What is GSTR 7?

  • GSTR-7 form is a monthly return form required to be furnished by all taxable persons who are required to deduct TDS (Tax Deducted at Source) under  Form GSTR-7 will show the details of TDS deducted amount of TDS paid and payable and any refund of TDS claimed.
  • The deductee i.e. the person whose TDS has been deducted can claim the ITC of such TDS deducted and utilize the same for the payment of output tax liability.

 . The details of TDS deducted are available electronically to each deductee in Form GSTR-2A after the due date of filing of Form GSTR-7.

Who are required to deduct TDS and file GSTR-7?

  • A department or establishment of the Central or State Government, or
  • Local authority, or
  • Governmental agencies, or
  • Persons or category of persons as may be notified, by the Central or a State Government on the recommendations of the Council.
  • An authority or a board or any other body which has been set up by Parliament or a State Legislature or  by a government, with 51% equity ( control) owned by government
  • A society established by the Central or any State Government or a Local Authority and the society is registered under the Societies Registration Act, 1860
  • Public sector undertakings

What are the conditions for deducting TDS?

  • Total value of such supply, under an individual contract, exceeds Rs. 2,50,000/-.
  • Deduction of Tax is required when the location of supplier and place of supply is same as the State of the registration of the recipient.

How to file GSTR-7?

Following details needs to be filled before filing GSTR-7:

  1. Provide GSTIN: Each taxpayer will be allotted a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). GSTIN of the taxpayer will be auto-populated at the time of return filing.
  2. Legal name of the Deductor: Name of the taxpayer will be auto-populated at the time of logging into the commonGST Portal. Also if there is any trade name of the registered person, then it will also get auto populated.
  3. Details of the tax deducted at source: Here you need to mention the details in respect of TDS deducted such as GSTIN of the deductee, total amount and TDS amount (Central/state/integrated.)
  4. Amendments to details of tax deducted at source in respect of any earlier tax period: Any correction to the data submitted in the return of previous months can be done here by filling the original and revised details in this section. Based on this amendment, TDS certificate (GSTR-7A) will get revised.
  5. Tax deduction at source and paid:Here you need to mention the details of the tax (integrated/central/state) amount deducted from the deductee and the tax (integrated/central/state) amount paid to the government.
  6. Interest, late Fee payable and paid: If there is any interest fees or late fees applicable on TDS amount, you must mention the details of such interest and late fees payable along with the amount paid till date.
  7. Refund claimed from electronic cash ledger:If you want to claim the refund of TDS from your electronic cash ledger, you must mention such details here in this section. You should also provide your bank details where the refund for TDS should be credited.
  8. Debit entries in electronic cash ledger for TDS/interest payment [to be populated after payment of tax and submissions of return]:The entries in the section are auto populated, once you finish filing the return and the payment of TDS along with interest if any.

Once all the particulars are furnished correctly, the taxpayer is required to sign a declaration regarding the correctness of the information furnished under various heads either through a digital signature certificate (DSC) or Aadhar based signature verification to authenticate the return.

Other points:

  • The deductee i.e. the person whose TDS has been deducted can claim the input credit of such TDS deducted and utilize for the payment of output tax liability. The details of TDS deducted are available electronically to each of the deductees in PART ‘C’ of Form GSTR 2A after the due date of filing of Form GSTR 7.
  • Filing of GSTR 7 for a month is due on 10th of the following month.
  • If the GST return is not filed on time, then penalty of Rs 100 under CGST & Rs 100 under SGST shall be levied. The total will be Rs. 200/day. The maximum is Rs. 5,000. There is no late fee on IGST in case of delayed filing.

Along with late fee, interest has to be paid at 18% per annum. It has to be calculated by the taxpayer on the tax to be paid. The time period will be from the next day of due date of filing to the date of payment.

  • GSTR 7 once filed cannot be revised. Any mistake made in the return can be revised in the next month’s return. It means that if a mistake is made in October GSTR 7, rectification for the same can be made in November GSTR 7 or in later months when the error or omission is identified.


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