GSTR-7 Simplified: Filing Steps, Due Date & Late Fee

Compared to other GST returns, GSTR-7 is completely different. You have to deduct the TDS from the payment, keep a record of those deductions, and pay the return. Fortunately, it is not applicable to all taxpayers/businesses. 

This blog will make you understand everything you need to know about GSTR-7. 

GSTR-7 Meaning: What Exactly GSTR-7 Is? 

GSTR-7 is a type of GST return filed by taxpayers who deduct TDS (Tax Deducted at Source) while making payments to their suppliers or vendors for goods and services received. The purpose of this return is to ensure the correct tax amount is deducted from payments and subsequently deposited with the government. It mainly applies to businesses or taxpayers who deal with a high volume of transactions involving vendors and service providers.

Significance of GSTR-7 

GSTR-7 is one of the GST returns due to the following reasons: 

Input Tax Credit (ITC) Reconciliation: The GSTR-7 filing is important for deductees to claim the ITC, as this return contains the details of TDS. The ITC claimed by the deductees and the TDS details provided are reconciled, and then refunds are processed. 

Ensures Compliance: Declaring TDS liabilities in GSTR-7 ensures that your business adheres to the GST laws. 

GSTR-7 Applicability: Who Needs to File GSTR-7 

Any registered taxpayer or business under GST who is involved in a transaction where TDS is required to be deducted as per GST regulations is required to file GSTR-7.

The following entities also come under the purview of TDS deduction, and so they have to file GSTR-7:

• Government agencies
• Local authorities 
• Government departments or establishments 
• Entities specified by the state government or central Government 
• Public sector undertakings
• Bodies set up by the Parliament or state legislatures 

The above-listed entities are required to deduct TDS from any payment paid to the supplier of taxable goods or services if the total invoice value exceeds Rs. 2.5 lakhs. Here is the percentage of TDS that should be deducted in different cases: 

Interstate supply: 2% (1% CGST, 1% SGST)

Intrastate supply: 2% (2% IGST)

However, TDS is applicable only if the transaction value exceeds Rs. 2.5 lakhs. 

GSTR-7: How TDS is Calculated? 

Here is an illustration of how TDS is calculated: 

Supplier: XYZ Pvt. Ltd. 

Receiver: ABC Pvt. Ltd. 

Invoice amount: Rs. 100,000 (exclusive of GST)

GST: 18% (9% CGST & 9% SGST)

CGST Amount: 9% of 100,000 = Rs. 9000

SGST Amount: 9% of 100,000 = Rs. 9000

Total invoice value = 100,000 + 9000 + 9000

= Rs. 1,18,000

TDS @ 2% of Rs. 100,000 = Rs. 2000 i.e (1% CGST & 1% SGST) 

Thus, ABC Pvt. Ltd. will deduct 2% from the total invoice amount. 

The actual amount to be paid = Total invoice amount – TDS amount 

= 1,18,000 – 2000

= 1,16,000 

Prerequisite for Filing GSTR-7 

Following are the requirements that you need to fulfil before filing GSTR-7:

• GSTIN 
• GST Portal Login Credentials
• Transaction Records/Invoices
• TDS Details
• TDS Liability Information
• TDS Refund Details 
• Issued TDS Certificate
• Digital Signature Certificate (DSC) or Electronic Verification Code (EVC)
• Any other document mandated by the Government

How to File GSTR-7 

Following are the details on how to file GSTR-7 via the GST portal: 

Step 1: The process of GSTR-7 filing starts with Logging into the GST Portal with your valid credentials 

Step 2: After logging in, navigate to the ‘Services’ > ‘Returns’ dashboard, 

and choose the financial year and the return filing period for which you want to file GSTR-7.

Step 3: Now feed the details related to the TDS, such as the deductee’s GSTIN and the amount of TDS deducted, segregated SGST, CGST, and IGST. 

Step 4: Provide the details of any previous unpaid due and applicable 

interest to be paid (if applicable). Make the outstanding payment through an electronic cash ledger. 

Step 5: Verify all the information provided to ensure the return to be filed is correct. Once you are certain that all the information is correct, sign the form GSTR-7 digitally using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

Step 6: Once the GSTR–7 is filed successfully, download the acknowledgement and the filed return for your records.

Read More: How to File GSTR-3B

GSTR-7: GST TDS Return Due Date

The due date for filing GSTR-7 is on or before the 10th of the following month. For example, if you are filing the GSTR-7 for November 2024, then the due date would be 10th December 2024. 

GSTR-7: Late Fees

In case of delayed GSTR-7 filing, late fees are charged by the authorities, which as follows: 

Under CGST: Rs. 100/day 

Under SGST: Rs. 100/day 

In total, you are liable to pay Rs. 200/day in case of a delayed GSTR-7 filing. The late fee is calculated from the due date to the day of the actual filing. 

However, this late fee is capped at Rs. 5000. 

Additionally, an interest charge of 18% per annum is levied on the outstanding amount of TDS to be paid.  

Over to You

This was all about GSTR-7 return filing. We hope after reading this blog you got clarity on applicability, due date and late fees pertaining to GSTR-7 filing. If you still have doubts or any further queries, kindly reach out to us. If you are a CA or business owner looking for a perfect GST filing software then let your search end here, because Munim GST Return filing is one of India’s best GST Return filing software. 

Frequently Asked Questions on GSTR-7 

Who should file GSTR-7?

GSTR-7 applies only to taxpayers who deduct the tax while making payments to suppliers against the inward supplies received.  

Can GSTR-7 be revised?

No, GSTR-7 cannot be revised once it is filed. However, if you find any errors, you can update them in next month’s GSTR-7. In other words, if a mistake is made in November 2024’s GSTR-7, then the rectification can be done in December 2024’s GSTR-7.  

Is it mandatory to file GSTR-7?

If there are no TDS deductions in the tax period​, you can skip filing GSTR-7. There is no need to file a NIL GSTR-7 return. 

How to download the GSTR-7 TDS certificate?

Following are the steps to download the GSTR-7 TDS certificate: 

Step 1: Go to the GST Portal

Step 2: Log in with your valid credentials 

Step 3: Navigate to Services > User Services > View/Download Certificates option

Can I delete the deductee record in GSTR-7?​

It is not possible to delete the deductee record. However, if it is updated by mistake, you can assign a significantly lower amount (say Rs. 10).