Refund of TDS credit

[KARAN VERMA]

Sir, whether TDS credit received and stand in Electronic cash ledger is eligible for refund because all my output liability adjusted through input tax credit

If refudn is eligible, then under which category? Please describe.

[KASTURI SETHI]

Refund of TDS Credit is allowed. The category is crystal clear. Go through the following extracts of CGST Actserial-wise/step by step :-

SECTION 51. Tax deduction at source

(8) The refund to the deductor or the deductee arising on account of excess or erroneous deduction shall be dealt with in accordance with the provisions of section 54 :

Provided that no refund to the deductor shall be granted, if the amount deducted has been credited to the electronic cash ledger of the deductee.

SECTION 54. Refund of tax. - (1) Any person claiming refund of any tax and interest, if any, paid on such tax or any other amount paid by him, may make an application before the expiry of two years from the relevant date in such form and manner as may be prescribed :

Provided that a registered person, claiming refund of any balance in the electronic cash ledger in accordance with the provisions ofsub-section (6) of section 49, may claim such refund in the return furnished under section 39 in such manner as may be prescribed.

SECTION 49. Payment of tax, interest, penalty and other amounts. -

(6) The balance in the electronic cash ledger or electronic credit ledger after payment of tax, interest, penalty, fee or any other amount payable under this Act or the rules made thereunder may be refunded in accordance with the provisions of section 54.

[DR.MARIAPPAN GOVINDARAJAN]

Yes, it can be refunded.

AI Summary

Refund of TDS Credit in Electronic Cash Ledger Allowed Under GST, Refer Sections 51 and 54 of CGST Act. A user inquired about the eligibility for a refund of TDS credit standing in the Electronic Cash Ledger under GST, as their output liability was adjusted through input tax credit. Kasturi Sethi responded affirmatively, explaining that the refund is allowed and referenced sections 51 and 54 of the CGST Act, which outline the process for claiming refunds, including the conditions and timelines. Dr. Mariappan Govindarajan also confirmed that such a refund is possible. The discussion focused on the procedural aspects of claiming a refund for TDS credit under the GST framework.