GST TCS on vendor payment

GST TCS can be applicable for Registered Vendor. On posting of GST TCS transaction against Vendor, system updates 'Liable to Pay' field in GST TDS/TCS Entry table as 'TRUE'. The GST TCS entries that have 'Liable to Pay' field 'TRUE' are displayed on the settlement page. The GST TCS Liability can only be paid through Cash or Bank. It can't be set off against any available credit.

For example, INR 1000 paid to the vendor and 1% GST TCS (0.50% CGST, 0.50% SGST for Intra-State or Intra-Union Territory and 1% IGST for Inter State) has to be calculated on payment amount.

The rates illustrate the example, not current statutory rates. Use CGST and SGST for the intrastate case, or IGST for the interstate case.

GST calculation appears in the Fact Box on Bank or Cash Payment Voucher as following:

Component Amount
Payment Amount 1000
GST Transactional Value 1,000
CGST Amount 5
SGST Amount 5
IGST Amount 10

GST TCS on vendor payment entry process

  1. [!INCLUDE [open-search](../../includes/open-search.md)] Enter Bank Payment Voucher or Cash Payment Voucher, and then choose the related link.

  2. Fill in the fields as described on Bank Payment Voucher or Cash Payment Voucher.

    Field Description
    Posting Date Specify the posting date of the document.
    Document Type Specify as 'Payment'
    Account Type Specify as 'Vendor'
    Account No. Select the relevant vendor code.
    Amount Specify the amount.
    Bal. Account Type Specify G/L Account or Bank Account.
    Location Code Specify the relevant location code.
    GST TCS State Code Specify the relevant state code.
    GST TDS/TCS Base Amount Specify the GST TCS calculation base amount.
    GST TDS/GST TCS Select TCS.

The vendor must be Registered, and GST TDS/TCS Base Amount must be nonzero. Enter GST TCS State Code before selecting TCS.

G/L entries for the intrastate example are as follows:

Particulars Amount
Vendor Account 1000
CGST TCS Payable Account -5
SGST/UTGST TCS Payable Account -5
Bank Account -990

G/L entries for the interstate example are as follows:

Particulars Amount
Vendor Account 1000
IGST TCS Payable Account -10
Bank Account -990

GST TDS TCS on Receipt

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