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GSTR-7: Return For Tax Deducted At Source
Form GSTR-7 emerges as a critical filing requirement for tax deductors under GST. This form is important for seamless tax operations of several businesses and entities by allowing them to navigate through the intricacies of Tax Deducted at Source (TDS) in GST. This article breaks down the Form GSTR-7, covering due dates, format, applicability, late fees, and filing process.
GSTR-7
Form GSTR-7 is a monthly return that must be filed by the tax deductors who deducts TDS under GST. This form provides the details of the TDS transactions and facilitates the easy claim of TDS credit for the deductees. Understanding Form GSTR-7 is very important for accurate compliance under GST and ensuring smooth claiming of TDS credit in GST.
Who should File Form GSTR-7?
Form GSTR-7 should be filed by all registered taxpayers who should deduct TDS under GST. This includes Government departments, authorities, and certain notified entities who make payment to the suppliers for interstate or intrastate purchases.
Eligibility and Rules for Filing Form GSTR-7
Form GSTR-7 is specifically for the TDS deductors registered under the GST framework. The eligibility criteria and rules for filing Form GSTR-7 are as follows:
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Tax Deductors:
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Tax Deductors are entities or individuals required to deduct TDS under GST law. This includes government departments, establishments, or agencies, and certain notified entities, who are making contractual payments in excess of the threshold limit decided by the GST Council.
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GST Registered Individuals/Entities:
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The tax-deductors registered under GST are eligible to file Form GSTR-7. The registration is different from the regular GST registration and is specifically obtained by those entities who are required to deduct TDS.
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Rules for Filing Form GSTR-7:
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Monthly Filing: Form GSTR-7 is a monthly return that must be filed by the 10th of the following month in which the TDS is deducted.
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TDS Deduction and Deposit: The deducted TDS must be deposited with the Government before filing Form GSTR-7.
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Accuracy of Information: The tax deductor must ensure that the information reported in Form GSTR-7, including GSTIN details of suppliers, so that TDS credit can be allocated properly to the suppliers.
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Sections in Form GSTR-7
Form GSTR-7 contains several sections designed to accumulate information pertaining to TDS transactions for a specific month. Following are the sections or content in Form GSTR-7:
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GSTIN: The GST Identification Number of the tax deductor should be provided.
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Legal Name of the Deductor: The legal name of the TDS deductor as per GST registration should be provided.
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TDS Details: Under this section the information on TDS deducted on payments made to the suppliers should be provided. It should include details like: supplier’s GSTIN, invoice details, contract value, TDS rate, and the TDS deducted and paid.
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Amendment in Previously Filed Return: Corrections to the previously filed TDS details can be amended through this section.
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TDS Liability Paid or Payable: The cash ledgers provide the details of TDS paid and any outstanding liabilities.
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Interest or Late Fee Payable and Paid: Details of any interest or late fees due as a result of late filing or payment and payments made are reported under this section.
Steps for Filing Form GSTR-7
Following are the steps to file Form GSTR-7 over the GST portal:
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Navigate to GSTR-7:
Go to ‘Services’>’Returns’>’Returns Dashboard’ and select the financial year and the return filing period for GSTR-7.
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Fill the Details:
The return can be prepared online on the GST portal or offline using the utility tool and then it can be uploaded.
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Enter the Required Details:
Fill in the required details, including information about TDS deducted, any changes to previously filed return, and any interest or late fees due.
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Pay TDS and Other Dues:
Before the return is being filed, the TDS and other dues such as interest or late fees should be paid either through cash or electronic cash ledger.
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Preview and Submit:
Before submitting the Form GSTR-7, review the same to ensure accuracy of the entered details. If there are any discrepancies, the same should be corrected.
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File Form GSTR-7 with DSC/EVC:
To file the form and authenticate the same, use either Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
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Login to the GST portal:
Go to the GST portal at https://www.gst.gov.in/ and login using the credentials.
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Acknowledgement:
Upon successful filing, an acknowledgement will be generated.
Frequently asked questions
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Explain Form GSTR-7 in short.
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Form GSTR-7 is a monthly return filed by taxpayers who are required to deduct Tax at Source (TDS) under GST. The details of TDS deducted while making payment to the suppliers are mentioned in Form GSTR-7.
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Who should file Form GSTR-7?
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Entities and individuals registered under GST as tax deductors must file Form GSTR-7. This typically includes government departments, establishments, and businesses that are authorized to deduct tax at source.
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What is the due date for filing Form GSTR-7?
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Form GSTR-7 must be submitted by the 10th of the month following the month in which the tax at source was deducted.
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What are the consequences for late filing Form GSTR-7?
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Yes. Late filing of Form GSTR-7 results in the penal consequences of INR 200 per day (INR 100 CGST + INR 100 SGST) until the return is filed. The maximum penalty is capped at INR 5,000.
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If there is any mistake in Form GSTR-7, how should it be dealt with?
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Corrections to the filed Form GSTR-7 can be made in the following month’s form. The GST portal allows changes to the returns filed earlier.
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What information is to be provided in Form GSTR-7?
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Form GSTR-7 requires the details of TDS deducted, such as GSTIN of suppliers, the amount of TDS deducted, and the payment of TDS payment details, among other details.
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What is the impact of Form GSTR-7 on the supplier?
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The TDS deducted and reported through Form GSTR-7 is reflected in the supplier’s Form GSTR-2A. This allows them to claim the credit of the TDS deducted.
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What are the prerequisites for filing Form GSTR-7?
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There is no specific prerequisite for filing Form GSTR-7. However, the taxpayers should keep all records of TDS deductions, including contracts and invoices, as a proof of deduction.
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Can an Input Tax Credit (ITC) be claimed for the TDS deducted through Form GSTR-7?
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No. TDS deducted and reported through Form GSTR-7 is not eligible for the Input Tax Credit (ITC) by the deductor. However, the supplier is allowed to claim the credit of deducted TDS.
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What is the consequence of non-filing of Form GSTR-7 after deducting the TDS?
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Failure to furnish Form GSTR-7 after deducting the TDS may result in penal consequences and levy of interest on the TDS amount deducted. Moreover, suppliers may also encounter the challenge to claim the TDS credits.
Prachi Jain
Chartered Accountant
Prachi Jain is a Chartered Accountant with a passion for simplifying finance and tax-related matters through her insightful and informative blogs. With a background in finance and a deep understanding of tax regulations, Prachi has established herself as a trusted source of financial wisdom. Prachi is committed to empowering her readers with the knowledge they need to make informed financial decisions. Her expertise and dedication shine through in every blog post, helping her audience navigate the intricacies of finance and taxes with confidence. Follow Prachi Jain's blog for practical insights and guidance on managing your finances effectively.
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