Furnishing of GSTR 7 – Section 39(3) of CGST Act 2017

FURNISHING OF GSTR 7 – SECTION 39(3) OF CGST ACT 2017- GST SERIES – PART 27

1. The GSTR-7 form is a monthly return form required to be furnished by all the taxable persons who are required to deduct TDS (Tax Deducted at Source) under

2. Statutory Provisions :

Section 39(3) – Every registered person required to deduct tax at source under the provisions of Section 51 shall furnish a return, electronically, for the month in which such deductions have been made within ten days after the end of such month.

Rule 66(1) – Every registered person required to deduct tax at source under Section 51 shall furnish a return in FORM GSTR 7 electronically through the common portal.

 

3. The person required to deduct Tax at Source: As per Sec 51 of CGST Act, the following entities need to deduct TDS, and thus will be required to furnish GSTR-7 return:-

(a) A department or establishment of the Central of the State government

(b) Local Authority

(c) Governmental agencies

(d) Persons or category of persons as may be notified on the recommendations of the GST Council

(e) Authority or a Board or any other body which has been set up by Parliament or a State Legislature or by a Government, with 51% equity, owned by Government

(f)  Society established by the Central or any State government or a Local Authority, which is registered under the Societies Registration Act

(g)  Public Sector undertakings

4. Due Date for filing GSTR 7: The due date for filing GSTR 7 is the 10th of the following month.

4.1 Due to COVID-19 pandemic and challenges faced by taxpayers, the Government has extended dates for GSTR 7 vide notification no. Notification No. 35/2020- Central Tax, dated 03.04.2020 & Notification No. 55/2020- Central Tax, dated 27.06.2020.

4.2 As per notification No. 35/2020-Central Tax dated 03.04.2020, where the timeline for any compliance required as per section 39(3)  and section 51 of the CGST Act 2017  falls during the period from 20.03.2020 to 29.06.2020, the same has been extended till 30.06.2020.

4.3 The CBIC has further extended the due date as 31st Aug 2020 vide notification No. Notification No. 55/2020- Central Tax, dated 27.06.2020.

4.4 Accordingly, the due date for furnishing of return in FORM GSTR-7 along with a deposit of tax deducted for the said period has also been extended till 31.08.2020 and no interest under section 50 shall be leviable if tax deducted is deposited by 31.08.2020.”

5. Prerequisite for filing of GSTR

• The person deducting the tax should be a registered Tax Deductor and have a valid GSTIN
• Tax Deductor should log in with credentials as a Tax Deductor on the GST portal
• Tax Deductor has made the payment or credited the amount to the supplier’s account

6. Procedure to file GSTR 7 Form GSTR-7 can be accessed on the GST Portal, post login in the Returns Dashboard by the taxpayer.

6.1 The path is Services > Returns > Returns Dashboard.

7. Contents of GSTR 7 : The GSTR 7 Form has a total of 8 tables to furnish different details related to the tax deducted at the source.

Table 1 & 2  – Preliminary details :

Table 1	GSTIN
Table 2 (a)	Legal Name of the registered person	Auto Populated
Table 2(b)	Trade Name, if any

Table 3  Details of the Tax deducted at  source

GSTIN of Deductee	Amount paid to the deductee on which tax is to be deducted	Amount of Tax deducted at Source
		IGST	CGST	SGST
1	2	3	4	5

Table 4:  Amendments to details of tax deducted at source in respect of any earlier tax period The correction to the data submitted in the return of previous months can be done here by filling the original and revised details in this section.

Original Details			Revised Details
Month	GSTIN of deductee	Amount paid to the deductee on which tax is deducted	GSTIN of deductee	Amount paid to the deductee on which tax is deducted	Amount of Tax Deducted at Source
					IGST	CGST	SGST
1	2	3	4	5	6	7	8

Table 5:  Tax deduction at source and paid  The details of the tax  amount deducted from the deductee and the  paid to the government is required to be furnished in this table

Description	Amount of Tax deducted	Amount Paid
1	2	3
(a)   IGST
(b)   CGST
(c )  SGST

Table 6: Interest, Late Fee payable and paid  The details of interest and/or late fee liable on the TDS amount, along with the details of the amount paid is to be furnished in this table

Description	Amount payable	Amount Paid
1	2	3
I Interest on account of TDS in respect of
(a) IGST
(b) CGST
(c) SGST
II Late Fee
(a) CGST
(b) SGST

Table 7: Refund claimed from electronic cash ledger The details of any refund claimed from Electronic Cash Ledger on the payment of TDS along with bank details is to be furnished in this table

Description	Tax	Interest	Penalty	Fees	Other	Debit Entry No
1	2	3
(a) IGST
(b) CGST
(c) SGST
Bank details ( from the drop-down menu )

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

Description	Tax paid in cash	Interest	Late Fee
1	2	3	4
(a) IGST
(b) CGST
(c) SGST

7.1 Preview Draft Return: – It is advisable to review the form and make amendments (if any) before finally submitting it. The form can be reviewed by clicking on the ‘Preview Draft’ option on the GST portal.

7.2 Acknowledgment The ARN (Acknowledgment Receipt Number) will be generated against successfully filing. The intimation is granted by tax authorities regarding the successful filing of GSTR 7 either by email or via SMS sent to the registered ID or mobile number of the applicant

8. Late fee: Late fee payable for not filing GSTR-7 return within the due dateis Rs. 100 per day under the CGST Act and Rs. 100 per day under SGST/UTGST Act (Maximum Rs. 5,000 under CGST Act and Rs. 5,000 under SGST/UTGST Act i.e. total Rs. 10,000 per return) separately – (Section 47(1) of CGST and SGST Act).

9. There is no way to revise Form GSTR 7 once it is filed. Any discrepancy, mismatch or error can be sorted in the returns filed for the consecutive month.

10. If there is no transaction in a particular month, the deductor is not required to file the return for that month

11. TDS Certificates : 

Rule 66(3)	The TDS certificate shall be made available electronically to the deductee on the common portal in FORM GSTR-7A on the basis of the return furnished
TDS certificate in form GSTR-7A is required to be issued to the deductee within 5 days of depositing the tax to the government. Failure to do so will make the person liable to pay a late fee of Rs. 100 per day up to a maximum of Rs. 5000.

11.1 TDS claim by the deductee :

Rule 66(2)

The details furnished by the deductor shall be made available electronically to each of the deductees on the common portal after filing of FORM GSTR-7 for claiming the amount of tax deducted in his electronic cash ledger after validation. Amended vide Notification No. 31/2019-Central Tax dated June 28, 2019

TDS credit received” column is specifically provided on GST portal under, Services>>Returns>>TDS  credit received, The deductee shall claim credit, in his electronic cash ledger, of the tax deducted and reflected in the return of the deductor – section 51(5) of the CGST Act. Thus, deductee can take Input Tax Credit benefit on the TDS based on Form GSTR 7 and the same can be used as payment of other tax liabilities  credit in electronic cash register only when deductor files return and not

12 Salient Features of  TDS and GSTR 7 under CGST Act 2017:

12.1 TDS is required to be deducted and deposited to the Government by a specified category of registered persons on payment made to the supplier of taxable goods & services. A person liable to deduct tax is required to register as a deductor even if he is registered separately as a supplier.

12.2 TDS is to be deducted at the rate of 2 percent on payments made to the supplier of taxable goods and/or services, where the total value of such supply, under an individual contract, exceeds two lakh fifty thousand rupees. Contract Value is to considered ( not Individual Invoice wise)  for determination of deduction Of TDS.

12.3 GST TDS is different from TDS under the Income-tax Act. If a transaction is covered under both the GST Act and Income-tax Act, both the deductions are required.

12.4 No deduction of Tax is required when the (a) Location of supplier and (b) Place of supply is different from the State of the registration of the recipient.

12.5 Refund of TDS under GST [ Section 51(8) ] If any excess amount is deducted and paid to the government, a refund can be claimed as this is not the tax amount that the government has a right on.

However, if the deducted amount is already added to the electronic cash ledger of the supplier, the amount so added cannot be get back as a refund by the deductor. Deductee can claim a refund of tax subject to refund provisions of the act. ( Proviso to Section 51(8)

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