TDS IN GST- GSTR7 AMENDMENT

[CABIJENDERKUMAR BANSAL]

Fact of case:

Govt. deductor deduct Tds (gst) of a deductee and filed GSTR 7 return.But while filing the return,amount of Tds has been entered excess against deductee GST No. by mistake.

Deductee also accept the excess Tds in his portal login and the same has been credited in his Electronic cash ledger.

Now deductor saying that because of deductee already accepted the tds amount,amendent cannot be made by him. So they are demanding excess amount of tds in cash from deductee to compensate the same.

Query:

1) whether deductor still make amendment in return to rectify the same.

2) whether deductee should re-imburse the excess tds in cash to deductor

3) whether there is any possibility of demand in following years due to excess tds accepted by deductee

[KASTURI SETHI]

Query-wise reply :-

1. Once the return has been filed there is no provision for amendment of this return , especially, when the TDS amount has been accepted by the deductee. Once the deductee accepts the TDS amount mentioned GSTR-7, credit will be auto-reflected in deductee's Electronic Cash Ledger. So deductor cannot claim refund from the department as per proviso to Section 51 (8) of CGST Act. Amendment in the current return is possible only if amount of TDS is rejected by the deductee otherwise not. However, this lapse can be rectified in next month's return.

2. As per Table No.4 read with Instruction No.3 of Form GSTR-7, the deductor can adjust/.make amendment in the next return.

3. No. At present there is no provision. The deductor can self-adjust the amount paid in excess.

One has to be very careful while filing GSTR-7 .

[YAGAY andSUN]

You may make representation to GST Council for incorporating such provisions in relation with inadvertent excess TDS.

[KASTURI SETHI]

Excess paid is not the 'asset' of the deductee. On moral grounds the deductee should refund the amount in cash. Regarding legal recourse, I am of the view that suggestion given by Yagay and Sun should be given practical shape as someone has to come forward to take initiative in the interest of Trade and Industry. Only email to the Chairman, GST Council will click.

[CABIJENDERKUMAR BANSAL]

thank u all

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of both experts.

AI Summary

TDS in GST: excess TDS accepted by deductee cannot be amended in filed GSTR-7; rectify in subsequent return. Once a filed GSTR-7 shows excess TDS accepted by the deductee and reflected in the Electronic Cash Ledger, the filed return cannot be amended to reclaim that amount; correction must be effected by adjustment in the next GSTR-7 return and the deductor may self-adjust excess payments, while cash reimbursement by the deductee remains a commercial remedy rather than an automatic statutory right.