Everything You Need to Know About GSTR-7 Form
All the registered TDS deductor needs to file GSTR-7.
List of entities who needs to register as TDS Deductor
i. Central Government or State Government / UT Government departments or establishments
ii. Any other government agencies
iii. Local authorities
Rate of TDS
The above-mentioned entities need to deduct 1% TDS for CGST and 1% for SGTS/UTGST for the payment made or credited and where the value of goods excess 2,50,000 INR mark. This takes us to the next part of the article.
How to determine the value of supply for TDS?
For TDS the value of supply shall be the invoice value excluding CGST, SGST/UTGST, and CESS.
The due date for filing GSTR-7
The due date for the payment of tax and filing GSTR-7 is the 10th of every succeeding month. After the filing of GSTR-7, the aforementioned entities need to issue the TDS certificate. This takes us to the next part of the article that is the issuance of TDS certificate.
TDS Certificate
TDS deductor shall furnish the TDS certificate stating the value of the contract, deduction rate, deducted value, amount paid to the government. To issue TDS Certificate, the TDS deductor need to furnish GSTR-7A within 5 days from the daily amount is deducted to the government.
Penalty for filing GSTR-7 after due-date
If the GSTR-7 is not furnished within the prescribed time-frame then 200 INR per day penalty will be applicable. This penalty amount consists of 100 INR CGST penalty and 100 INR SGST/UTGST penalty. Moreover, the maximum penalty of 5000 INR can be levied.
In addition to the penalty, the TDS deductor needs to pay interest at 18% per annum that has to be determined on the tax amount that is due or has to be paid. Late fees shall be calculated from the very next day of the GSTR-7 due date.
Note: No late fees are applicable in the case of IGST.
Is it possible to amend GSTR-7?
The answer is no, it is not possible to amend GSTR-7 in the same tax period in which it is filed. However, in a case, if you want to amend or revise anything you can do it in the next GSTR-7. To understand this let us take an example Mr. A filed GSTR-7 in January, he found a mistake in it. So, he can amend the same in the later month GSTR-7.
Details that need to be furnished in GSTR-7
The taxpayer needs to furnish the following details in GSTR-7 at the time of filing it:
i. GSTIN
ii. Deductor’s legal name
iii. TDS details such as the amount of tax deducted at source
iv. Any amended in the previously filed GSTR-7
v. TDS deducted and paid
vi. Late fees and interest paid or yet to be paid
vii. Any refund made from electronic cash ledger
Viii. Debit entries for the interest paid through electronic cash ledger
After furnishing all the above information either the taxpayer or his/her representative needs to digitally sign the return to declare the authenticity of the data.
