GSTR-7 Return Filing: Due Date, Format, Applicability, Late Fees and Rules

GSTR-7 is a monthly return filed by individuals who deduct tax at source or TDS under the Goods and Services Tax (GST). Every GST registered individual who deducts TDS under GST must file in Form GSTR-7 by the 10th of next month. The form contains details of TDS deducted, TDS payable, TDS refund, etc.

Latest Updates

23rd July 2024
In the Union Budget 2024, the Finance Minister proposed an amendment to Section 39 to mandate filing of returns by TDS deductors for every month, even if no deductions are made during the said month, and also to provide for an enabling clause for prescribing the time limit for filing such returns.
*This will come into force once notified by the CBIC.

What is GSTR-7?

GSTR-7 is a return filed by the individual who deducts TDS under GST. GSTR-7 contains details of the TDS deducted, TDS liability payable and paid, TDS refund claimed, etc.

Who can deduct TDS under GST?

As per the GST law, the following individuals/entities can deduct TDS :

• A department or establishment of the Central or state government
• A local authority
• Governmental agencies
• Persons or categories of persons as may be notified by the Central or a state government on the Council’s recommendations

As per the Notification No. 33/2017 – Central Tax, 15th September 2017, the following entities can also deduct TDS:

• An authority, a board, or any other body set up by the Parliament, a State Legislature, or by a government with 51% equity (control) owned by the government
• A society established by the Central or any state government or a local authority and the society registered under the Societies Registration Act, 1860
• Public sector undertakings

The above deductors must deduct TDS where the total value of supply under the contract exceeds Rs.2.5 lakh. The rate for TDS is 2% (CGST 1% + SGST 1%) in case of intrastate supply and 2% (IGST) in case of interstate supplies. However, TDS will not be deducted when the location of the supplier and place of supply is different from the registration place (state) of the recipient.

Why is GSTR-7 important?

GSTR-7 shows the details of TDS deducted, amount of TDS paid and payable, and any refund of TDS claimed. The deductee (the person whose name TDS has been deducted) can claim TDS as Input Tax Credit (ITC) and utilise it to pay the output tax liability.

The details of TDS deducted is available electronically to each of the deductees in PART ‘C’ of Form GSTR-2A after the due date of filing of Form GSTR-7. Also, the certificate for such TDS deducted shall be available in Form GSTR-7A based on the return filed in GSTR-7.

What is the due date of GSTR-7?

The filing of GSTR-7 for a month is due on the 10th of the following month. For instance, the due date of filing GSTR-7 for October is 10th November.

What is the penalty for non-filing of GSTR-7?

If the GST return is not filed on time, then a penalty of Rs.100 under CGST and Rs.100 under SGST shall be levied, and the total will be Rs.200 per day. However, the maximum late fee should not exceed Rs.5,000. There is no late fee on IGST in case of delayed filing. 

Along with late fees, an interest has to be paid at 18% per annum. It has to be calculated on the TDS paid. The period for interest calculation will be from the next day of the due date of filing to the payment date.

How to revise GSTR-7?

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

What are the details required in GSTR-7?

GSTR-7 has a total of eight sections, which are explained below. 

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: The taxpayer’s name will be auto-populated when logging into the common GST portal. Also, if there is any registered person’s trade name, it will get auto-populated.

3. Details of the tax deducted at source: Here, you need to mention the details of the TDS deducted such as GSTIN of the deductee, total amount and TDS amount (central/state/integrated).

4. Changes to details of TDS for 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. Based on this amendment, the TDS certificate (GSTR-7A) will be revised.

5. Tax deduction at source and paid: Here, you need to mention 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 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 the refund of TDS from your electronic cash ledger, you must mention such details 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 filling the return and the payment of TDS along with interest if any.

Once all the particulars are furnished correctly, the taxpayer must sign a declaration regarding the correctness of the information. The deductor can authenticate the return either through a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

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