GST TDS Accounting Entries in Supplier Books

By | January 21, 2019
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(Last Updated On: January 21, 2019)

GST TDS Accounting Entries

Here we will discuss GST TDS Accounting entries. Refer Video Lecture by CA Satbir Singh in Hindi

Suppose following invoice is issued by (A Ltd ) Supplier to recipient (ABC Public Sector undertaking / Govt public Sector undertaking) for Taxable Goods and Services on 01.10.2018

([ It is assumed that supply is inter state supply hence IGST will be charged and TDS @ 2% will be deducted under IGST, If it is intra state Supply then CGST and SGST will be charged and TDS will be deducted under CGST 1% and SGST 1% )

S.NoInvoice ParticularsAmount (Rs.)
1Base value of Invoice10,00,000
2IGST Charged on Invoice @ 18%1,80,000
3Total Invoice Value11,80,000

Entry on Issue of Invoice

Following entry will be made in Books of A Ltd

ABC Public Sector undertaking A/c Dr1180000
To IGST Payable A/C180000
To  Outward Supply (Inter state)1000000
( Being Invoice No… Dated…)

Value on which GST TDS will be deducted

Rate and Type of TDS {Section 51(1) of CGST Act 2017 }

1. Interstate= 2% IGST

2. Intrastate= 1% CGST +1 %SGST

[ Note TDS shall be deducted on basic value excluding GST charged on the invoice for supply of goods, services or both. {Explanation to Section 51 (1)} ]

S.NoInvoice ParticularsAmount (Rs.)
1Base value of Invoice10,00,000
2IGST Charged on Invoice1,80,000
3Total Invoice Value11,80,000
4TDS to be deducted by ABC Public Sector undertaking (Rs 10 Lacs X 2%)20,000

Entry in A Ltd books when TDS is deducted by ABC Public Sector undertaking

CGST TDS Receivable Account  A/c Dr
UT/SGST TDS Receivable Account A/c Dr
IGST TDS Receivable Account A/c Dr20000
To ABC Public Sector undertaking A/c / Sundry Debtors Account20000
( Being TDS deducted on Invoice No… Dated…)

Acceptance of GST TDS on GST Portal by Supplier

When GST TDS Payment is made by Recipient and Accepted by the supplier ( A Ltd) , after end of the month then GST TDS will be credited into the Electronic Cash Ledger of supplier

Electronic Cash Ledger A/c Dr20000
To CGST TDS Receivable Account  A/c
To UT/SGST TDS Receivable Account A/c
To IGST TDS Receivable Account A/c20000
( Being TDS accetpted on GST Portal and credited into Electronic Cash Ledger on GST Portal against Invoice No ………… Dated )

Utilization of GST TDS by the Supplier

A Ltd will use the amount available in Electronic Cash Ledger to pay its GST Liabilities

IGST Payable A/c Dr20000
CGST Paybale A/c Dr ( if Any)
SGST Payable A/c Dr (if Any)
To Electronic Cash Ledger A/c20000
( Being IGST Liability discharged from Electronic Cash Ledger)

Important Point :

Always Tally your

  • Electronic Cash Ledger as appearing in your Books of Accounts and on GST Portal
  • Electronic Credit Ledger as appearing in your Books of Accounts and on GST Portal
  • Electronic Liability Register as appearing in your Books of Accounts and on GST Portal

Related Post

when GST TDS will not be deducted : List of situations

GST TDS SOP released by CBIC : Download

[Video] who is required to deduct GST TDS : GST News 495

How to get GST TDS Refund

CBEC Circular No 65/39/2018-DOR : Guidelines for TDS by DDO under GST

Attention all DDO’S : TDS under GST w.e.f 01.10.2018 : Circular

Applicability of GST TDS on Inter State Supply ?

Separate GST registration for tax deductor required



Direct Taxes Ready Reckoner
Service Tax Ready Reckoner
Company Law Ready Reckoner
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