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 GSTR-7 is a monthly return to be filed by the persons required to deduct TDS under the GST.

In this article, we discuss the following topics in detail:
1.      What is GSTR 7?
2.      Who are required to deduct TDS under GST?
3.      Why is GSTR 7 important?
4.      When is GSTR 7 due?
5.      What is the penalty for not filing GSTR 7 on time?
6.      How to revise GSTR 7?
7.      Details to be provided in GSTR-7

1. What is GSTR-7?

GSTR 7 is a return to be filed by the persons who is required to deduct TDS (Tax deducted at source) under GST. GSTR 7 contains the details of TDS deducted, TDS liability payable and paid, TDS refund claimed if any etc.

2. Who are required to deduct TDS under GST?

As per GST law following people/entities need to deduct TDS:

1.      A department or establishment of the Central or State Government, or

2.      Local authority, or

3.      Governmental agencies, or

4.      Persons or category of persons as may be notified, by the Central or a State Government on the recommendations of the Council.

As per Notification No. 33/2017 – Central Tax, 15th September 2017

The following entities also need to deduct TDS-

  1. 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
  2. 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
  3. Public sector undertakings

The above deductor are required to TDS where the total value of supply under the contract exceeds Rs 2.5 Lakhs. The rate for TDS is 2% (CGST 1% + SGST 1%) in case of intra state supply and 2 % (IGST) in case of interstate supplies.

However, the 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.

NOTE: As per the 22nd GST Council meeting on 6th October 2017, the provisions of TDS has been put on hold and will come into force later.

3. Why is GSTR-7 important?

GSTR 7 shows the details of TDS deducted, amount of TDS paid and payable, any refund of TDS claimed. 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 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 made available to the deductee in Form GSTR 7A on the basis of return filed in GSTR 7.

4. When is GSTR 7 due?

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

5. What is the penalty for not filing GSTR 7 on time?

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.

6. How to revise GSTR-7?

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.

7. Details to be provided in GSTR-7

GSTR 8 has total of 8 sections.

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 common GST Portal. Also if there is any trade name of the registered person, then it will also get auto populated.

GSTR-7 1

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.)

GSTR-7 2

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.

GSTR-7 3

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.

GSTR-7 4

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.

GSTR-7 5

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.

GSTR-7 6

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.

GSTR-7 7

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.

To know more about the different types of returns, deadlines and the frequency of filing, read our article on GST Returns.

Also read our guides on How to file GSTR 1 on Government Portal and how to file GSTR 1 from Tally ERP 9 Release 6.

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