July 16, 2021
GSTR 7 is a monthly statement that is to be provided by all taxpayers who are needed to deduct TDS (Tax deducted at Source ) under GST. GSTR 7 form could furnish the details of TDS returns, TDS deducted, amount of TDS paid and payable and any refund claimed for TDS. The taxpayer whose TDS has been deducted could claim the ITC of the TDS deducted and use it for paying the output tax liability.
TDS deducted details could be accessed electronically by each deductee in form GSTR 2A after the due date for filing GSTR 7 return form. Besides, the certificate for such TDS deducted could be accessed by the deductee in the GSTR 7A form based on the return filed in GSTR 7 Form.
According to the GST law, the following entities are required to deduct TDS and needed to file GSTR 7 under GST.
In case the tax value of supply under a contract concerning the supply of taxable goods or services or both exceeds Rs.2.5 lakhs excluding taxes and cess leviable under GST, 2% TDS is needed to be deducted.
GSTR 7 return form provides the details of deducted TDS, amount of TDS paid and payable, TDS refunds claimed. The deductee would claim for the input credit of deducted TDS and use it for the payment of output tax liability. The deducted TDS details would be accessible by each of the deductees in Part ‘C’ of the GSTR 2A Form after the due date of filing of the GSTR 7 Form. Besides, the certificate would be available for the deductee in GSTR 7A Form based on the return filed in GSTR 7 return form.
The due date for filing GSTR 7 is on the 10th of the following month. For example, the GSTR 7 due date to file for September is 10th October.
Unless the GSTR 7 is filed on time, then the penalty is Rs 100 under CGST and Rs100 under SGST. The total would be 200perday. Rs 5000 is the maximum. If there is delayed filing, no late fee on IGST would be levied.
In addition to the late fee, interest should be paid at 18% per annum. The taxpayer should assess the tax to be paid. The time could be from the next day of the due date of filing to the payment date.
Once GSTR 7 is filed, it cannot be revised. Any mistake in the return could be rectified in the next month’s return. For instance, if the mistake is made in September GSTR 7, it could be rectified in October’s GSTR 7 or in later months if they found any error/omissions.
GSTR 7A form is a system-generated tax deducted at source (TDS) certificate that is produced as deductor provides a return in GSTR 7 form on the GST portal and the deductee approves the details uploaded by the deductor and files his return. This would be available for both deductor and deductee.