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GSTR 7 is a GST form that needs to be filled by registered taxpayers who wish to deduct  Tax Deducted at Source (TDS) from their GST Return. All TDS information such as the forms that need to be filled, TDS liability, TDS refund claim, etc. can be found under GSTR 7.

We’ve written a comprehensive article on TDS, what it is and how it’s to be filled. For more details on it, you can read about it here.

What is GSTR 7?

All registered taxpayers on the GST Portal who deduct TDS from their monthly filings are required to fill the form GSTR 7 while claiming for their GST Return. GSTR 7 is required to be filed by entities who deduct tax at the time of making payments to suppliers towards the inward supplies received.  The form is mandatory and needs to be filled within the first 10 days of the coming month.

The GSTR 7 return must contain details of the transactions where the tax was deducted, the source it was deducted by and all the details of the suppliers too.

What is TDS?

Tax Deducted at Source or TDS is a form of advance tax or tax that has been paid for during the time of the transaction. TDS is a form of income for the government as they receive the tax at the start of the transaction and not during the end of the accounting year.

The government introduced TDS as a means to prevent tax evasion or alteration of the accounting of taxes. Since the tax has already been paid in advance, it is unlikely that entities would manipulate the books of accounts.

All single transactions that are above INR 2.5 lakhs are required to pay TDS at 2% of the transaction value. The 2% is divided as 1% towards CGST and 1% towards SGST. In cases when the transaction is interstate, the entire 2% is paid towards IGST.

You can read more on TDS here.

Who is Required to File GSTR 7?

According to section 51 of the CGST Act, the following entities, businesses and individuals are required to file for GSTR 7

  • A department of the establishment of the central or the state government
  • Local authorities
  • Government Agencies and Departments
  • Local businesses and registered entities
  • Public sector undertakings
  • Persons or categories of persons notified by the government

When to File for GSTR 7?

Any registered entity or individual needs to file for GSTR 7 before the 10th of a particular month for the previous month.
For example: If A2Z enterprises need to file for GSTR 7 and TDS for the month of February 2021, then the form should be filled before the 10th of March 2021.

Features and Important Details of GSTR 7

  • Every business entity or registered user on the GST portal needs to file for GSTR 7 if they have paid for TDS in the previous transactions.
  • GSTR 7 needs to be filled before the 10th of every month for the previous month.
  • If a taxpayer does not have any transaction related to TDS, they are not required to fill GSTR 7. Only TDS transactions are entered in GSTR 7.
  • GSTR 7 cannot be filled without full payment of the previous tax liability.
  • GSTR 7 can be filled via online and offline modes, both work.

What is GSTR 7A?

Once a registered individual has filled GSTR 7 and the transactions have been approved by the government, the deductor will receive form GSTR 7A. GSTR 7A is a system generated form that contains all the information regarding the TDS transaction.

A TDS certificate is required to be issued by the supplier in lieu of TDS that is paid by the deductor. The certificate is to be issued within 5 days of crediting the amount to the government. GSTR 7A is a certificate that proves that the registered entity has paid the TDS towards inward supplies.

GSTR 7 Eligibility and Pre-requisites

  • Only registered individuals or entities with a valid user ID, password, and access to the GST Portal can file for GSTR 7.
  • The aggregate turnover for the registered business must be greater than INR 20 lakhs.
  • A registered individual should have an active digital signature in case they wish to file for GSTR 7 through DSC.
  • The entity or tax deductor has made the payment or credited the amount to the supplier’s account.
  • Only transactions that have declared TDS are required to fill form GSTR 7.
  • All details need to be maintained and recorded on transactions where you deduct tax and pay for it on behalf of the vendor. These documents are the supporting documents to your TDS claim and ensure you keep them safe.

Details that are Covered in Form GSTR 7

Only those registered tax individuals or entities who have deducted for TDS are required to fill the form of GSTR 7.   This form contains details like TDS Deducted, TDS liability, and TDS refund if any. The form is to be filled before the 10th of the following month and it needs to be filled online, on the GST Portal.

The form contains the following details:

1. TDS details from vendor/suppliers for inward supplies

2. The liability that has been paid and that is to be paid

3. Applicable return period

4. A refund that can be claimed

Once a form has been filled and submitted, revisions on those forms cannot be made. In case you’ve detected an error or need to make some changes, those changes can only be made in the following months while filling in form GSTR 7.

For example, you have filled the form for the month of March 2021 on 8th April 2021 and submitted it. On 10th April 2021, you detect an error and wish to correct the changes. That is not possible. Only in the month of May 2021 or the following months to come can you correct the changes or errors.

FAQs about GSTR 7

What is the penalty for filing GSTR 7 late?

If GSTR 7 is not filed on time, a penalty of INR 200 is charged, INR 100 towards CGST and INR 100 towards SGST per day. The maximum limit to this fine is INR 5000. Along with the penalty, an interest of 18% per annum is also to be paid on the total taxable amount.
In the case of IGST, there is no penalty charged for the delayed filing of GSTR 7.

When is the due date for filing GSTR 7?

GSTR 7 needs to be filed within the 10th of the following month in case it needs to be filled for the current month.

Where can one find the GSTR 7 form on the website?

Once a registered individual has logged in onto the GST Portal website, they need to navigate themselves through the following steps:
GST Login > Services > Returns > Returns Dashboard

Can GSTR 7 and 7A be revised?

No. Once the form has been filled, reviewed and submitted, GSTR 7 cannot be revised. Any mistake that is made on the form that needs to be corrected can be corrected in the following months GSTR 7 form.
For example, If Mr Promod is filing for GSTR 7 for the month of August, the form needs to be submitted by September. In case the GSTR 7 form filled in the month of September has any mistakes that need to be correct, they can only be corrected when filling for the GSTR 7 form in the month of October.
In short, any mistakes made in the GSTR 7 form once it has been submitted can be corrected in the following months to come. The submitted form cannot be corrected.

What is the process once the GSTR 7 form has been filled and submitted?

Once you have filled the form, always ensure you go through the data, verify it and only then click on the submit button. Once a form is submitted, no changes can be made to the form. 
After you have submitted the form
- An ARN is generated for the successful filling of the form
- An SMS and Email regarding the successful submission of the form is sent to the registered mobile number and email id
- The details mentioned in the form that needs to be sent to the deductee are sent to them for either the acceptance or rejection of the details.
- The return will become available on the dashboard to view