TDS dedudted after 3 years after reporting invoices in GSTR 1

[YOGESH VARSHNEY]

Dear Sir

We have executed works contract in 2018-19 for a Govt Body, They deducted GST TDS in 2021-22, which we came to know Now ( i.e Nov-24) when EIU mismatch Notice came to us for mismatch of Turnover in TDS return filed by Deductor and Nil GSTR-1 Return filed by us in Nov-21, Till we not accepted the TDS credit. Based on these GST Dept is Demanding Tax and Interest for which we have already Paid Tax in 2018-19 and furnished details in GSTR 1. Just Because Deducter has Made payment and deducted tax and filed return after 3 Years, now what should be done

[Shilpi Jain]

You should proceed to accept the TDS credit since the deductor has paid it to the department.

The mismatch notice has to be replied stating that tax already paid and furnish proof for the same.

AI Summary

TDS credit acceptance advised where deductor remitted funds belatedly; respond to mismatch notice with proof of earlier tax payment. A supplier should accept the TDS credit where the deductor has remitted the deducted tax; respond to the electronic mismatch notice by stating the tax was paid in the earlier period and furnish documentary proof such as GSTR 1 details and payment challans to secure rectification of the credit ledger.