GSTR-7 – TDS Deductor

GSTR-7 – TDS Deductor

What is GSTR-7?
GSTR-7 is a monthly return that must be filed by persons who are required to deduct TDS (Tax Deducted at Source) under the Goods and Services Tax (GST) regime. This return contains details of TDS deducted, the liability for the TDS deducted, and TDS paid and payable.

Who should file GSTR-7?
Only the following entities are required to deduct TDS under GST and thus file GSTR-7:

A department or establishment of the Central or State Government

Local authority

Governmental agencies

Other notified persons (e.g., PSUs)

Threshold for TDS under GST: TDS is to be deducted at 2% (1% CGST + 1% SGST or 2% IGST) if the total contract value exceeds ₹2.5 lakhs.

Due Date for Filing GSTR-7
20th of the following month
For example, for TDS deducted in April, the return must be filed by May 20.

Contents of GSTR-7
The return consists of the following sections:

GSTIN of the Deductor

Details of the deductee and TDS deducted – includes GSTIN of the deductee, invoice details, TDS amount.

TDS Liability – auto-populated based on deduction details.

TDS Paid (Cash or Credit Ledger)

Interest, late fee (if applicable)

Refund Claimed (if any)

Late Fees and Penalties
Late Filing Fee: ₹100 per day (under CGST & SGST each) up to ₹5,000 each.

Interest: 18% per annum on the TDS amount if not deposited on time.

Benefits for Deductee
Once the deductor files GSTR-7, the deducted TDS reflects in the GSTR-2A of the deductee.

The deductee can then claim credit of this TDS in their electronic cash ledger.

Mode of Filing
Can be filed online via the GST Portal

Alternatively, through offline utilities provided by the portal.