How to File GSTR-7 on GST Portal?

The Goods and Services Tax (GST) system in India mandates the filing of specific returns by businesses and tax deductors, with GSTR-7 being one such crucial return. This guide will navigate you through the process and intricacies of how to file GSTR-7 on the GST portal.

Who is Required to File GSTR-7?

GSTR-7 is primarily a return to be filed by those persons who deduct Tax at Source (TDS) under GST. This typically includes:

• Government departments or establishments
• Local authorities
• Governmental agencies
• Entities specified by the central or state governments based on the GST Council’s recommendations

Certain public sector undertakings, societies established by the central or state governments, and bodies set up by the Parliament or state legislatures with significant government equity may also fall under this bracket. 

It's essential to note that these entities are obligated to deduct tax at source from any payment made to a supplier of taxable goods or services if the total value of such a transaction exceeds Rs. 2.5 Lakhs. This ensures compliance and proper tax collection at every stage of a transaction. The deductors must deduct TDS at 2% (CGST 1% + SGST 1%) in case of intrastate supply, or 2% (IGST) in case of interstate supplies. 

However, it is important to note that 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.

Step-by-Step Guide to Filing GSTR-7 on the GST Portal

The following are the steps to file Form GSTR-7 on the GST Portal:

I. Begin and Progress to the GSTR-7 Form Page

1. Portal Access & Login

Initiate filing by visiting the official GST website at www.gst.gov.in. Once there, use your valid user credentials to log in. After successfully logging in, navigate by selecting ‘Services’ > ‘Returns’ > ‘Returns Dashboard’.

2. Selection of the Filing Period

Upon reaching the 'File Returns' interface, you'll be prompted to select the 'Financial Year' and the specific 'Return Filing Period' (usually the month) you wish to file for. After making your selections, click on the 'SEARCH' button.

3. Navigating to the GSTR-7 Form

As the updated 'File Returns' section appears, look for the GSTR-7 tile. Next, click on the 'PREPARE ONLINE' button.

Note: A brief yet essential message may pop up for your attention. Ensure you go through this information.

4. Form Displayed

After the above steps, you will be directed to the main 'GSTR-7 - Return for Tax Deducted at Source' page, marking the beginning of your form-filling process.

II. Inputting Details Across Different Tiles

5(a) Inputting Information in ‘Table 3. Details of the tax deducted at source’

5.1. Accessing the TDS Details Section

Begin by selecting the ‘3. Details of the tax deducted at source’ tile. This is where you input specifics about the tax deducted.

5.2. Adding New Entries

Select the ‘ADD’ button to start entering data.

5.3. Specifying the Deductee's GSTIN

In the provided space labelled 'GSTIN of Deductee', input the GSTIN associated with the deductee.

5.4. Entering Payment Details: Input the total amount that was paid to the deductee, from which tax was deducted.

5.5 (a) Understanding Tax Breakdown: If the state codes of the deductor and deductee differ, you'll need to fill in details under Integrated Tax.

Clarification: Different GSTIN for supplier and Place of supply (POS) means that the TDS will be IGST. If they share the same GSTIN, TDS applies as CGST/SGST. If the supplier's state and POS match, but the deductor resides in a different state, no TDS deduction is required.

5.5 (b) Identifying Same State Code Scenario

If both the deductor and deductee share the same state code, the GST portal lets you input all three taxes: IGST, CGST, and SGST.

Note: If both parties are situated in an SEZ, IGST applies irrespective of the place of supply.

5.6. Saving the Information

After ensuring all details are correctly inputted, click on the ‘SAVE’ button.

5.7. Confirmation and Additional Entries

A notification confirms successful TDS detail addition. Remember to input separate TDS details for each deductee.

Tip: Customise the number of displayed records using the dropdown menu. There's also a search functionality for specific GSTIN or deductee names.

5.8. Editing or Deleting Added Information: Within the 'Actions' column, there are options to modify or remove details if required. To move back to the main GSTR-7 Dashboard, click on the ‘BACK TO GSTR-7 Dashboard’ button.

5.9. Viewing Updated Dashboard

Once redirected to the GSTR-7 Dashboard, the ‘3. Details of the tax deducted at source’ box will showcase the total number of TDS entries added, the total tax amount, and the total sum paid to the deductee.

5(b) Accessing the Amendments Section

Begin by clicking on the ‘4. Amendments to TDS Details’ box. This will allow you to revise TDS details from previous tax periods and modify any TDS details that the deductee has rejected. 

5.2 (a) Using the 'Uploaded By Deductor' Tab:

5.2. Navigating the Tab

This section lets you amend transactions from prior tax periods that were uploaded by the Deductor. If the deductee hasn't taken action, the deductor can amend transactions under the ‘Uploaded by deductor’ tab.

Points to Remember:

• Any modifications to TDS details that were previously entered in Table 3 in an earlier return should now be declared in Table 4.
• No amendments can be made after the deductee has accepted the TDS details.
• Details rejected by the deductee can be found in the ‘Rejected by Deductee’ tab in Table 4.
• The original tax period, financial year, and the deductee’s original GSTIN are non-editable. However, the deductor can amend the deductee’s GSTIN, the revised amount, and the tax columns.

5.3. Making the Amendments

Select the financial year and month from the dropdown. In the GSTIN field, input the GSTIN of the previous tax period's deductee that needs revision. Click on the ‘AMEND TDS DETAILS’ button, make the necessary changes, and click on ‘SAVE’.

5.4. Confirmation and Return to Dashboard

A notification will confirm the successful addition of TDS amendment details. Options to modify or remove the details are available. To navigate back, click on the ‘BACK TO GSTR-7 DASHBOARD’ button.

Note: You can scroll to the right to see further information.

5.5. Overview on Dashboard

After redirecting to the GSTR-7 Dashboard, the ‘4. Amendments to the TDS Details’ tile in Form GSTR-7 showcases TDS amendment details and their associated values.

Note: The amended TDS details will be available for the supplier to accept or reject after the deductor files Form GSTR-7.

5.2 (b) Addressing Rejections by the Deductee 

If any TDS credit entries face rejection from the deductee, the system automatically pushes these entries into Table 4 of Form GSTR-7 during the next tax period, specifically under the 'Rejected by Deductee' tab. It's crucial for the TDS deductor to address and amend these entries before proceeding to file Form GSTR-7.

5.2. Navigating to the Relevant Tab

To begin the amendment process, the user will need to select the ‘Rejected By Deductee’ tab under ‘4.Amendments to TDS Details’.

5.3. Editing Rejected Entries

Select the ‘EDIT’ button and make the necessary changes. Remember, only the revised details can be edited. The original details remain unchanged.

5.4. Making Edits in TDS Details

Here, the deductor can modify the GSTIN of the deductee, the revised amount paid, as well as all relevant tax columns. After ensuring the accuracy of the changes, proceed by clicking on the ‘SAVE’ button.

5.5.Navigating Back to the Main Dashboard:

Post-editing, the status updates to ‘modified’. To revert to the main screen, click on the ‘BACK TO GSTR-7 DASHBOARD’ button.

Note: If you wish to see specific records, use the ‘Records to view per page’ drop-down menu. Entries can be located using the GSTIN or Trade/Legal name of the deductee.

5.6. Overview of Updated TDS Details

Upon returning to the GSTR-7 Dashboard page, you'll notice that the ‘4. Amendments to TDS Details’ tile now reflects updates, showing both added and modified TDS entries. It will also display the difference between the original and updated amounts.

Note: After the GSTR-7 form is finalised and submitted, these edited details will be accessible to the deductee (or supplier), who can either accept or reject them.

Similar procedures can be followed for editing other records in the GSTR-7 form.

III. Payment of Tax 

6. Computing the Liability

Begin by clicking on the ‘COMPUTE LIABILITY’ button. This will help in the calculation of your tax liability and any interest that might be applicable.

7. Confirmation Notification

Once your request is submitted, you'll see a message at the top of your screen saying that the 'Compute liabilities request' is now received. To check on its status, hit the Refresh button after a while.

8. Filing with Tax Payment Details

When the status for Form GSTR-7 indicates ‘Ready to File’, both the ‘5 & 6. Payment of Tax’ tile and the ‘PROCEED TO FILE’ button become active. At this stage, you can either click on the designated tile or directly on the ‘PROCEED TO FILE’ button.

Note 1: For details auto-populated in table 4 under the 'rejected by deductee' tab, when revising these records, interest will only apply to the increased tax amount if there's any hike in tax liability.

Note 2: When opting for offline filing of Form GSTR-7 and the uploaded JSON file contains errors, a link to view the errors will be displayed for your reference.

Note 3: Post clicking the link, an error report will be displayed. You can view the specific error message and follow the on-screen instructions to proceed with the filing process seamlessly.

9.1. Checking Available Cash Balance

The portal will showcase the current cash balance available in the electronic cash ledger. This gives a clear perspective on your available funds for tax payment.

Important Points to Remember:

• Only cash can be used to clear liabilities.
• The 'Create challan' button becomes active only if the Electronic Cash Ledger does not have sufficient cash.
• The fields for Declaration and Authorised Signatory are enabled only when there is an adequate cash balance to offset the existing liabilities.

For a comprehensive understanding of the payment processes, visit this link to access the FAQs and User Manual on Making Payments.

Note: The ‘DOWNLOAD GSTR-7 DETAILS (EXCEL)’ button allows you to get an Excel format of the summary page. Alternatively, you can click the ‘PREVIEW DRAFT GSTR-7’ button to review the Form GSTR-7 summary page.

IV. Filing Form GSTR-7 using DSC or EVC

10. Form Declaration and Signature Selection

Begin by selecting the Declaration checkbox. From the provided drop-down list, select the Authorised Signatory. Then, click on the ‘FILE GSTR-7’ button.

11. Confirmation Prompt

A prompt will appear for final confirmation. Click the ‘YES’ button to continue.

12. Choosing the Filing Method

Now, you will be directed to the Submit Application page. Here, you have the option to file using either DSC (Digital Signature Certificate) or EVC (Electronic Verification Code).

12.1. Filing with DSC:

a. A window will pop up displaying available certificates. Choose the desired certificate and click on the SIGN button.

12.2. Filing with EVC:

a. An OTP will be dispatched to the email and mobile number of the Authorised Signatory that's registered on the GST Portal. Input this OTP and then click on the ‘VALIDATE OTP’ button to proceed.

13. Completion of Filing

Upon successful validation, a message will be shown confirming the successful filing of your GSTR-7 form. An Application Reference Number (ARN) will also be provided. The status of your GSTR-7 return will now reflect as ‘Filed’. To exit and go back to the dashboard, simply click on the ‘BACK’ button.

V. Checking Debit Entries in the Electronic Cash Ledger for Tax Payment

14. Accessing the Debit Entries

To view the specific reference ID associated with the amount debited from the electronic cash ledger, click on the ‘Debit entries in the electronic cash ledger for the TDS/interest payment’ tile.

15. Viewing Ledger Entries

The screen will display the entries made in the Electronic Cash Ledger for tax payment. Once you have reviewed the details, press the ‘BACK TO GSTR-7 DASHBOARD’ button to return to the main dashboard.

VI. Downloading the Filed Return

16. Downloading Options

For a digital copy of your filed return, simply click on the ‘DOWNLOAD FILED GSTR-7’ button. If you prefer to have the details in a more accessible format, there's also an option to download the field details in an Excel format. To do this, click the ‘DOWNLOAD GSTR-7 DETAILS (EXCEL)’ button.

17. Notation on the Downloaded File

Upon downloading, the generated PDF file will carry a watermark indicating it as the final Form GSTR-7.

It's always prudent to keep a digital copy of your filings for reference and documentation. For any further clarifications or deeper dives into how to file a GSTR-7 return or other GST-related topics, don't hesitate to explore articles on ClearTax.in.