How to file GSTR7 for Components of a Valid TDS Return on GST Portal?

GSTR 7 is a return that is to be filed by the taxpayers who are required to deduct tax deducted at source (TDS) under GST. It is a monthly return to be filed in the following month .GSTR 7 contains various details related to

  • TDS deducted,
  • TDS liability that is payable and already paid,
  • TDS refund claimed if any and so on.

Who is required to file GSTR 7?

GSTR 7 is required to be filed by the persons who are required to deduct Tax Deducted at Source (TDS) under GST regime.


Who are required to deduct TDS under GST?

As per GST law following people or entities are required to deduct TDS :

  • A department or establishment of the Central or State Government
  • Local authority
  • Government agencies
  • Persons or categories of persons as may be notified by the Central or a State Government on the recommendations of the Council.

The following entities also need to deduct TDS as per Notification No. 33/2017 – Central Tax, 15th September 2017

  • 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 owned by the government
  • 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
  • Public sector undertakings

Due date of filing GSTR 7

GSTR 7 is filed every month. The due date for filing of GSTR 7 for a month is on the 10th of the following month.

For example:

The date of filing GSTR 7 for the month of September is 10th October.


Extension of time limit for October 2018 to July 2019

Notification- 26/2019 CT dated 28/91019 states that GSTR 7 return for October 2018 to July 2019 can be filed up to 31 October 2019.


When do the above-mentioned taxpayers need to pay TDS?

The above-mentioned taxpayers are required to TDS when;
  • The total value of supply under the contract exceeds Rs 2.5 Lakh. The rate for such TDS in case of intrastate supply is 2% (CGST 1% + SGST 1%) and in the case of interstate supplies, it is 2 % (IGST).
  • The contract of purchase of goods or services contains both taxable and exempt supplies.
  • The place of supply, location of supplier and recipient should be in the same state or union territory. This case comes under intra state supplies and TD @ 1% each for CGST and SGST is deducted.
  • If location is in one state and place of supply is in another state and recipient is registered in either of the state , it is a case of inter state supplies and TDS is deducted @ 2 % IGST.

NOTE: As per the 22nd GST Council meeting on 6th October 2017, the provisions of TDS was put on hold. It has came into force and been commenced now.


Major conditions for filing GSTR-7

To file the Form GSTR-7 one has to abide by various conditions:

  • The taxpayer must be registered under the GST and should have a unique 15 digit PAN based GSTIN.
  • The aggregate turnover of the business of the individual should be more than 20 lakh rupees.
  • One should furnish all the details of transactions regarding tax deduction and tax paid on behalf of your vendors .

Procedure to prepare GSTR 7 return

The numerous steps are to be followed by the taxpayer for filing GSTR 7
  • Add table-wise details in the Worksheet.
  • Generate JSON File to upload.
  • Upload the generated GSTR 7 JSON File on GST Portal.
  • Preview Form GSTR-7 on the GST Portal.
  • Payment of tax.
  • File Form GSTR-7 with DSC/EVC.
  • View debit details or entries in electronic cash ledger for tax payment.

Importance of GSTR-7

GSTR 7 shows all the details regarding the TDS of a taxpayer. Thus this is a very important GSTR. Some of the major importance are as follows:

  • The details regarding TDS deducted, a refund of TDS that can be claimed, TDS payable, TDS to be paid is stated in this GSTR.
  • The deductee can claim the input credit of the TDS deducted and can utilize the payment of output tax liability through this GSTR.
  • After filing this form, the details will be electronically available in Part C of the form GSTR 2A.
  • Even the certificate for such TDS deducted can be received after filing GSTR 7.

Details to be provided in GSTR-7

GSTR 7 has a total of 8 sections in it.

Following are the details to be provided in the GSTR-7 form:

  • GSTIN: Each taxpayer has been allotted with a state-wise PAN-based 15-digit Goods and Services Tax Identification Number (GSTIN). This GSTIN will be auto-populated at the time of filing the return.
  • The legal name of the Deductor: As soon as the taxpayer will log in to the GST portal, the name of the taxpayer will be auto-populated. Also, any trade name of the registered person will also get auto-populated.
  • Details of TDS: Here individual needs to furnish all the details related to the TDS deducted such as GSTIN of the deductee, total amount and TDS amount (CGST or SGST or IGST)
  • Amendments to details of TDS in respect of any earlier tax period: Any rectification required in the data that was submitted in the return of previous months can be done here. This can be done by filling the original and revised details in this section. The TDS certificate that is Form GSTR-7A, will get revised with the help of these amendments.
  • TDS paid: Here you need to fill the details of the TDS deducted from the deductee and the tax amount paid to the government.
  • Interest, Late Fees payable and paid: If in any case there are any interest fees or late fees applicable on the TDS amount of the taxpayer, the details must be mentioned here. This includes the details of such interest and late fees payable as well as the amount paid till date.
  • Refund claimed from electronic cash ledger: If the taxpayer claims the refund of TDS from the electronic cash ledger, the details of the same must be mentioned in this section. The bank details should also be provided where the refund for TDS has to be credited.
  • Debit entries in electronic cash ledger for TDS or interest payment: The details in this section are auto-populated, as soon as the taxpayer finishes filing the returns and the payment of TDS along with interest if any is paid.

Penalty for not filing GSTR 7 on time

For the late filing of GST return the taxpayer is liable for a penalty of Rs 100 under CGST & Rs 100 under SGST. The total penalty amount will be Rs. 200 per day. The maximum of Rs. 5,000 can be changed from the taxpayer. There is no late fee on IGST in case of late filing of return.

Along with the late fees, interest is also charged at 18% per annum. The interest has to be calculated by the taxpayer on the tax to be paid. The time period will be from the next day of the due date of filing to the date when the payment is done.


Revision of GSTR-7

When once GSTR 7 is filed it cannot be revised. If any mistake is made in the return, it has to be corrected in the next month’s return.

For instance, if a mistake is made in the GSTR 7 of the month of September, the rectification for the same can be made in GSTR 7 of October or in later months when the error or mistake is identified.


Conclusion

For every taxpayer who pays TDS or whose TDS is deducted, the form GSTR 7 is very important. GSTR 7 is essential as it contains all the major details of TDS deducted, TDS paid, or payable. After filing GSTR 7, it becomes easy for the taxpayer to claim their TDS.

Frequently Asked Questions (FAQs)

Q- Is it compulsory to file GSTR 7?

The GSTR-7 form is a monthly return that is to be furnished by all taxable persons who are required to deduct TDS under GST.


Q- How GSTR 7 certificate can be downloaded?

GSTR 7 certificate can be downloaded by following these steps: login into the GST portal -> entering the details -> clicking on TDS certificate -> entering the details such as financial year, GSTIN and clicking on search and then download.


Q- What is the major importance of the form GSTR 7?

The Tax Deduction Certificate is made available to the deductee on the basis of the form GSTR 7.


Q- What happens if the taxpayer delays filing GSTR 7?

The late fee is charged for not filing GSTR-7 on time. The fees charged is Rs. 200 per day of the delay (Rs 100 under CGST & Rs 100 under SGST).

CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.