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TDS DEDUCTION ON ADVANCE BUT NOT SHOW IN GST

akshay jaiswal (associate) (127 Points)

04 July 2023

sir I had received advance on March 23 for which invoice not issued and also I had not shown advance and not pay tax in GST now I am filling my itr and the 26as show that tds deducted against that advance receipt so how I'm now suppose to file my itr now which turnover I should show according to GST or according 26as because if I show according GST and claim tds against advance receipt is there a chance of notice ?? also I have issued invoice of full to that party but it's in may23 this year

kindly help

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4 Replies

JINAL SONI (22 Points)
Replied 04 July 2023

File ITR as per 26AS.
Regarding Gst only interest liability may arise for tax payments in May 23 instead of Mar 23.

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akshay jaiswal (associate) (127 Points)
Replied 04 July 2023

Ok Thanks

Pranjal Gupta (141 Points)
Replied 05 July 2023

Reporting Advance Receipt: In the GST system, it is generally required to report advances received, even if no invoice was issued at the time of receiving the advance. It is advisable to rectify the situation by showing the advance receipt in your GST returns for the appropriate tax period. This will help maintain accurate records and comply with GST regulations.
Showing Turnover: When filing your ITR, you should ideally report your turnover as per the provisions of the Income Tax Act. The turnover reported in your ITR may not necessarily match the turnover shown in your GST returns. It is recommended to consult with a tax professional or chartered accountant to determine the appropriate turnover to be shown in your ITR based on the specific circumstances of your business.
TDS Claim: If TDS has been deducted against the advance receipt, you can claim the TDS credit while filing your ITR. The TDS amount can be adjusted against your tax liability.
Possibility of Notice: The chances of receiving a notice depend on various factors, including the scrutiny process of the tax department. While it is always advisable to comply with tax regulations and rectify any discrepancies, the possibility of receiving a notice cannot be ruled out entirely. It is best to consult with a tax professional who can provide personalized advice based on your specific situation.

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