How to file Form GSTR-7?

GSTR-7 - Eligibility, due date, filing

What is Form GSTR-7?

GSTR-7 is a monthly return form filed by all taxable persons who are required to deduct TDS (Tax Deducted at Source)under GST ie, the deductor needs to file this GSTR-7.

GSTR 7 should incorporate the following details:

  • Deducted TDS
  • TDS liability payable / paid
  • TDS refund claimed if any
  • Interest, late fees etc payable / paid.

The deductor deducts TDS  at the time of crediting the payment to the supplier/ the deductee. The supplier’s Form GSTR-2 includes these details.

The deductor files a return in Form GSTR-7 and pays the tax to the government within 10 days after the month when he had made the deduction. While the deductee includes the tax credit into his electronic cash ledger. Thus he can use it to make payments for output tax or other liability using this tax credit.

GSTR-7 provides details like TDS deducted, TDS payable etc for a specific month. So, by Part C of Form GSTR-2A, these pieces of information are accessible to the deductees/ suppliers electronically via the portal.

Who can file Form GSTR-7?

As per the GST law, the following need to deduct TDS and file GSTR-7.

  • A department / an establishment of the Central or the State government.
  • Local Authorities.
  • Government agencies.
  • Persons or category of persons as may be notified on the recommendations of the GST Council.
  • Any authority, board, or other body set up by a government or a legislature, with 51% equity owned by the government.
  • A society founded by the federal government, a state government, a local authority, and registered under the Societies Registration Act.
  • Public Sector Undertakings.

GSTR-7 Due date

GSTR-7 is due on every 10th of the following month. However, as per the 22nd GST council meeting on 6th October 2017, the government can either extend or change the due date by an official notification.

Pre-conditions of Filing Form GSTR-7

Form GSTR-7 must meet the following conditions:

  • The Tax Deductor should be registered as a Tax Deductor and have a valid/active GSTIN.
  • The tax deductor must have a valid password and user ID.
  • The Tax Deductor should have a valid & non-expired/revoked digital signature (DSC) when filing his/her return via DSC.
  • Tax Deductor has paid or credited the amount to supplier.

How to file GSTR-7?

There are a total of 8 tables in the GSTR 7 Form that provide different details regarding the tax deducted at source. Let’s look at the filing procedure in detail : 

Tables 1 and 2 contain the GSTIN, full name, and business name of the deductor.

  • GSTIN: The unique GST Identification Number given to each registered taxpayer.
  • Legal name of the deductor: Name of registered individual making tax deductions
  • Trade name: Name of the Deductor’s Business, if Any

Table 3: Details of the tax deducted at source

  • The table must show the details of the tax deducted at source by the qualified deductor.This inculdues GSTIN of the deductee, the total amount, and the TDS amount (integrated, central, and state tax). 

Table 4:  Amendments to details of tax deducted at source in respect of any earlier tax period

  • It will include information about changes made to the TDS information that was previously provided for earlier tax months.

Table 5:  Tax deduction at source and paid

  • Give information about the integrated, central, and state taxes deducted from the deductee and the integrated, central, and state taxes paid to the government.

Table 6: Interest, late Fee payable and paid

Provide the details of the interest and/or late fee, as well as the details of the amount paid, in this table if they are applicable.

Table 7: Refund claimed from electronic cash ledger

  • Provide the details of any refunds you may have received from your electronic cash ledger for TDS payments.

Table 8: Debit entries in electronic cash ledger for TDS/interest payment [to be populated after payment of tax and submissions of return]

As soon as you file the return and pay the tax deducted at source (TDS + interest) to the government, your electronic cash ledger will automatically display the details.

Below the bottom, The user must digitally sign the page at the bottom to verify the accuracy of the data provided.

Penalty for non-filing of GSTR-7

Non-furnishing of GST returns on time before the due date will lead to a penalty of Rs 100 under CGST and Rs 100 under SGST. So the total will be Rs.200 per day. The maximum penalty levied will be Rs. 5000. There is no late fee in case of delayed filing on IGST.

Along with the late fee, interest has to be paid at 18% per annum. The rate of interest will be calculated from the next day of the due date of filing to the date of payment.

How to revise GSTR-7?

GST portal does not allow revisions to GSTR-7 in the same month as filing, but mistakes can be corrected when filing the form a month later. It is not possible to make corrections after the return for September following the end of the financial year, or after the annual return.

Details required in GSTR-7

The Form GSTR-7 contains the information:

  • Name of the Deductor
  • Return Period
  • TDS Details
  • Liability Payable and Paid
  • Refund Claimed

What happens after Form GSTR-7 is filed?

After the filing of Form GSTR-7:

  • ARN is produced after the Form GSTR-7 Return is successfully filed
  • The applicant receives both an SMS and an email at his registered email address and mobile.

We have reached the conclusion of this post on how to file Form GSTR-7. Feel free to share your views and opinions with us in the comment section below.