GSTR 7 - GST Return for TDS refund
GSTR 7 is a return that has to be filed by taxpayers who wish to deduct their TDS from GST returns.
What is GSTR 7?
The Goods and Services Tax Return7 is a document or statement that is filed by those taxpayers who deduct tax while making payments to vendors/suppliers towards the inward supplies received. This return must contain the details of those transactions where tax was deducted by you at source along with the complete details of your suppliers.
- For the taxpayers, who have principal place of business in UT of Ladakh, the due date for filing FORM GSTR 3B for July 2019 to January 2020 has been extended to 24 March, 2020. A similar extension has been recommended for FORM GSTR 1 and GSTR 7.
When to file GSTR-7?
- The GSTR-7 for a particular month can be filed upon the completion of that month.
- The last day for filing this return is before the 10th of the following month. (E.g.: If you are filing the GSTR-7 for March 2018 then, you have to file it before the 10th of April 2018.)
Prerequisites for filing GSTR-7
- To file the GSTR-7:
- You must be a registered tax payer under the GST with a 15 digit PAN based GSTIN.
- The aggregate turnover of your business should be greater than 20 lakh rupees.
- You must capture the details of all those transactions where you deduct tax and pay it on behalf of your vendors (while giving them IT credit).
How to file GSTR 7
The GSTR 7 format collects information relevant to taxpayer’s who wish to deduct TDS from GST returns. Let’s take a look at each section in detail.
- GSTIN – Here you have to specify your unique PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN).
- Name of the Deductor – This field should contain the name of the registered tax payer for your business.
- Return Period – Specify the month, year and the period for which you are filing the GSTR-7.
- TDS Details –
- Here, you are required to record the GSTIN of the parties involved in TDS transactions along with the complete details of such transactions (contract details, invoice-level data, dates, payment details and TDS amounts). Based on the above information, the GST payable can be calculated under all 3 components (IGST, CGST and SGST).
- You can amend/modify the details of the tax deducted at the source by you during earlier tax periods using the Section 4A of the GSTR-7.
- Liability Payable and Paid – This section will contain the details of the GSt that you have to pay for this tax period. This also includes the details of any GST that has already been paid by you along with details of late fees/ penalities paid (if any).
- Refund Claimed – This section will capture any tax refunds received by you for such transactions.
At the end of the return you have sign a declaration electronically (just make sure that everything is true and error-free before you do).