Summary: Every registered tax payer who is required to deduct TDS (Tax Deducted at Source) under GST (Goods and Services Tax) needs to file a monthly return - GSTR-7. GlobalLinker member Mudit G explains the process of filing GSTR-7 and the extension in its due date.

The GST office has brought back the arrangement of Tax Deduction at Source (TDS) and Tax Collection at Source (TCS), under sections 51 and 52 separately of the CGST Act 2017. These arrangements were made viable from 1 October 2018 through a gazette notification, to update and fortify the GST tax structure and to check GST tax evasion.

The GST office has broadened the due date of GST-TDS return. The CBIC (Central Board of Indirect Taxes and Customs) has notified that due date for filing of GST TDS Return (GSTR-7) for the month of January 2019 has been extended up to 28 February 2019. It may be noted that CBIC has already extended the last date for filing GSTR-7 for the months of October, November and December 2018 up to 28 February 2019. Here is everything you need to know about GSTR-7.

1. What is GSTR-7?

GSTR-7 is a monthly GST return that is to be filed by registered persons who are supposed to deduct TDS (Tax Deducted at Source) under GST. Each taxpayer who has a GST registration and is approved to make tax deduction under GST is presently expected to play out a separate GST return filing procedure.

The people who are registered under GST as tax deductors need to document a TDS return under GST. This is otherwise called form GSTR-7.  

2. When can you file GSTR-7?

As per the GST law, the due date for GST return filing for tax deductors for a month is set on the 10th of the following month. For example, for the month of October, you have to file the return by 10th of November. 
 

3. What was the past GSTR-7 filing due-date?

The Central Board of Indirect Taxes and Customs (CBIC) had prior advised on 29th November 2018, that due date for the filing of GSTR-7 return, for the months of October, November and December 2018 separately, has been extended till 31st January 2019.
 

4. What is the extended GSTR-7 due date?

On 31st January 2019, the CBIC advised that the due date for GSTR-7 return, for the long periods of October, November and December 2018 separately, has been additionally extended from 31st January 2019 till 28th February 2019. The CBIC has now updated the due date for filing GSTR-7 for the period of January 2019 till 28th February 2019.  

5. What is the procedure of TDS deduction under GST?

The complete procedure for TDS under GST is explained below  

Step 1: The GST tax is deducted while crediting the payment to the supplier. Now here it must be noted that TDS is deducted at the rate of 2% as IGST (Integrated Goods and Services Tax) if there is an interstate supply and TDS is deducted at the rate of 1% as SGST (State Goods and Services Tax) and 1% as CGST (Central Goods and Services Tax) in case of intrastate supply.  

Step 2: Next step is TDS payment to the government after TDS deduction. This TDS amount is supposed to be submitted to the government before 10 days of the month end during which the TDS Deduction was made.  

Step 3: The third step is the TDS return filing. As per section 51 of CGST Act 2017, all tax deductors under GST is required to file a TDS return under GST, which is also known as form GSTR-7. This GST return must be filed and furnished till 10th of the next month from the exact date when a GST tax deduction was done.  

Step 4: Fourth step is TDS certificate. As a TDS deductor under GST, you will now be required to furnish a system generated TDS certificate. This certificate of TDS is generated in the form of GSTR-7A. TDS certificate must be given to the TDS deductee till 5 days from the date when the TDS amount under GST was actually credited to the government, i.e. when the GSTR-7 return was filed by the TDS Deductor.

The process of TDS under GST has to be followed systematically and timely. Failing to do so can lead to penalties at each stage and of course, a lot of confusion at your end. So, it is wise to file the GSTR-7 on time.

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