Easy Filing Procedure to GSTR 7 Form Online for TDS Deductor

The GSTR-7 is the GST return form for filing the returns for the tax deducted at source. The form is to be filed by 10th of the next month for a particular tax period, by all the eligible taxpayers who deduct tax at source. Normal taxpayers have to file the details of outward supplied using GSTR 1 form while the composition scheme taxpayers will use GSTR 4 form to file their quarterly returns and pay taxes.

• GSTR 7 Form Features
• GSTR 7 Eligibility and Due Date
• Who is Required to Deduct TDS?
• Simple Guide to File GSTR 7
• Interest on Late Payment
• GSTR 7 Filing By Gen GST Software

In this article, we will discuss a step-by-step procedure for filing GSTR 7 form for TDS. But before that, you need to know some basic things about the TDS and GSTR 7 Form.

Latest Update in GSTR 7

• 53rd GST Council Meeting Update: “The Council recommended that return in form GSTR-7, to be filed by the registered persons who are required to deduct tax at source under section 51 of CGST Act, is to be filed every month irrespective of whether any tax has been deducted during the said month or not. It has also been recommended that no late fee may be payable for delayed filing of Nil form GSTR-7 return. Further, it has been recommended that invoice-wise details may be required to be furnished in the said form GSTR-7 return.”
• Taxpayers with their principal place of business in Manipur are exempt from filing GSTR-7 by the 25th of August 2023. read notification
• “Late fee payable for delayed furnishing of FORM GSTR-7 to be reduced to Rs.50/- per day (Rs. 25 CGST + Rs 25 SGST) and to be capped to a maximum of Rs 2000/- (Rs. 1,000 CGST + Rs 1,000 SGST) per return.” Read Press Release

Features of GSTR 7 Form

• TDS is required to be deducted by certain registered taxpayers while making payments to the supplier. It will be deposited to the government. No TDS will be deducted when the supplier location and place of supply is different from the registration place (State) of the recipient
• The form is to be filed monthly by 10th of the month for an immediately preceding tax period
• The GSTR 7 form is to be filed only by specific taxpayers and not by all registered taxpayers
• It will contain the details of the tax deducted at source
• This return cannot be filed without full payment of previous tax liability
• The details furnished by a TDS receiver in his GSTR-7 form will be available to his/her respective suppliers in Part C of the GSTR-2A Form
• GSTR-7A Form will be issued a TDS certificate to the deductee (from whom tax is deducted) upon the successful filing of this form
• All the amount in the form will be in rupees (INR)

GSTR-7 Eligibility and GST Due Dates

Any registered taxpayer who levies the tax at source under section 37 of the GST Act will have to file a TDS return in Form GSTR-7 at the GST Portal.

The due dates for filing GSTR-7 are as follows:

Tax-paying Entities Who Require to Deduct TDS Under GST:

• A department or establishment of the Central or State Government, or
• The local authority, or
• Governmental agencies, or
• Persons or category of persons as may be notified, by the Central or a State Government on the recommendations of the Council.

Also according to the Notification No. 33/2017 Central Tax, 15th September 2017. The listed entities also required to deduct TDS-

• An authority or a board or any other body set up by Parliament or a State Legislature or by a government, with 51% equity ( control) owned by the government
• A society established by the Central or any State Government or a Local Authority and the society is registered under the Societies Registration Act, of 1860
• Public sector undertakings

All the mentioned deductor needs deduct the TDS where the total value of supply under the project surpasses the value of Rs 2.5 Lakhs. While the rate for TDS deduction is 2% (CGST 1% + SGST 1%) in case of intrastate supply and 2 % (IGST) in case of interstate supplies.

Also to note that the TDS is not subject to be deducted when the location of the supplier and place of supply does not match the registration place (State) of the recipient.

Procedure for Filing GSTR-7 Form

The GSTR 7 Form has 8 tables that furnish different details related to the tax deducted at source. Follow the procedure below to understand the filing process.

Table 1 and 2: Contain the GSTIN number, legal name and trade name of deductor

• GSTIN: It is the unique GST Identification Number assigned to each registered taxpayer
• Legal name of the Deductor: The name of the registered person who deducts the tax
• Trade Name: Name of the business of the Deductor, if any

Table 3: Details of the tax deducted at source

• This table is to contain the details of the tax deducted at the source by the eligible Deductor. It will contain the GSTIN of the deductee, total amount and TDS amount (integrated/central/state tax)

Table 4:  Amendments to details of tax deducted at source in respect of any earlier tax period

• It will contain details of the amendments/changes in the previously supplied TDS details for earlier tax months

Table 5:  Tax deduction at source and paid

• Furnish the details of the tax (integrated/central/state) amount deducted from the deductee and the tax (integrated/central/state) an amount paid to the government

Table 6: Interest, late Fee payable and paid

• If there is any interest and/or late fee liable on the TDS amount, furnish the details of the same in this table along with the details of the amount paid

Table 7: Refund claimed from electronic cash ledger

• Provide the details of any refund you may have claimed from your electronic cash ledger on the payment of TDS

Table 8: Debit entries in electronic cash ledger for TDS/interest payment [to be populated after payment of tax and submissions of return]

Once you finish filing the return and make the payment of the tax deducted at source (TDS + interest) to the government, the details of the same will automatically appear in your electronic cash ledger.

At the bottom, the user needs to provide his/her digital signature to verify the correctness Deductor of the provided information.

Terms Used in GSTR-7 Form

• GSTIN: Goods and Services Tax Identification Number Get to know the important details of your GSTIN (GST Identification Number) in India. We also published its applicability with full details
• TDS: Tax Deducted at Source
• Deductor: the person who deducts the tax
• Deductee: the person from whom the tax is deducted

Interest on Late GST Payment & Missing GSTR Due Date Penalty

GST Council has introduced rules and regulations for filing the late return or missing the tax payment due dates to unify the system flawlessly. According to the Act, each late payment is liable to attract 18 percent interest per annum on the payable tax from the due date to the date of paying the tax.

The detailed information regarding the same is covered under point 50 of chapter 10 here: https://cbec-gst.gov.in/CGST-bill-e.htmlDeductor

The simplified example of understanding the late payment fee and penalty: Suppose, a taxpayer whose taxable amount is 1000 Rs. missed out the due date for tax payment in a particular month and wants to pay off the dues after 1 day. In that case, the calculation will be like this: 1000*18/100*1/365= Rs. 0.49 per day (here, 18% is the interest accrued on taxable amount)

If he missed out for more than one days then the calculation will be multiple of 4.93 Rs.

Instead of missing the due dates of tax payment, if the taxpayer misses the return filing dates, they are liable to pay Rs. 25 for CGST and Rs.25 for SGST per day till the filling is done. Here, the maximum cap for the penalty is Rs. 5,000 till the taxpayer file the returns.

FAQs on GSTR 7 Form for TDS Deductor

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