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TDS and GST on Previous year Invoices

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Smriti Anurag

36 Points Posted on 09 February 2023

Dear All,

I have received few invoices for the year FY 18-19,19-20 and 20-21.These invoices are current dated invoices.

RCM and TDS under commission is applicable on these invoices. Just need the clarification that should we deduct What should be the treatment of TDS and GST on these invoices. Should we charge GSt and deduct TDS on them or not.

Replies (5)

Quick Summary

This discussion addresses the treatment of TDS and GST on invoices received from previous financial years (FY 18-19, 19-20, and 20-21). Key points include the applicability of Reverse Charge Mechanism (RCM) and TDS under the Income Tax Act. The advice suggests that if the invoice date falls within the current financial year, RCM should be paid and ITC can be claimed, provided the transaction wasn't recorded previously. For invoices dated in prior financial years, RCM must still be paid, but ITC cannot be claimed. It's also advised to deduct TDS if it wasn't done at the time of the transaction.

CA Vidyasagar B

Assistant Manager

82 Points Posted on 09 February 2023

Dear Ma'am

Is TDS are you referring to in the question is TDS under Income Tax Act, 1961?

CA Vidyasagar B

Assistant Manager

82 Points Posted on 09 February 2023

Assuming whatever services you have received are liable under RCM

If the service is received from registered supplier - Tax has to be paid along with interest and no ITC can be availed

If the service is received from unregistered supplier - Self invoice to be issued in this case and Tax has to be paid along with interest but ITC can be availed

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

CA Altamush Zafar

GST Consultant

10402 Points Posted on 10 February 2023

If the date of invoice is of this FY then pay RCM and take ITC provided you didn't record such transaction in the respective FYs to which they pertain to.

If the dates of invoices are of previous FY then you will have to pay RCM but ITC cannot be claimed.