A Comprehensive Guide to GSTR-7 Filing: Requirements, Deadlines, and Penalties

GSTR-7 represents a monthly tax return submitted by entities responsible for deducting Tax Deducted at Source (TDS) under the Goods and Services Tax (GST) framework. Any GST-registered entity that applies TDS must complete and submit Form GSTR-7 by the 10th day of the subsequent month. This form details the TDS amount withheld, outstanding TDS liabilities, and any TDS refunds claimed. Recent updates:

• June 7, 2025: The GSTN has implemented a rule preventing taxpayers from filing GSTR-3B more than three years after its due date, effective from the July 2025 tax period.
• May 6, 2025: The CBIC modified GSTR-7 to mandate invoice-wise reporting starting May 1, 2025 (for the April 2025 return period onwards). The GSTN will integrate this change into the portal soon, following CGST notification No. 09/2025, which amended CGST Rules.
• July 23, 2024: During the Union Budget 2024, an amendment to Section 39 was proposed, requiring TDS deductors to file monthly returns even if no deductions occurred, and establishing a provision for setting specific filing deadlines. This will take effect upon notification by the CBIC.
• June 22, 2024: The 53rd GST Council meeting recommended that all eligible taxpayers file GSTR-7 monthly, regardless of whether tax was deducted during the month. It was also suggested that no late fee apply for delayed GSTR-7 submissions. Additionally, invoice-wise details may be required within this return. These changes will be effective once formally announced by the CBIC.

What is GSTR-7?

GSTR-7 is a tax return required from those who deduct TDS under GST. It encompasses information regarding TDS amounts deducted, payable and paid TDS liabilities, and any claims for TDS refunds.

Entities Authorized to Deduct TDS under GST

According to GST legislation, the following individuals or organizations are permitted to deduct TDS:

• Central or state government departments or establishments
• Local authorities
• Governmental agencies
• Specific individuals or categories of persons as stipulated by the Central or state government based on Council recommendations

Furthermore, as per Notification No. 33/2017 – Central Tax, issued on September 15, 2017, the following entities are also authorized to deduct TDS:

• An authority, board, or other body established by Parliament, a State Legislature, or a government, provided the government holds 51% or more equity (control)
• A society formed by the Central or any state government or a local authority, registered under the Societies Registration Act of 1860
• Public sector undertakings

These deductors are obligated to deduct TDS when the total value of supply under a contract exceeds Rs. 2.5 lakh. The TDS rate is 2% (CGST 1% + SGST 1%) for intrastate supplies and 2% (IGST) for interstate supplies. However, TDS is not applicable if the supplier's location and the place of supply differ from the recipient's registration state.

Significance of GSTR-7

The GSTR-7 form is crucial as it outlines the specifics of TDS withheld, the sums paid and still owed for TDS, and any requested TDS refunds. The recipient of the deducted tax (deductee) can utilize this TDS as Input Tax Credit (ITC) to offset their output tax obligations. Information on TDS deductions is digitally accessible to each deductee in Part C of Form GSTR-2A after the GSTR-7 filing deadline. Additionally, the TDS certificate, known as Form GSTR-7A, is generated based on the filed GSTR-7 return.

GSTR-7 Filing Deadline

The deadline for GSTR-7 submission is the 10th day of the subsequent month after the relevant tax period. For example, the GSTR-7 for the month of July must be filed by August 10th.

Penalties for Non-Compliance with GSTR-7 Filing

Failure to file the GST return on time incurs a penalty of Rs. 100 under CGST and Rs. 100 under SGST, totaling Rs. 200 per day. This late fee is capped at Rs. 5,000. There is no late fee imposed on IGST for delayed submissions. In addition to late fees, interest at an annual rate of 18% is levied. This interest is calculated on the unpaid TDS amount, starting from the day following the due date until the actual payment date.

Amending GSTR-7

A GSTR-7 return cannot be directly revised once submitted. Any errors identified in a filed GSTR-7 must be corrected in the subsequent month's GSTR-7 return. For example, an error found in the October GSTR-7 would be rectified in the November GSTR-7 filing or any later return once detected.

Essential Details for GSTR-7

GSTR-7 comprises eight distinct sections:

1. GSTIN Provision: Each taxpayer receives a 15-digit, state-specific, PAN-based Goods and Services Taxpayer Identification Number (GSTIN). This GSTIN automatically populates during return submission.
2. Deductor's Legal Name: The taxpayer's name is automatically filled upon logging into the common GST portal. Any registered trade name for the person will also be auto-populated.
3. Details of Tax Deducted at Source: This section requires reporting of TDS particulars, including the deductee's GSTIN, total amount, and TDS amount (CGST/SGST/IGST) on an invoice-wise basis, applicable from the April 2025 return period onwards.
4. Amendments to Prior Period TDS Details: Corrections to data submitted in previous monthly returns can be made here by providing original and revised details, also invoice-wise from the April 2025 return period. This amendment will update the TDS certificate (GSTR-7A).
5. TDS and Paid Tax: This part necessitates specifying the integrated, central, and state tax amounts deducted from the deductee, along with the corresponding amounts paid to the government.
6. Interest and Late Fee Payable and Paid: If any interest or late fees apply to the TDS amount, these details, including the payable and paid amounts, must be entered.
7. Refund Claim from Electronic Cash Ledger: Taxpayers wishing to claim a TDS refund from their electronic cash ledger must provide these details in this section, along with bank account information for the refund credit.
8. Debit Entries in Electronic Cash Ledger for TDS/Interest Payment (auto-populated post-payment and submission): Entries in this section are automatically generated once the return is completed, and TDS and any applicable interest payments are processed.

After all particulars are accurately provided, the taxpayer must sign a declaration confirming the information's correctness. The deductor can authenticate the return using either a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC).