Comprehensive Guide to Utilizing the GSTR-7 Offline Tool

Businesses registered under GST that are mandated to deduct Tax Deducted at Source (TDS) must submit their returns using Form GSTR-7. This form provides comprehensive information regarding TDS deductions, outstanding TDS liabilities, and any eligible TDS refunds. This guide outlines the detailed process of preparing and uploading GSTR-7 data using the official offline utility.

Who Can Use the GSTR-7 Offline Tool?

The GSTR-7 offline utility is an Excel-based application designed to facilitate return preparation in a disconnected environment. Tax Deducted at Source (TDS) deductors and GST professionals can leverage this utility to record:

• Transactions falling under the TDS provisions of Section 51 of the CGST Act, which are reported in Table 3.
• Any required amendments to previous details, which are entered in Table 4 of GSTR-7.

System Requirements for the GSTR-7 Offline Utility

To successfully use the offline tool, taxpayers need to ensure their system meets the following specifications:

• Operating System: Windows 7 or a later version.
• Spreadsheet Software: Microsoft Excel 2007 or a more recent edition.

Steps to Download the GSTR-7 Offline Tool

To obtain the GSTR-7 offline utility, follow these steps:

1. Access the official GST portal.
2. Go to the Downloads menu, then select Offline Tools, and finally GSTR 7 Offline Utility.
3. On the GSTR-7 returns page, locate and click the Download link.
4. Acknowledge the warning message by clicking Proceed. This action will initiate the download of a zipped GSTR-7 offline utility folder.
5. Unzip the downloaded folder to extract the GSTR7_offline_utility Excel file. Right-click the file and choose Open.
6. Upon opening, click the Enable editing button, followed by Enable content. Proceed to the Read Me tab and thoroughly review the instructions before populating the worksheets.

The GSTR-7 offline utility comprises five distinct worksheet tabs:

• Read Me
• Home
• 3 TDS
• 4 Amend
• Suppliers Master

How to Complete GSTR-7 Tables Using the Offline Utility

Follow these instructions to populate the GSTR-7 tables within the offline utility:

1. Home Tab Details: Navigate to the Home tab and input the GSTIN, financial year, and relevant tax period.
2. Suppliers Master (Optional): Move to the Suppliers Master tab. Here, you can enter the GSTIN, legal name, and trade name of the deductee. While not mandatory, updating this tab simplifies data population for tables 3 and 4. The serial number in Column B will auto-populate. To remove a row from the master sheet, select delete under the action column.
3. Validate Sheet: Click the validate sheet button. A no errors message should appear; click OK to proceed.
4. Populate 3 TDS Tab: Access the 3 TDS tab and enter the following information:

• Column B (GSTIN of the deductee): Choose the GSTIN from the dropdown list (if updated in Suppliers Master) or manually enter it. You can also copy/paste GSTINs from another sheet by toggling the enable suppliers’ master drop-down button.
• Column C (Amount paid to the deductee on which tax is deducted): Input the amount paid to the deductee. Decimal values are allowed, but negative values are not.
• Column D (Integrated Tax - IGST): Enter the IGST amount, ensuring it is 2% of the amount in Column C.
• Column E (Central Tax - CGST): Enter the CGST amount, ensuring it is 1% of the amount in Column C and equal to Column F.
• Column F (State Tax - SGST): Enter the SGST amount, ensuring it is 1% of the amount in Column C and equal to Column E.
• Column G (Action): Select Add for each new row of TDS data. The Delete option is used in subsequent uploads to remove rows from data already submitted to the portal. Columns B, C, D, E, and F are mandatory in this tab.

5. Validate 3 TDS Tab: Click the validate sheet button. If validation is successful, Column H will remain blank. If errors occur, a message will pop up, Column H will display the error, and affected cells will be highlighted in red with a yellow description box. Correct any errors and re-validate until no errors are found.
6. Populate 4 Amend Tab (If Applicable): If amendments to previous months' returns are necessary, go to the 4 Amend tab; otherwise, skip this step. Enter the following details:

• Columns B and C: Select the relevant month and year from the dropdown lists.
• Columns D and F: Select the GSTINs from the dropdown lists.
• Column G: Indicate yes or no if records were rejected by the deductee.
• Column H: Enter the amount on which tax was deducted (decimals allowed, no negative values).
• Columns I, J, K: Enter the integrated tax, central tax, and state tax amounts, ensuring the total of CGST and SGST (or IGST alone) is 2% of the amount paid to the deductee.
• Column L: If records were rejected by the deductee, specify the action taken.
• Column M (Action): Select Add for new TDS data or Delete for subsequent uploads to remove previously submitted rows. Columns B, C, D, F, H, I, J, and K are mandatory.

7. Generate JSON File:

• Return to the Home tab and click get summary.
• A summary of the details entered in Table 3 and Table 4 will be displayed.
• Click generate JSON file to upload.
• In the Save As window, enter a file name and click Save.
• A confirmation message will appear, indicating the file has been saved. Click OK.

Uploading the Generated GSTR-7 JSON File

After generating the JSON file, proceed with uploading it to the GST portal:

1. Log In: Access your account on the GST portal.
2. Navigate to Returns Dashboard: Go to Services > Returns > Returns Dashboard.
3. Select Period: On the file returns page, choose the appropriate financial year and return filing period, then click Search.
4. Prepare Offline: Click the prepare offline button on the GSTR-7 tile.
5. Upload JSON: In the upload section, click choose file. Browse to and select your generated JSON file, then click Open. A green confirmation message will indicate a successful upload.
6. Preview Draft: After successful validation, click the preview draft GSTR-7 button on the returns page.
7. Review Draft PDF: A draft PDF with a watermark will be displayed. Carefully review all details before proceeding with filing.
8. File Return: Click proceed to file, then complete the filing process using either DSC (Digital Signature Certificate) or EVC (Electronic Verification Code).

Resolving Errors with the GSTR-7 Offline Tool

A. Obtaining the Error Report

If errors occur during the JSON file upload, you can use the offline tool to fix them:

1. Check Upload Status: In the upload history table, a processed with errors status indicates issues.
2. Generate Error Report: Click the generate error report link. A confirmation message will appear, and the status will update.
3. Download Error Report: Once the report is generated, click the Download error report link to get the zipped error report.
4. Unzip File: Unzip the downloaded folder and save the JSON file to your system.

B. Reviewing the Downloaded JSON Error File

To open and correct the error file:

1. Open Error JSON: On the Home tab, locate the error file handling section and click the open downloaded error JSON file button.
2. Select Error File: A file dialog box will appear. Navigate to your downloaded error file and click OK.
3. Import Confirmation: A message confirming successful import will pop up; click OK.
4. Correct Entries: Go to the 3 TDS and 4 Amend tabs. The entries that failed validation will be displayed, along with remarks in the GST portal validation errors column. Correct these entries as advised.
5. Re-validate: After making corrections, click the validate sheet button again. A successful validation message will appear; click OK.

Frequently Asked Questions on the GSTR-7 Offline Utility

Can GSTR-7 be filed completely offline?

No, the actual filing of the GSTR-7 return can only be done online via the GST portal. The offline tool is exclusively for updating details in Table 3 and Table 4; payment and final submission functionalities remain online.

Does the offline utility automatically populate the taxpayer's name based on GSTIN?

No, the offline utility lacks a direct connection to the GST portal's database, so it cannot automatically retrieve and display the taxpayer's name based on the entered GSTIN.

What is the maximum number of rows allowed for TDS details of suppliers in the offline utility?

The offline utility supports a maximum of 10,000 rows for entering TDS details related to suppliers.

If a taxpayer has made payments for multiple products to a single supplier, should these be reported in separate rows?

No, the total amount paid to a single supplier, even for different products, should be consolidated and reported in one row. Duplicate GSTIN entries across multiple rows are not permitted.

Does the downloaded JSON error file include all entries from the original upload?

No, the downloaded JSON error file only contains the specific entries that failed validation or had errors during the upload process to the GST portal.

Can the offline utility detect all possible errors in the Excel file?

The offline utility performs limited validations, such as checking GSTIN structure, tax computation, and duplicate entries. It cannot validate all potential errors as it does not have real-time connectivity with the GST portal.