GSTR-7

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

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.

Due Dates of Filing GST Returns

These returns are as per the CGST Act*