For Tax Deducted at Source (TDS) under GST, the deductor needs to file GSTR 7. Read this guide to find out more about what GSTR 7 is and how to file it.
The Goods and Services Tax Return 7 is a return to be filed for TDS. Tax Deduction certificate shall be made available electronically by the deductor to the deductee on the Common Portal in FORM GSTR-7A on the basis of GSTR-7.
GSTR-7 is filed by the registered taxpayers who deduct tax while making payments to vendors/suppliers towards the inward supplies received.
GSTR-7 must contain the details of those transactions where tax was deducted by the deductor at source along with the complete details of his/her suppliers.
As per section 51 of the CGST Act, following persons and establishments are required to deduct TDS:
As per notification no 33/2017 (Central tax) dated 15th September 2017, the following entities or establishments are also required to deduct TDS:
GSTR-7 is important to be filed as it facilitates the reporting and payment of TDS amount deducted due to, which credit of the tax can be provided to the respective supplier.
Once, GSTR-7 has been filed by the taxpayer, all the TDS details are reflected in the Part C of the form 2A of the respective supplier, who can claim the input tax credit of the TDS deducted in his name and the same can be used towards making the payment of the output tax liability.
The GSTR-7 for a particular month can be filed upon the completion of that month. The last day for filing this return is before the 10th of the subsequent month. (E.g.: If you are filing the GSTR-7 for April 2018 then, you have to file it before the 10th of May 2018.)
If the taxpayer fails to file GSTR-7 before the due date, it shall attract a penalty of 200/- per day starting from next day of the due date of filing the return. This penalty is subject to a maximum of Rs. 5,000. Also, interest @18% p.a. will be applicable, calculated by the taxpayer on the tax to be paid.
GSTR-7 contain the details of TDS deducted by the person liable to deduct the tax.
You can view and download the form here.
Most of the headings under this return are auto-populated from the details of the suppliers furnished in Part C of FORM GSTR-2A on the Common Portal after the due date of filing of FORM GSTR-7.
|#||Headings||Details to be furnished|
|1.||GSTIN (Goods and Services Taxpayer Identification Number )||15 digit state-wise PAN number|
|2.||Legal name of the deductor and Trade Name if any||Will be auto-populated when a taxpayer will login to the common GST portal|
|3.||Return Period||Period / month or year of tax to which the Return pertains (for which GSTR-7 is being filed); to be selected from drop-down menu|
|4.||Details of TDS||Deductee needs to furnish the details of :
|5.||Amendments to details of TDS in respect of earlier tax period||Any amendments in respect of earlier tax period will be furnished under this head. Based on this amendment, TDS certificate (GSTR-7A) will get revised.|
|6.||Liability – payable and paid||Under this head, the amount of TDS will get auto-populated based on the above mentioned details. Details appear here are:
|7.||Refund claimed||If any amount has been credited as refund received in the bank account, that amount will get auto-populated here from electronic cash ledger.|
Upon filling up all the sections of the GSTR-7, a tax deductor is required to declare the authenticity of the document and sign it electronically.
Taxpayer must exercise due diligence while filing the GSTR-7 as it can’t be revised in the month in which the return has been filed. However, if any error or omission is encountered, the taxpayer can correct the same in the GSTR 7 of the subsequent months. However, no rectification is allowed after :
For example: error in the GSTR-7 of January was realized in the month of February, so the same can be corrected in the return of subsequent months up to the return of September or the filing of annual return whichever is earlier.