Find
TDS under Sec 51 and TCS under Sec 52 credited to your cash ledger, once accepted, become part of the cash balance. Circular 166/22/2021-GST dealt with refund of such amounts, and the excess after dues can be claimed as excess cash balance.
GST
TDS and TCS credit sitting in the cash ledger
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Provisions
Sec 52, CGST Act 2017; Sec 49(6), CGST Act 2017; Circular 166/22/2021-GST
Analysis
A contractor receiving 2 percent TDS from government payments often has more cash than tax due. Accept the credit, use it for tax, and claim refund of the rest. Check that the deductor's or operator's return matches your sales to avoid questions.
Close
- Accept TDS and TCS credit on the portal
- Use the cash balance for current liabilities
- Compute the excess
- File RFD-01 for the excess
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