GST on advance received after TDS

[Ashiesh Prremji]

Dear Experts,

If advance received is Rs, 10,800(10000+1800 GST-1000 TDS), My query is-

1. what will gst liability on advance whether 1800 or 1648 (by grossing up 10,800) ?

2. Also whether TDS receivable can be booked if Invoice not raised. In that case if supply cancelled & we Refund ₹ 10,800/ after few months.

Is there any circular regarding that....Pl share. Seek your advice.

Thanks,

[Shilpi Jain]

Gst liability will be 1800. The 1000 which is deducted as TDS is going to your account only.

[Ashiesh Prremji]

Thanks for Reply Madam!

But please also clear, can we book TDS receivable at point of advance received without issuing Invoice. Those income which has not been shown, pertaining to that can we take benefit of tds.

[Shilpi Jain]

Sir regarding tds u will have to put the query under IT. Am not a person to reply on that aspect.

[Rajagopalan Ranganathan]

Sir,

GST is payable on the gross amount charged which will include TDS deducted. Therefore GST is payable on ₹ 11000/-

[Ganeshan Kalyani]

Sir, I hope the query is related to advance received against supply of service and not supply of goods..

AI Summary

GST on gross value: tax remains payable despite TDS deductions; TDS accounting is an income tax matter requiring separate treatment. GST is payable on the gross value of supply; a TDS deduction from amounts remitted does not reduce the GST liability and tax must be accounted on the full contractual consideration. Recognition of the deducted sum as a TDS receivable is governed by income tax accounting and requires separate IT guidance. Invoicing, refund on cancellation, and reversal of any TDS receivable are procedural matters and do not alter the principle that GST is due on the gross amount.