For the TDS deducted under GST, the tax deductor is required to file GSTR-7, here are the various details that you need to know about GSTR-7. Generally, the tax deduction certificate is made available electronically by the tax deductor to the deductee in the Form GSTR-7A on the basis of GSTR-7.
Who is required to GSTR-7?
The registered taxpayers, who deduct tax while making payments to the vendors/suppliers against the inward supplies received are required to file GSTR-7. GST Return-7 contains the particulars of those transactions where a tax was deducted by the deductor at source along with the complete details of his/her suppliers.
Who is supposed to deduct TDS?
According to section 51 of the CGST Act, here are the following establishments as well as persons that are required to deduct TDS.
- Governmental Agencies
- Local Authorities
- A department or an establishment of the Central or State Government
- Persons or category of persons as may be notified on the recommendation of the council by the state or central government.
According to the notification no 33/2017, here are a couple of entities and establishments that are required to deduct TDS.
- Public sector undertakings
- A society established by the Central or Government or a local authority
- An authority or board set up by the parliament or the Central or State Government with equity holding of 51% or more.
When a tax deductor is required to file GSTR-7?
A tax deductor is required to file GSTR-7 after the end of the particular month. The last date to file GSTR-7 is 10th of the subsequent month.
What is the Penalty for late filing of GSTR-7?
If the taxpayer fails to file GST Return-7 by the due date, then he/she will have to pay a penalty of Rs. 200 per day, starting from the next day of the last date of filing return. The amount of penalty can go up to Rs. 5000. Moreover, the taxpayer will have to pay interest at the rate of 18% p.a., which will be calculated by the taxpayer on the amount that he/she is supposed to pay, the interest will be charged from the next day of the due date until the date on which the taxpayer files GSTR-7.