GSTR-7 is filed every month by the taxpayers who deduct TDS as per the GST regulations. The GSTR 7 return form includes the details of tax deducted at source, TDS liability that has been paid or is payable, TDS refund claimed (as per Section 54 of CGST Act, 2017), interest, late fees paid/payable.
GSTR-7: Meaning & Eligibility
The return form GSTR-7 contains details about the TDS deducted, TDS payable, etc. by the deductor in a tax period. The deductees can access these details in Form GSTR-2A (auto-populated) in the common portal. The TDS amount is deducted by the deductor when making a payment to the supplier or deductee. Further, the filing of GSTR-7 allows the deductee to claim the input credit and use the deducted TDS to pay the outstanding tax liability.
The following are the entities required to deduct TDS as per Section 51 of the CGST Act, 2017.
1. An authority or a board or a body set up by the Parliament or a State Legislature or by any government, with 51% of equity owned by the government
2. A society established by the Central or State government or a Local authority registered under the Societies Registration Act, 1860
Details provided in GSTR 7
In total, GSTR-7 has eight headings that are detailed below with an explanation.
What is the due date for GSTR-7?
GSTR-7 should be filed within 10 days after the end of the month in which the TDS was deducted. For example, the due date for filing GSTR 7 for February 2019 would be March 10th, 2019.
What is the penalty for the delayed filing of GSTR 7?
The late filing of GSTR-7 results in a late fee of ₹100 under CGST and ₹100 under SGST. Hence, a total of ₹200 per day is levied if the return is not filed on or before the due date. The maximum penalty is ₹5, 000 under CGST and ₹5, 000 under SGST (₹10, 000). Apart from the late fee, an interest of 18% per annum is also applicable from the next day of the due date of filing return to the day of making the actual payment.