Claiming TCS Credit in GST: A Comprehensive Guide

The Goods and Services Tax (GST) regime in India mandates taxpayers to deduct or collect tax at the source (TDS/TCS) on specific transactions. This tax is then deposited with the government, and the taxpayers can claim credit for the deducted/collected tax while filing their GST returns. This guide provides a comprehensive overview of the process for claiming TCS credit in GST, including eligibility, filing procedures, and important considerations.

Understanding TCS in GST

TCS (Tax Collected at Source) is a mechanism where certain entities, such as e-commerce operators and government departments, are required to collect tax at the source on specified transactions. The collected tax is then deposited with the government, and the recipient of the goods or services can claim credit for the TCS amount while filing their GST returns.

Eligibility for Claiming TCS Credit

Taxpayers who have received goods or services on which TCS has been deducted are eligible to claim the credit. The credit can be claimed against the GST liability on the recipient’s GST return.

Process for Claiming TCS Credit

The process for claiming TCS credit involves the following steps:

  1. Login to GST Portal: The taxpayer must log in to the GST portal using their credentials.
  2. Navigate to ‘Services’ Menu: Once logged in, navigate to the ‘Services’ menu and select ‘Returns.’
  3. Select ‘TDS/TCS Credit Received’: Under the ‘Returns’ section, select the ‘TDS/TCS Credit Received’ option.
  4. Provide Return Details: Select the appropriate financial year and return period for which the TCS credit is being claimed.
  5. View Auto-Populated Data: The GST portal will auto-populate the TCS credit details based on the Form GSTR-8 filed by the TCS collector.
  6. Verify and Accept/Reject Records: Carefully review the auto-populated data and accept or reject each record. Accepting a record indicates that the taxpayer acknowledges the TCS credit, while rejecting a record indicates that the taxpayer disputes the credit.
  7. Submit the Form: Once all the records have been reviewed and accepted/rejected, submit the ‘TDS/TCS Credit Received’ form.

Important Considerations

  • Time Limit for Claiming Credit: There is no specific time limit for claiming TCS credit. However, it is advisable to claim the credit before filing the GSTR-3B return to avoid any potential issues.
  • Amendment of TCS Credit: If any amendments are made to the TCS credit details after the initial filing, the taxpayer must file a revised ‘TDS/TCS Credit Received’ form.
  • Consequences of Incorrect Claim: Claiming TCS credit for which the taxpayer is not eligible can lead to penalties and interest charges.

Claiming TCS credit in GST is a straightforward process that allows taxpayers to utilize the tax deducted at the source against their GST liability. By following the steps outlined in this guide and adhering to the important considerations, taxpayers can ensure accurate and timely claim of TCS credit.



Is TCS applicable on GST amount?

So the amount debited to the buyer’s account or payment received by the seller shall be inclusive of VAT/excise/GST. Hence, one should collect the TCS inclusive of GST.

Can I claim TCS on foreign remittance?

TCS on foreign remittance – compliance and reporting The TCS amount will then be documented on your Form 26AS – an annual statement summarising taxes deducted. Accurately reporting TCS on your income tax return is crucial to avoid penalties. If TCS exceeds your total tax dues, you can claim a refund for the surplus.

How do I deduct TDS on GST?

The amount of TDS deducted should be deposited with the govt by the deductor by the 10th of the next month in Form GSTR 7 through the online portal The deductor would be liable to pay interest if the tax deducted is not deposited within the prescribed time limit as mentioned above.

How to claim TDS & TCS credit in GST?

TDS so deducted in GST is also claimed in a similar way. Step 1: The first step would be to open the GST portal at Once the GST portal is opened, we need to move on to the navigation menu and under the “Services” tab, hover on to the “Returns” tab, and then move on to the “TDS and TCS credit received”.

What is tax collected at source (TCS) under GST?

Tax Collected at Source (TCS) under GST means the tax collected by an e-commerce operator from the consideration received by it on behalf of the supplier of goods, or services who makes supplies through the operator’s online platform.

When will TCS provisions be made applicable After GST implementation?

After deferring the provisions related to TCS since the implementation of GST, Government has, vide Notification No. 50/2018 – Central Tax dated September 13, 2018 and Notification No. 51/2018 – Central Tax dated September 13, 2018, appointed 1st October, 2018 as the date from which the TCS provisions shall be made applicable.

What is TCS under GST?

TCS under GST i.e. Tax Collected at Source became applicable from 1st October 2018. Here is a brief explanation on TCS: Provisions of TCS are applicable to e-commerce operators. E-commerce operator is any person who owns and operates a digital platform to run the e-commerce business.

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