GSTR 7 Form: Meaning, Filing Process, Due Date

GSTR 7 Form is filed only by certain taxpayers, not all the registered taxpayers. Unlike ITR which is filed once a year, the GSTR 7 form needs to be filed by eligible taxpayers every month. If you want to find out what is GSTR 7 Form’s meaning, filing process and due date for filing, check out this blog post!

What does GSTR 7 Form mean?

GSTR 7 form means a monthly return form which is required to be furnished by taxable persons who need to deduct TDS under GST. 

GSTR 7 form shows the details of TDS deducted, TDS amount which is paid and payable and any TDS refund claimed. The individual whose TDS has been deducted a.k.a the deductee is entitled to the Input Tax Credit or ITC for that TDS and may use it for the payment of output tax liability.

After the deadline for completing Form GSTR 7 each deductee can electronically see the details of the TDS deducted in Form GSTR 2A. Also the deductee will receive the certificate for the TDS deducted in Form GSTR 7A based on the return filed in Form GSTR 7. 

What are the Features of GSTR 7 Form?

Form GSTR 7 has the following features:

• Not all taxpayers have to file GSTR 7 and only certain registered taxpayers are required to file it.
• TDS has to be deducted by specific registered taxpayers at the time of making payment to the suppliers. The deducted TDS gets deposited to the government and then GSTR 7 is filed for this TDS.
• GSTR 7 Form due date is 10th of every month.
• Unlike previous tax liability is fully paid, GSTR 7 cannot be filed.
• Details furnished in GSTR 7 Form by the TDS receiver are available to his suppliers in GSTR 2 Form Part C.
• After GSTR 7 form is filed successfully, the deductee is issued a TDS certificate.

Which entities are eligible to deduct TDS and file GSTR 7 Form?

According to the GST norms, only the eligible entities need to deduct TDS and then file GSTR 7 form. The following entities are eligible for deducting TDS:

• Department or Establishment of Central/State Government
• Local Authority
• Public Sector Undertakings (PSUs)
• Governmental Agencies
• Persons or category of persons as notified in the GST Council’s recommendations.
• Board or Authority or any other Body set up by an Act of Parliament, State Legislature or Government with 51% equity ownership of the Government
• Society set up by the Central or any State government or a Local Authority, registered under the Societies Registration Act.

TDS is required to be deducted at 2% only when the total value of supplies under a contract for the supply of taxable goods or services, or both, exceeds Rs. 2,50,000, excluding taxes and cess leviable under GST. 

When to file the GSTR 7 form?

As mentioned earlier, the GSTR 7 Form has to be filed every month. This return for a particular month can be filed upon that month’s completion. The GSTR 7 form due date is 10th of the following month. So, if you have to file GSTR 7 Form for July 2024, the GSTR 7 Form due date will be 10th August 2024.

How to File GSTR 7 Online?

You can file the GSTR 7 form online by following these simple steps.

Step 1: Visit the official portal of GST.

Step 2: Log in using your user ID and password. If you do not have an account, it is mandatory to create one for filing GSTR 7 online.

Step 3: Once you have logged in, locate and click on these options/buttons on the portal: Services > Returns > Returns Dashboard.

Step 4: Thereafter, you will see a ‘File Returns’ tab, click on it and then choose the financial year and the period for return filing.

Step 5: Click on the search option and then select the ‘Prepare Online’ option so that you can fill and file your GSTR 7 online.

Step 6: Now, on your screen, the GSTR 7 form will be displayed and you must fill out all the sections properly.

Step 7: Once you have filled the sections in GSTR 7, review it and correct any errors if found.

Step 8: Now, you must sign a certificate to validate that all the information provided by you is correct and true.

Step 9: Once all these steps are completed, you can file the GSTR 7 by clicking on the file GST option.

What happens if you do not file GSTR 7 Form?

It is advised to file Form GSTR 7 in a timely manner. This form is a mandatory form, so all the eligible taxpayers are required to file it. There are strict deadlines for filing tax returns stated by the GST Council. 

If GST return isn’t filed in a timely manner, a penalty of Rs. 100 on CGST and Rs. 100 on SGST will be imposed for each day, thus adding up to a total of Rs. 200 per day. However, this penalty amount cannot cross the Rs. 5000 limit. Along with this penalty, 18% interest per annum on the payable amount will be applicable from the GSTR 7 due date for filing.

Conclusion

GSTR 7 is a crucial GST form for filing returns by specified persons who deduct TDS at the time of making payments to certain registered suppliers. By filing GSTR 7 form on time, individuals maintain transparency with the Government. This form ensures compliance with GST regulations and allows for efficient collection of taxes.

Make sure that you file this form before the due date of every month. Doing so will help you to avoid penalties and interest charges. Don't forget to have valid GST registration and stay updated with the latest guidelines for GST set by the GST council.

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.