adjust it against their GST liabilities.

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3. Overall Significance:

• Both TDS and TCS Received help in ensuring tax compliance and maintaining transparency.
• Suppliers must regularly check their TDS/TCS Received pages and accept entries to claim credit.
• These credits reduce the supplier’s out-of-pocket tax payments and simplify GST return filing.

With Munim GST, you can easily track, verify, and file your TDS and TCS received entries in just a few clicks—ensuring faster credit, error-free compliance, and peace of mind.