filing gstr7

All you Need to Know about GSTR-7

Last Update Date : April 27, 2019
Estimated Read Time: 4 min

filing gstr7

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.

What is Form GSTR-7?

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.

Who Can File 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.

Who is Required to Deduct TDS?

As per section 51 of the CGST Act, following persons and establishments are required to deduct TDS:

  1. Governmental Agencies
  2. Local Authorities
  3. A department or an establishment of the Central or State Government
  4. Persons or category of persons as may be notified on the recommendation of the council by the state or central government.

As per notification no 33/2017 (Central tax) dated 15th September 2017, the following entities or establishments are also required to deduct TDS:

  1. Public sector undertakings
  2. A society established by the Central Govt or State Govt or a local authority
  3. An authority or board set up by the parliament or the Central or State Government with equity holding of 51% or more.

Why is GTSR-7 Important?

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.

When to File GSTR-7?

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.)

Penalty For Not Filing GSTR-7?

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.

What Details are Included in GSTR-7?

GSTR-7 contain the details of TDS deducted by the person liable to deduct the tax.

Proforma of GSTR-7

You can view and download the form here.

Headings that appear under GSTR-7 and their significance

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 :

  • GSTIN of deductee,
  • amount paid to deductee on which tax is paid
  • amount of TDS
  • Based on the above details, TDS on IGST, CGST and SGST gets computed.
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:

  • Amount of Tax Deducted
  • Amount of Tax Paid
  • Interest on account of TDS
  • Fees for late filing of GSTR-7
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.

Can GSTR-7 be Revised?

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 :

  • Furnishing the return for the month of September following the end of the financial year to which the details pertain or
  • Furnishing the relevant annual return or whichever is earlier.

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.

For assistance with filing  your GSTR 7 and all other GST related queries including, GST Registration, Compliance and Reconciliation, enlist the aid of the experts at H&R Block India.

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CA Chetan Shinde
CA Chetan Shinde
Chetan is the Lead Tax Advisor at H&R Block (India) with an experience of almost half a decade in audit and taxation. His professional areas of interest are GST advisory and statutory audit. Apart from taxation, he is passionate about social causes and works extensively towards rural school development and literacy.