December 26, 2022

GSTR-7: Return Filing, Format, Rules

Individuals who deduct tax at source or TDS under the Goods and Services Tax must file GSTR-7 every month (GST). Every GST registered person who deducts TDS must file Form GSTR-7 by the 10th of the following month. TDS deducted, TDS payable, TDS refund and other information are included in the form.

Who is eligible to deduct TDS under GST?

The following individuals/entities are allowed to deduct TDS under the GST law:

1. A federal or state government department organization.

2. A local government.

3. Governmental organisations.

4. The Central or a state may notify individuals or groups of individuals. on the Council's recommendations to the government

5. An authority, a board, or any other body established by Parliament, a State Legislature, or a government that owns 51% of the equity (control).

6. A society founded by the federal government, a state government, or a local government, and registered under the Societies Registration Act of 1860.

7. Public-sector enterprises.

TDS must be deducted by the above deductors where the total value of supply under the contract exceeds Rs.2.5 lakh. TDS is charged at a rate of 2% (CGST 1% + SGST 1%) in the case of intrastate supplies and 2% (IGST) in the case of interstate supplies. TDS will not be deducted, however, if the supplier's location and place of supply differ from the recipient's registration place (state).

Due date of GSTR-7

The filing of GSTR-7 for a month is due on the 10th of the following month.

Importance of GSTR-7

GSTR-7 details the TDS deducted, the number of TDS paid and payable, and any TDS refund claimed. TDS can be claimed as an Input Tax Credit (ITC) by the deductee (the person whose name TDS has been deducted) and used to pay the output tax liability.

After the due date for filing Form GSTR-7, the details of TDS deducted are available electronically to each deductee in PART 'C' of Form GSTR-2A. In addition, the certificate for such TDS deducted shall be available in Form GSTR-7A based on the GSTR-7 return.

Penalty for non-filing of GSTR-7

If the GST return is not filed on time, a penalty of Rs.100 under CGST and Rs.100 under SGST, for a total of Rs.200 per day, will be levied. The maximum late fee, however, should not exceed Rs.5,000. In the event of a late filing, there is no late fee on IGST.

In addition to late fees, an 18% annual interest rate must be paid. It must be calculated based on the TDS paid. The period for calculating interest will be from the next day after the due date of filing to the payment date.

Revision GSTR-7

Once filed, GSTR-7 cannot be revised. Any errors in the next month's GSTR-7 can be corrected by the deductor. It means that if an error is made in October GSTR-7, it can be corrected in November GSTR-7 or later months when the error or omission is discovered.

GSTR-7 Return Filing Swipe

Details in GSTR-7

Each taxpayer will be assigned a PAN-based 15-digit Goods and Services Taxpayer Identification Number based on their state (GSTIN). The taxpayer's GSTIN will be auto-populated during the return filing process.

2. The legal name of the deductor:
When logging into the common GST portal, the taxpayer's name will be auto-populated. Furthermore, any registered person's trade name will be auto-populated.

3. Details of the tax deducted at source:
You must include the details of the TDS deducted here, such as the deductee's GSTIN, total amount, and TDS amount (central/state/integrated).

4. Changes to details of TDS for any earlier tax period:
Any corrections to the data submitted in previous months' returns can be made here by filling out the original and revised details. The TDS certificate (GSTR-7A) will be revised as a result of this amendment.

5. Tax deduction at source and paid:
You must include the tax (integrated/central/state) amount deducted from the deductee as well as the tax (integrated/central/state) the amount paid to the government in this section.

6. Interest, late fee payable, and paid:
If there is any interest or late fees applicable on the TDS amount, you must mention the details of such interest and late fees payable along with the amount paid to date.

7. Refund claimed from electronic cash ledger:
If you want to claim a TDS refund from your electronic cash ledger, you must include this information in this section. You must also provide the bank account to which the TDS refund 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]:
When you finish filling out the return and paying the TDS and interest, the entries in this section are auto-populated.

Once all of the information has been correctly provided, the taxpayer must sign a declaration confirming the accuracy of the information. The return can be authenticated by the deductor using either a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC).


Check Out: GSTR-9: Overview, Filing Nil Return on GSTR-1 via SMS, GSTR 1: Filing, Eligibility and Due Dates.

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