What is GSTR-7?
GSTR-7 is required to be filed by every person who is liable to deduct TDS under GST.
GSTR-7 contains details of TDS deducted, any amendments to it thereof, TDS liability payable and paid, TDS refund claimed if any, etc.
The provisions of TDS on GST are applicable from 1st October, 2018 vide NN 50/2018- Central Tax dated 13th September, 2018.
Who is required to deduct TDS and file GSTR-7?
The following persons are required to deduct TDS under GST –
The following persons are notified through Notification No 33/2017- Central Tax, dated 15th September, 2017 –
Note – In other words we can say that, all undertakings that are controlled by Central Government, State Government or a local authority are covered under this provision.
No TDS to be deducted if the payment is made by a person who is not mentioned in the above mentioned list.
You May Be Also Interested in Reading This Post:
When shall TDS not be deducted?
It is imperial to understand that TDS is required to be deducted only if payment is made or credited to the supplier by the above mentioned entities. If payment is made by any other than mentioned above, no TDS shall be deducted while making payment to the supplier.
The following are the two cases where TDS shall not be deducted –
1. Contract value does not exceed Rs. 2.5 Lakhs
If the aggregate contract value by an individual supplier does not exceed Rs 2.5 lakhs, TDS is not required to be deducted.
Example – Mr X enters into a contract with a public undertaking for providing services worth Rs 3 lakhs. With regards to this, Rs 1.5 lakhs is received as advance in FY 2018-19 and remaining payment of Rs 1.5 lakhs in FY 19-20.
In this case, provisions of TDS will apply as the total contract value exceeds Rs 2.5 lakhs.
2. Location of Recipient is different from Location of supplier and Place of Supply
TDS shall not be deducted if location of recipient is different from location of supplier and place of supply. While determining the applicability of provisions of TDS, it is important to know place of supply.
Due Date for filing GSTR-7
Due date for filing GSTR 7 is 10th of the following month in which the amount of TDS is deducted is by the deductor. Return once filed cannot be revised.
Due date for filing return for the month of October shall be 10th November.
You May Be Also Interested in Reading This Post:
Penalty for Non-Compliance
TDS is not deducted
Interest to be paid @18% along with TDS amount. Where such amount is failed to be paid voluntarily, such amount as determined by law shall be payable.
TDS deducted but not paid or late paid
Interest to be paid @18% along with TDS amount. Where such amount is failed to be paid voluntarily, such amount as determined by law shall be payable.
Late filing of TDS return
Deductor is liable to pay penalty Rs 100 per day CGST and Rs 100 per day SGST in case of delay in filing of return, subject to a maximum of Rs 5000.
Delay or failure in issuing TDS certificate
Where the deductor fails to issue or delays in issuing TDS certificate to the deductee within 5 days from filing the return, he shall be liable to pay a late of Rs 200 per day (Rs 100 CGST and Rs 100 SGST), subject to a maximum of Rs 5000.
Any excess or erroneous amount deducted and paid to the Govt shall be dealt for refund under Section 54. However, if the deducted amount is already credited to the electronic cash ledger of the supplier, the same shall not be refunded.
TDS Certificate
Every deductor (i.e. the recipient) is required to issue a TDS certificate in GSTR-7 to the deducted (i.e. the supplier) within 5 days of depositing TDS to the Government.
The TDS so deducted is visible to the supplier under separate form “TDS and TCS received” on the returns dashboard.
The supplier has to accept or reject these entries that are reflected in this form. Once these records are accepted, they are reflected in GSTR 2A under Part C and the amount is credited to the electronic cash ledger.
Details to be provided in GSTR-7
GSTIN and Business Name
GSTIN, legal name and trade name of the deductor deducting TDS is auto populated at the time of filing return.
Details of tax deducted at source
The following details are mentioned in this section
Amendments to details at tax deducted at source in respect of any earlier tax period
Where an error is made in the earlier tax period, rectifications can be made to the same by updating details in this section. The following details are required in this section
In case, a record is rejected by the deductee, the same entry is reflected in amendment section “Rejected by Deductee”.
Tax deduction at source and paid
This section includes the details of TDS deducted (IGST / CGST or SGST) from the payment made to the supplier. It also includes corresponding amount of TDS made to the Government from electronic cash ledger. TDS payable has to be discharged in cash only.
Interest, late fee payable and paid
Details of interest and late fees payable and paid on TDS amount is required to be declared here.
Refund claimed from electronic cash ledger
Where a deductor wants to claim refund of TDS paid from his electronic cash ledger, details must be mentioned here. The following details are to be mentioned
Debit entries in electronic cash ledger for TDS/interest payment [to be populated after payment of tax and submissions of return]
This section is auto populated after the deductor files his TDS return and makes payment of TDS along with interest. This number is based on debit entry made in the electronic cash ledger for payment of TDS.
File your GST returns in minutes, not hours!
Get Live Demo and experience the simplicity by yourself.