GSTR-7 is a monthly return form filed by the taxpayers who are required to deduct TDS under the GST regulations. The return form GSTR-7 comprises details of tax deducted at source, TDS liability paid/payable, TDS refund claimed (As per Section 54 of CGST Act, 2017) if any, incurred interest, late fees, etc. paid or payable.
What is GSTR-7?
GSTR-7 contains details regarding the TDS deducted, TDS payable, etc. by the deductor in any particular tax period. The deductees can access this information in Form GSTR-2A (auto-populated) via the common portal. The deductor deducts the TDS amount at the time of making a payment to the supplier or deductee. Moreover, the filing of GSTR-7 is important because it allows the deductee to claim the input credit and utilize the deducted TDS for the payment of the outstanding tax liability.
What is the due date for GSTR-7?
The deductor needs to file the GSTR-7 within 10 days after the end of the month in which TDS was deducted. For instance, the due date for filing GSTR-7 for January 2019 would be 10th February 2019.
Who is required to deduct TDS?
As per Section 51 of CGST Act, 2017, the following entities are required to deduct TDS:
- A department or an establishment of the Central or the State government
- Local authority
- Government agencies
- Persons or category of persons as notified by the GST Council (notification 50/2018 – Central Tax dated 13th September, 2018)
- An authority or a board or any other body set up by the Parliament or a State Legislature or by any government, with 51% of equity owned by the government
- A society established by the Central or any State government or a Local Authority registered under the Societies Registration Act, 1860
- Public sector undertakings.
What details need to be provided in GSTR-7?
GSTR-7 has a total of 8 headings, which are explained below:
- GSTIN – Goods and Services Tax Identification Number (GSTIN) of the person deducting TDS under GST gets auto-populated in GSTR-2A at the time of filing the return.
- Business Name – This field should contain the name of the taxpayer which also gets auto-populated after logging into the GST portal. Additionally, if there is any trade name of the registered person, it will also get auto-populated.
- Details of TDS – Here, you need to provide the details regarding the TDS transaction such as GSTIN of the deductee, payment details, TDS amounts, and more. Based on the information provided in this field, the tax payable will be shown under 3 components (CGST, SGST, and IGST).
- Amendments to details of TDS deducted in any earlier tax period – If you need to make any correction with regards to the details furnished in the return of previous tax period, the same can be done by entering the original and revised details in this section. The details provided in this section include original and revised details of the GSTIN of the deductee, the amount paid to deductee on which TDS is deducted, and the amount deducted as TDS.
- Tax deducted at source and paid – In this section, you need to provide details regarding the central, state, and integrated tax deducted from the payment made to the deductee. Additionally, you also need to provide the central, state, and integrated tax paid to the government.
- Late fee, interest payable and paid – If you are required to pay interest or late fees, the details of such fees payable or paid should be provided in this section.
- Refund claimed (As per section 54 of CGST Act, 2017) from electronic cash ledger – In this section, you need to provide details regarding the TDS refund. You also need to provide details of your bank account in which you want the TDS refund to be credited.
- Debit entries in electronic cash ledger for TDS tax/interest payment etc.
What is the penalty for the late filing of GSTR-7?
The non-filing of GSTR-7 leads to a late fee of ?100 under CGST and ?100 under SGST. So, the total of ?200 per day will be levied if the return is not filing on or before the due date. The maximum penalty is ?5,000 under CGST and ?5,000 under SGST (Rs.10000) In addition to the late fee, an interest of 18% per annum has to be paid which will be applicable from the next day of the due date of filing to the date of making the actual payment.
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