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What is GSTR 7?

July 16, 2021

What Is GSTR 7

What is GSTR 7?

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.

Who could get deducted TDS under GST?

According to the GST law, the following entities are required to deduct TDS and needed to file GSTR 7 under GST.

  • Central or state government departments or establishments.
  • Local authority.
  • Category or persons notified on the recommendation on the GST council.
  • A board, authority, or any other body that has been set up by Parliament or state legislature or by a government, with 51% equity owned by the government.
  • Societies by central or state governments or local authorities registered under the Societies Registration Act.
  • Public Sector Undertakings
  • Governmental agencies.

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. 

Prerequisites For Filing GSTR 7

  • The taxpayer must be registered under the GST with a 15 digit PAN-based GSTIN.
  • Above 20 lakh turnover for the business.
  • The taxpayer has to capture the details of all transactions as you deduct tax and pay it for your vendor while providing them Input Tax Credit.

Why is GSTR 7 Significant?

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.

GSTR 7 Due Date

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.

What would be the Penalty unless GSTR 7 is not Filed on Time?

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.

How could GSTR 7 be Revised?

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.

What is GSTR 7A?

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.


Read More:

GSTR 7 Format 




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