What Does GSTR-7 Mean?

GSTR-7 is a monthly return that is filed by people who require deducting Tax Deducted at Source (TDS) under the Goods and Services Tax (GST). They need to file the form by the 10th of next month and comprise all the details related to TDS payable, deducted refund, etc.

Who Requires Deducting TDS under GST?

According to the GST law, the entities and persons that require deducting TDS are:

• An establishment or department of the State or Central Government
• A government agency or a local authority
• People/Categories of persons who have been asked by the State or Central Government on the Council’s advice

Notification No. 33/2017 – Central Tax, New Delhi, 15th Sep’ 17 specifies that the below-mentioned entities also require deducting TDS:

• A board, authority, or other body set up by the State Legislature, Parliament, or the government, with 51% equity owned by the government.
• A society set up by the State or Central Government or the Local Authority and the society is listed under the Societies Registration Act, 1860.
• PSUs (Public Sector Undertakings)

All of them require deducting TDS where the overall value of supply under the contract exceeds ₹ 2.5 Lakhs. The TDS rate is 2% ( 1%  SGST + 1% CGST) for intrastate supplies and 2% IGST for interstate supplies. But there will be no TDS deduction if the supplier’s location and place of supply are different from the recipient’s place of registration.

The Importance of GSTR-7

GSTR-7 comprises important details such as deducted TDS, the amount of TDS payable and paid, refunds (if any) of the claimed TDS. The individual on whose name TDS gets deducted (deductee) can claim it as ITC (Input Tax Credit) and use it for paying out the tax liability.

The TDS deduction details are available online to all of the deductees, as mentioned in the GSTR-2A form after the form filling due date. Additionally, the TDS deducted certificate will be accessible in Form GSTR-7A for the deductee as per the filed return in GSTR-7.

When to File GSTR-7

The GSTR-7 is filed for a specific month upon its completion.  The last day for filing the return is prior to the 10th of the following month. For example, if you are filing the GSTR-7 for April 2021 then, you need to file it before the 10th day of May 2021.

Requirements for Filing GSTR-7

To file GSTR-7, one needs to keep the following prerequisites in mind:

• One has to be a registered taxpayer under the GST with PAN-based 15 digit GSTIN.
• Your business’ total turnover should be more than ₹20 lakhs.
• Keep note of details of all the transactions related to tax deductions and payments in the name of your vendors.

What is the GSTR 7 Due Date?

GSTR-7 form filing is due on the tenth day of the following month. For example, the due date of filing of GSTR-7 for September is 10th September.

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

Not filing a GST return on time requires one to pay a penalty of ₹100 under SGST and  ₹100 under CGST. This means one has to pay an overall penalty of ₹200 per day. But the maximum penalty does not exceed ₹5,000. In the case of IGST, there’s no penalty for delayed filing.

Besides a penalty, one also has to pay an interest of 18% p.a. It is calculated based on the TDS that needs to be paid.

Is It Possible to Revise GSTR-7?

Once filed, GSTR-7 cannot be modified or revised. In the case of mistakes, one can make changes in the next month’s GSTR-. For example, if one makes a mistake in September GSTR-7, they can make amendments for the same in October GSTR-7. If not the next month, the changes can also be made in the later months depending on when the error is identified.

Details You Need to Provide in GSTR-7

The procedure of filing GSTR-7 spreads across 8 different sections. These include:

Section 1: Enter GSTIN, Trade Name and Legal Name

• GSTIN – A unique Goods & Services Identification Number that is allotted to every registered taxpayer
• Trade Name – The name of the Deductor’s business (if any)
• Legal Name – The deductor/registered person’s full name

Section 1 and 2: Contain the GSTIN number, legal name and trade name of the deductor

Section 3: Details of the tax deducted at source

This section comprises details of the tax deducted by the eligible deductor at the source. Along with the GSTIN of the deductee,  it contains the TDS and total amount (integrated/state/central tax).

Section 4:  Amendments to Details of Previously Submitted Returns

This section comprises details of any changes or amendments made in the returns submitted in the previous months. One requires filing the original as well as the revised details in section. The TDS certificate is then revised according to the amendments.

Section 5:  Tax Deduction at Source and Paid

Provide (integrated/state/central) tax amount deducted from the deductee and the tax (integrated/state/central) an amount paid to the government.

Section 6: Interest, Penalty Payable and Paid

This section requires you to enter all the details related to the GSTR 7 late fees or interest liable on the TDS amount. You also need to enter the total amount paid with it.

Section 7: Refund claimed from electronic cash ledger

Enter details related to any refunds that you may have claimed from the e-cash ledger on TDS payment.

Section 8: Debit entries for TDS/interest payment  in electronic cash ledger

After filing the return and making the tax payment of the TDS (+Interest), your details will automatically display on the e-cash ledger.

In the end, you need to attach your digital signature to confirm the correctness Deductor of the given information

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Frequently Asked Questions (FAQ’s)