GSTR-7 Return Filing, Format, Eligibility, and Rules

Amaey Anand

Senior Writer

GSTR-7 Return Filing, Format, Eligibility, and Rules

The Goods and Services Tax has replaced multiple single taxes as an indirect tax. India’s single domestic indirect tax law came into effect on 1st July 2017 and has governed the entire country since then.

The GSTR-7 form is one of the statements or documents filled every month by the individuals who deduct tax while making payments for the inward supplies received from different vendors or suppliers.

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Hence, it is a crucial statute under the eminent GST laws. Let us know in detail all about the GSTR-7 form, its importance, format, eligibility, and other rules associated with it.

What is GSTR-7?

If you are wondering about the meaning of GSTR-7, know that it is a type of return that must be adhered to by all the taxpayers registered as TDS deductors under GST guidelines. It provides all the details about the supplier and its transactions where tax was deducted on a source-to-source basis.

In the GSTR-7 form, eight different sections ensure fine details about the tax deductions for the registered taxpayers under GST guidelines. It needs to be filled monthly, and any casualty attracts a penalty as decided by the GST rules. Below is a copy of the GSTR-7 return.

Importance of GSTR-7 form

Importance of GSTR-7 form

Many times taxpayers are confused about the details of the GSTR-7 return and may not know its importance. Before jumping to any other benefit of this statute in GST, we need to understand that it is one of the essential documents in the GST tax regime. It contains all details like refund claimed for TDS, total TDS payable, and amount of TDS paid.

TDS deductions can be claimed as the Input Tax Credit by the person under whose name it has been deducted. Output tax is subsequently paid using this credit.

The certificates for the TDS deductions under GST are made available in the form of GSTR- 7A based on the correct filling of the GSTR-7 form only. Hence, filling the GSTR-7 correctly with all precise information is crucial without hiding any details to get valid certificates.

The detail of TDS deducted is made available electronically within “Part-C” of GSTR-2A once the due date for filing the GSTR-7 return is over. Hence, timely filing of this form helps offer all details to the deductees and electronically.

Individuals/entities eligible to deduct TDS under GST

Before filling the GSTR-7 return, it is vital to check its eligibility. Hence, the individuals qualified to deduct TDS under GST guidelines include:

  • Any local authority
  • Any government agency
  • Any department or establishment of the state or central government
  • Any person or categories of persons notified by the state or central government on the recommendations of the GST Council

Not only these, but according to the latest notification declared by the GST council, there are undoubtedly other individuals or entities eligible for TDS deduction. These include:

  • Public sector undertakings
  • A society established by a local authority, state government, or the federal government under the Societies Registration Act, 1860.
  • Any board, authority, or any other body established by a state legislature, government, or the parliament with 51% equity or control managed by the government only

All the deductors mentioned above can deduct tax according to the GST guidelines. It is possible if the total value of supply under the contract between entities exceeds the value of INR 2,50,000. 

The exact rates of TDS depend on the type of supplies. It is 2% – CGST 1% + SGST 1% for intrastate supply while it is 2% – IGST for interstate supply. Here, it is important to note that the recipient’s registered address is different from the location of the supplier and the place of supply.

Going by all the above conditions, anyone coming in above eligibility criteria to deduct TDS under GST is eligible to file the GSTR-7 form.

Main details required to file GSTR-7 form

Once the eligibility of the person filing the GSTR-7 return is precise, it is vital to know the prerequisites to fill this form. The main details required to fill all the eight sections of the GSTR-7 form are:

  • GSTIN details: GSTIN is a Goods and Services Taxpayer Identification Number allotted to all taxpayers. It is a state-wise PAN-bas ed 15 digit number auto-populated while filing a GSTR-7 return. You can verified GST number with tools.
  • Deductor’s legal name: While logging into the GST portal for filing the GSTR-7 form, it auto-populates the taxpayer’s name. The registered name of the trade also appears at the same time.
  • Tax deducted at source details: It requires all the details of the deductee like total TDS amount, the total amount over which this TDS is deducted, and GSTIN of the deductee.
  • Changes to TDS details to any previous taxes paid: It helps generate the GSTR- 7A certificate after amendments to the last GSTR-7 return. It contains both original and revised details for easy and precise corrections.
  • Details of tax deducted at source and paid: Contains the amount of federal, state, and local tax withheld at source. You should also know how much tax was paid.
  • Late fees, interest if applicable, and paid: If the GSTR-7 filing is after the due date, the details of the total late fees, associated interest amount should be calculated. Further, the total amount paid for late fees and interests is required.
  • Claimed refund from electronic cash ledger: Details on refund claims from the TDS under GST are included in this document. 
  • Any debit entries in electronic cash ledger for tax deducted at source: All the details in debit entries are auto-populated after correct GSTR-7 filing.

How to file GSTR-7 return 

The GSTR-7 filing is an easy process that doesn’t require a significant time once all the prerequisites are already available. The quick steps to fill all the details in the different tables of this form include:

Point 1 and 2: GSTIN and Details of Deductor

GSTIN and Details of DeductorIt contains GSTIN, the legal name of the deductor, and the trade name. GSTIN is assigned to every registered taxpayer by the GST authority. The legal name of the deductor is the name of the registered person authorized to deduct the tax. The trade name stands for the name of the deductor’s business.

Point 3: Tax Deducted at Source Details

Tax Deducted at Source DetailsThere are three columns in this section, including GSTIN of the deductee, details of the amount payable to the deductee on whom the tax is deducted, and the TDS amount under GST. The TDS under GST is further divided into integrated tax, central tax, and state or UT tax.

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Point 4: Amendments Section

Amendments SectionThis section allows the addition of amendment details of TDS if there is any earlier tax paid in respect to the tax period. It has two different columns for original and revised details to correct any previous issues in the GSTR-7 return. 

It includes details like a month, GSTIN of deductee, the amount paid to the deductee on which TDS is deducted- original and revised, and the amount bifurcation in integrated, central, state/UT tax, etc.

Point 5: TDS and Payment Details

TDS and Payment DetailsThis section contains three columns, including a detailed description of tax, the amount of tax deducted, and the amount paid to it. The three different types of TDS include integrated tax, central tax, and state/UT tax.

Point 6: Interests and Late Fees Details

Interests and Late Fees DetailsIt needs to be filled if the GSTR-7 return is filed after the 10th of the next month. It contains three sections, including the description of interest on integrated tax, central tax, state/UT tax, and the late fees for central tax, state/UT tax, etc. The amount payable and paid details are provided in the following two columns.

Point 7: Refunds Section

Refunds SectionIt contains seven sections for details of the refunds claimed from the electronic cash ledgers. It includes the amount of tax, interests, penalty, fees, including other payments, and the debit entry numbers for all three taxes, i.e., integrated tax, central tax, and state/UT tax. It further requires the bank account details for receiving the refunds from the respective authority.

Point 8: Debit Entry Details

Debit Entry DetailsIt is filled after the payment of the tax amount and returns submission. Taxes, interest, and late fees are detailed for the debit entries. Separate sections exist for the integrated tax, the central tax, and the state/UT tax.

Point 8: Declaration and Authentication

Declaration and AuthenticationThe last part of the GSTR-7 form is the declaration by the user and the authentication by the authorized signatory. The declaration ensures that all details are provided correctly, and the authentication can be achieved using Electronic Verification Code (EVC) or Digital Signature Certificate (DSC).

The Process to Revise the GSTR-7 Form

Users often fill in the wrong details, so revising the existing GSTR-7 form might become crucial. 

However, it is impossible to revise the existing details once furbished in the form. Therefore, the authority further allows amendments to the next month’s GSTR-7 form to eliminate the mistakes in previous documents. 

Hence, it is possible to correct any incorrect details in the next month’s form submission. Further, You can make these amendments at any time upon identification of the issues. 

To conclude, it is impossible to revise the GSTR-7 in the same month but offer corrections while filing the form in the next month.

GSTR-7 Return Due Date

You have until the 10th of the following month to file your GSTR-7 return. Hence, to prevent the penalty for late filing of this return, the eligible individuals or entities need to file the previous month’s return before the 10th of the following month.

Penalty for Not Filing GSTR-7 Return on Time

The council charges late fees and interest for non-filing GSTR-7 forms on or before the due date. Since the due date for filing this return is the 10th of the next month, any late submission calls for the late fees and additional interests.

It costs INR 100 under CGST and INR100 under SGST per day. Hence, the late fees are INR 200 daily for not filing GSTR-7 returns on time. 

In any case, these late fees can’t exceed INR 5,000. It further includes the interest paid at the rate of 18% per annum. 

For the late filing of GSTR-7, interest is calculated from the next business day following the due date to the payment date on which the form is filed. Therefore, in the case of IGST, there are no late fees for delayed filing of the GSTR-7 form.

GSTR-7 filing General FAQs

What does GSTR-7 mean?

GSTR-7 refers to the individuals or entities’ monthly returns eligible to deduct tax at source or TDS under GST.

Is the GSTR-7 format complex?

There is no complexity in the GSTR-7 format. It contains eight sections that can be filled quickly, followed by the declaration and authentication. 

What are the rules for GSTR-7 applicability?

GSTR-7 return filing is applicable for all individuals and entities under the GST guidelines and laws. The amount of the TDS under GST is fixed.

Wrapping Up

GSTR-7 return is an integral part of the individuals eligible to deduct tax at source under GST transactions. Therefore, it needs to be filled monthly, and the last date to fill it is the 10th of every subsequent month. 

Further, any individual or entity eligible to charge TDS under GST can file this return on the online portal of the concerned authority. 

Any deviation from the last date of filing the GSTR-7 form calls for late fees, interests, etc. It is easy to understand the different columns in this form and fill in the details accordingly. There is an option to revise the information in this form next month.

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