A Comprehensive Guide to Filing GSTR-7 on the Official GST Portal • WFYI

India's Goods and Services Tax (GST) framework requires businesses and entities deducting tax to submit various returns, among which GSTR-7 is particularly important. This guide provides a detailed walkthrough of the procedures involved in filing GSTR-7 through the official GST portal.

Who is Required to File GSTR-7?

Form GSTR-7 is a mandatory return for entities responsible for deducting Tax Deducted at Source (TDS) under GST. This category generally encompasses:

Government departments or establishments
Local authorities
Governmental agencies
Other entities specifically notified by central or state governments following GST Council advice

It also includes public sector undertakings, government-established societies, and bodies formed by legislative acts with substantial government equity. These specified entities must deduct TDS from payments made to suppliers of taxable goods or services when the transaction value exceeds INR 2.5 Lakhs. This mechanism ensures effective tax compliance and collection. For intrastate supplies, the TDS rate is 2% (1% CGST + 1% SGST), while for interstate supplies, it is 2% (IGST). Importantly, TDS is not applicable if the supplier's location and the place of supply differ from the recipient's state of registration.

Step-by-Step Guide to Filing GSTR-7 on the GST Portal

Below is a sequential guide to successfully filing Form GSTR-7 on the official GST Portal.

I. Begin and Progress to the GSTR-7 Form Page

To commence the filing process, visit the official GST website. Log in using your registered user credentials. After a successful login, navigate to the 'Returns Dashboard' by selecting 'Services' > 'Returns'.

Selection of the Filing Period

On the 'File Returns' page, specify the appropriate 'Financial Year' and 'Return Filing Period' (typically the month). After making these selections, click the 'SEARCH' button to proceed.

Navigating to the GSTR-7 Form

Once the updated 'File Returns' section loads, locate the GSTR-7 tile and click on 'PREPARE ONLINE'. A crucial message might appear; ensure you review this information.

Form Displayed

Following these steps, you will access the primary 'GSTR-7 - Return for Tax Deducted at Source' page, where you can commence filling out the form.

II. Inputting Details Across Different Tiles

This section details how to accurately input information into the various tiles of the GSTR-7 form.

5(a) Inputting Information in ‘Table 3. Details of the tax deducted at source’

To record the specifics of the tax deducted, input the necessary information into ‘Table 3. Details of the tax deducted at source’.

Accessing the TDS Details Section

Start by clicking the ‘3. Details of the tax deducted at source’ tile, which is dedicated to entering specific TDS information.

Adding New Entries

Click the ‘ADD’ button to initiate the entry of new data.

Specifying the Deductee's GSTIN

Enter the deductee's Goods and Services Tax Identification Number (GSTIN) into the designated 'GSTIN of Deductee' field.

Entering Payment Details

Provide the total payment amount disbursed to the deductee, from which tax was withheld.

Understanding Tax Breakdown

If the state codes for the deductor and deductee are distinct, you must provide details under Integrated Tax (IGST). Specifically, if the supplier's GSTIN differs from the place of supply, IGST applies as TDS. If both share the same GSTIN, TDS will be applicable as Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST). However, if the supplier's state and the place of supply are identical, but the deductor is located in a different state, no TDS deduction is necessary.

Identifying Same State Code Scenario

When both the deductor and deductee operate within the same state code, the GST portal facilitates the entry of Integrated GST (IGST), Central GST (CGST), and State GST (SGST). It is important to remember that for parties located in a Special Economic Zone (SEZ), IGST is always applicable, regardless of the place of supply.

Saving the Information

Once all information is accurately entered, click the ‘SAVE’ button.

Confirmation and Additional Entries

A confirmation message will indicate that the TDS details have been successfully added. Ensure you enter distinct TDS information for each individual deductee. For convenience, you can adjust the number of records displayed via a dropdown menu and use the search function to find specific GSTINs or deductee names.

Editing or Deleting Added Information

The 'Actions' column provides options to edit or delete existing details as needed. To return to the primary GSTR-7 Dashboard, click the ‘BACK TO GSTR-7 Dashboard’ button.

Viewing Updated Dashboard

Upon returning to the GSTR-7 Dashboard, the ‘3. Details of the tax deducted at source’ section will display the total count of TDS entries, the aggregate tax amount, and the total sum remitted to the deductee.

5(b) Accessing the Amendments Section

Initiate the amendment process by selecting the ‘4. Amendments to TDS Details’ box. This section enables the revision of TDS information from prior tax periods and adjustments to any TDS details rejected by the deductee.

5.2 (a) Using the 'Uploaded By Deductor' Tab

This area allows for the amendment of transactions from previous tax periods originally uploaded by the Deductor. If the deductee has not yet acted upon these details, the deductor can make changes under the ‘Uploaded by deductor’ tab. Key points include:

Any revisions to TDS details initially recorded in Table 3 of a previous return must now be reported in Table 4.
Once a deductee accepts TDS details, no further amendments are permitted.
Information rejected by the deductee will be available under the ‘Rejected by Deductee’ tab within Table 4.
While the original tax period, financial year, and deductee's initial GSTIN are fixed, the deductor can modify the deductee's GSTIN, the adjusted amount, and the relevant tax columns.

Making the Amendments

Choose the relevant financial year and month from the dropdown menu. Enter the GSTIN of the deductee from the earlier tax period requiring revision into the GSTIN field. Click ‘AMEND TDS DETAILS’, apply the required changes, and then click ‘SAVE’.

Confirmation and Return to Dashboard

A confirmation message will verify the successful addition of TDS amendment details. You will have options to modify or remove these entries. To return to the dashboard, click the ‘BACK TO GSTR-7 DASHBOARD’ button. Additionally, scrolling right may reveal more information.

Overview on Dashboard

Upon returning to the GSTR-7 Dashboard, the ‘4. Amendments to the TDS Details’ section will display the updated TDS amendment details and their corresponding values. It is important to note that these amended details become available for the supplier to either accept or reject only after the deductor has officially filed Form GSTR-7.

5.2 (b) Addressing Rejections by the Deductee

Should any TDS credit entries be rejected by the deductee, the system automatically moves these entries to Table 4 of Form GSTR-7 in the subsequent tax period, specifically within the 'Rejected by Deductee' tab. The TDS deductor must rectify and amend these entries before submitting Form GSTR-7.

Navigating to the Relevant Tab

To initiate amendments for rejected entries, select the ‘Rejected By Deductee’ tab located under ‘4. Amendments to TDS Details’.

Editing Rejected Entries

Click the ‘EDIT’ button to make the required modifications. Only the revised fields are editable; original details cannot be altered.

Making Edits in TDS Details

Within this section, the deductor can adjust the deductee's GSTIN, the updated payment amount, and all applicable tax columns. After verifying the accuracy of these changes, click the ‘SAVE’ button to proceed.

Navigating Back to the Main Dashboard

Following edits, the entry's status will change to ‘modified’. To return to the main dashboard, click the ‘BACK TO GSTR-7 DASHBOARD’ button. For viewing specific records, utilize the ‘Records to view per page’ dropdown, and use the GSTIN or the deductee's trade/legal name for searching entries.

Overview of Updated TDS Details

When you return to the GSTR-7 Dashboard, the ‘4. Amendments to TDS Details’ section will show updated information, including newly added and modified TDS entries. It will also indicate the discrepancy between the initial and revised amounts. Once the GSTR-7 form is finalized and submitted, the deductee (or supplier) can access these modified details to either accept or reject them. Similar editing processes apply to other records within the GSTR-7 form.

III. Payment of Tax

This section outlines the process for calculating and making tax payments related to GSTR-7.

Computing the Liability

Start by clicking the ‘COMPUTE LIABILITY’ button to calculate your tax obligations and any applicable interest.

Confirmation Notification

After submitting your request, a notification will appear, confirming that the 'Compute liabilities request' has been received. You can check its status by clicking the 'Refresh' button after a short period.

Filing with Tax Payment Details

When Form GSTR-7's status shows ‘Ready to File’, the ‘5 & 6. Payment of Tax’ tile and the ‘PROCEED TO FILE’ button become available. You can either click the tile or directly use the ‘PROCEED TO FILE’ button. Note that for auto-populated details in Table 4 under the 'rejected by deductee' tab, interest on revised records applies only if there's an increase in tax liability. If filing GSTR-7 offline and the uploaded JSON file has errors, a link will appear to view an error report, guiding you to resolve issues and proceed with filing.

Checking Available Cash Balance

The portal displays the current cash balance in your electronic cash ledger, indicating funds available for tax payments. It is crucial to remember:

Liabilities can only be settled with cash.
The 'Create challan' button activates only when the Electronic Cash Ledger lacks sufficient funds.
The Declaration and Authorised Signatory fields become active only when adequate cash is available to cover existing liabilities.

For comprehensive details on payment procedures, refer to the FAQs and User Manual on Making Payments. You can also download an Excel summary of GSTR-7 details using the ‘DOWNLOAD GSTR-7 DETAILS (EXCEL)’ button or review a draft summary via the ‘PREVIEW DRAFT GSTR-7’ button.

IV. Filing Form GSTR-7 using DSC or EVC

This section details the two methods for submitting Form GSTR-7: Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

Form Declaration and Signature Selection

First, check the 'Declaration' box. Then, choose the 'Authorised Signatory' from the dropdown list and click the ‘FILE GSTR-7’ button.

Confirmation Prompt

A confirmation prompt will appear; click ‘YES’ to proceed.

Choosing the Filing Method

You will be directed to the 'Submit Application' page, where you can select your preferred filing method: Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

Filing with DSC

A window will display available digital certificates; select the appropriate one and click 'SIGN'.

Filing with EVC

An One-Time Password (OTP) will be sent to the registered email address and mobile number of the Authorised Signatory on the GST Portal. Enter this OTP and click ‘VALIDATE OTP’ to continue.

Completion of Filing

After successful validation, a confirmation message will appear, indicating that your GSTR-7 form has been filed successfully, along with an Application Reference Number (ARN). The status of your GSTR-7 return will update to ‘Filed’. Click the ‘BACK’ button to return to the dashboard.

V. Checking Debit Entries in the Electronic Cash Ledger for Tax Payment

This section guides you on reviewing the debit entries in the electronic cash ledger related to your tax payment.

Accessing the Debit Entries

To examine the specific reference ID linked to the amount debited from your electronic cash ledger, click the ‘Debit entries in the electronic cash ledger for the TDS/interest payment’ tile.

Viewing Ledger Entries

The screen will present the tax payment entries recorded in the Electronic Cash Ledger. After reviewing these details, click the ‘BACK TO GSTR-7 DASHBOARD’ button to go back to the main dashboard.

VI. Downloading the Filed Return

This section explains how to download your submitted GSTR-7 return and related details.

Downloading Options

To obtain a digital copy of your filed return, click the ‘DOWNLOAD FILED GSTR-7’ button. For details in an Excel format, select the ‘DOWNLOAD GSTR-7 DETAILS (EXCEL)’ button.

Notation on the Downloaded File

The downloaded PDF file will feature a watermark confirming it as the final Form GSTR-7. It is advisable to retain a digital copy of all filings for future reference and documentation.