GSTR 7 return form is mandatory for taxpayers who are required to deduct TDS (Tax Deducted at Source) under GST. GSTR 7 is a return form under GST for all the taxpayers who account for all the tax deducted at the source. The GSTR 7 due date is the 10th of every month in a particular tax period. The last date to file Goods and Services Tax Returns 7 ( GSTR 7 ) for January 2024 is Approaching. The due date to file the GSTR 7 is 10th February 2024. The Central Board of Indirect Taxes and Customs ( CBIC ) has remained the same via its social channels. GSTR 7 is a return form particularly designed for assesses who need to deduct TDS (Tax Deducted at Source) under GST.
GSTR-7 can be filed online through the GST portal ( www.gst.gov.in ) using appropriate login credentials. Assesses are suggested to use the portal’s user manual and guidelines for smooth filing. Those that deduct tax at source or TDS under the Goods and Services Tax must submit a GSTR 7 monthly return (GST). By the 10th of the next month, every GST-registered person who deducts TDS under GST must submit Form GSTR 7. Details on TDS deducted, TDS payable, TDS refund, etc. are included in the form.
What Do You Mean by The Term GSTR 7?
Section 51 of the Central Goods and Services Tax (CGST) Act requires some individuals or entities to deduct tax at source under the GST regime. GSTR 7 is a monthly return that these persons are expected to file. Each month, the form must be filed by the 10th of the following month.
The information on GSTR 7 includes the amount of TDS deducted, the amount of TDS paid and due, and any TDS refund sought. The GSTR 7 return can be filed both online and offline.
Major Components of GSTR-7:
- Information about the deductor ( i.e., the entity deducting TDS ).
- Information about the deductee ( i.e., the supplier from whom TDS is deducted ).
- Invoice-wise details of TDS deducted.
- Precise action for any errors in previous returns, if applicable.
- Additional related data as per GST norms.
What is the Importance of GSTR-7?
GSTR-7 specifies the TDS deducted, the amount of TDS paid and due, and any TDS refund sought. TDS can be claimed as an Input Tax Credit (ITC) by the deductee (the person whose name TDS has been deducted) and used to settle the output tax liability.
After the due date for submitting Form GSTR-7, the details of the TDS deducted are available electronically to each deductee in PART ‘C’ of Form GSTR-2A. In addition, the certificate for such TDS deducted will be accessible in Form GSTR 7A based on the GSTR 7 return.
Conditions for Filing GSTR 7
A few fundamental requirements must be satisfied before filing the GSTR 7 return. Please have a look at them down below.
Under the GST regime, you must be a registered taxpayer.
A valid 15-digit GSTIN is required.
Your total company revenue should exceed Rs. 20 lakhs.
You must keep track of all transactions in which you deduct and pay taxes on behalf of your vendors.
Who Can Deduct TDS under GST?
The below-specified individuals/entities can deduct TDS under the GST law-
- A department or establishment of the Central or state government
- A local authority
- Governmental agencies
- The Central or state government may notify individuals or categories of persons on the suggestions of the Council.
According to Notification No. 33/2017 – Central Tax, 15th September 2017, the below-specified entities can also deduct TDS:
- An authority, a board, or any other body set up by the Parliament, a State Legislature, or a government with 51% equity (control) owned via the government
- Under the Societies Registration Act, of 1860, a society established by the Central or any state government or a local authority and the society registered
- Public sector undertakings
The aforesaid deductors should deduct TDS in which the total supply value beneath the contract is more than Rs 2.5 lakh. In the case of intrastate supply, the TDS rate stands at 2% (CGST 1% + SGST 1%) while for interstate supplies it is 2% (IGST). TDS will not be deducted, however, if the supplier’s location and place of supply differ from the recipient’s registration place (state).
What Information is Needed in GSTR-7?
GSTR-7 is divided into eight parts, which are detailed further below.
1. Furnish GSTIN: A state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN) would be allotted to each assessee. During the time of filing the return the GSTIN of the assessee shall be auto-populated.
2. Legal name of the deductor: The name of the assessee shall be auto-populated at the time of logging into the common GST portal. Moreover, any registered person’s trade name will be auto-populated if any.
3. Tax deducted at source information: You must specify the information of TDS deducted like GSTIN of the deductee, total amount, and TDS amount (central/state/integrated).
4. Revisions to details of TDS for any earlier tax period: Any corrections to the data supplied in prior months’ returns can be made here by filling out the original and changed details. The TDS certificate (GSTR-7A) will be changed as a result of this adjustment.
5. Tax deduction at source and paid: In this, you are required to specify 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: When there would be any interest or late fees subjected to be applied on the TDS amount you should specify the information of these interest and late fees liable to be paid including the amount that has been paid to date.
7. Refund claimed from electronic cash ledger: You must include these facts in this area if you wish to get a TDS refund from your electronic cash ledger. Moreover, you must include the bank account details to which the TDS refund should be credited.
8. Debit entries in the electronic cash ledger for TDS/interest payment [to be populated after payment of tax and submissions of return]: Once you have completed filling out the return and paying the TDS and, if applicable, interest, the entries in the section are automatically filled in.
Once all the information is provided accurately, the taxpayer must sign a statement attesting to the accuracy of the data. A Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC) can be used by the deductor to verify the authenticity of the return.
Due Date for filing GSTR 7 Return February 2024
|10th March 2024
|10th February 2024
|10th January 2024
|10th December 2023
|10th November 2023
|10th October 2023
|10th September 2023
|10th August 2023
|10th July 2023
|10th June 2023
|10th May 2023
|10th April 2023
|10th March 2023
GSTR 7 Late Fees and Penalty
If you submit your GSTR 7 beyond the deadline, the following penalties will be levied daily:
- Rs. 100 under the Central Goods and Services Tax (CGST)
- Rs. 100 under the State Goods and Services Tax (SGST)
The same implies that the GSTR 7 late fees come up to Rs. 200 per day. The maximum limit, but has been capped at Rs. 5,000 under CGST and Rs. 5,000 under SGST.
Moreover, for the GSTR 7 late fees, you will need to pay interest at 18% per annum on the TDS paid. The same interest shall be imposed from the day following the due date to the actual date of filing the payment.
- “Extension of due date for furnishing Form GSTR-7 for taxpayers having principal place of business is located in erstwhile State of Jammu and Kashmir for July 2019 to October 2019 and November 2019 to February 2020”. Read Notification
- “39th GST Council Meeting – “Extension of due dates for FORM GSTR-7 for July 2019 to January 2020 till 24th March 2020 for registered persons having principal place of business in the Union territory of Ladakh.” Read the Official Press Release
- “The due date of filing form GSTR 7 for selected districts of Assam, Manipur or Tripura has extended till 25th of December” (Read Notification)
- “Seeks to extend the due date till 20th December for furnishing of return in FORM GSTR-7 for registered persons in Jammu and Kashmir for the months of July 2019 to October 2019.” Read Notification