GSTR-7 filing deadline: December 10 is the last day for these registered taxpayers; check details

GSTR-7 returns: The Goods and Services Tax Network (GSTN) has issued a reminder for all GST-registered taxpayers who are required to deduct Tax Deducted at Source (TDS) under the GST law, emphasising the mandatory filing of GSTR-7 returns by December 10, 2024. 

This obligation applies to entities such as government departments, local authorities, and certain private businesses that meet the criteria for TDS deduction under GST. 

The GSTN issued the advisory on December 4, 2024, stating that the sequential filing of GSTR-7 is now compulsory. This new requirement is applicable for tax periods beginning in October 2024. Sequential filing entails submitting returns in sequential order, starting with October 2024. Taxpayers who have not deducted TDS for a specific period are obligated to file a Nil return for that month to maintain compliance.

Who should file GSTR-7?

Persons registered for GST are tasked with deducting TDS when the value of taxable supply goes beyond Rs 2.5 lakh. If a taxpayer is registered for TDS under GST in November 2024, they are not required to file GSTR-7 for October 2024. To fulfill the filing obligations, taxpayers must ensure the accuracy of their deduction records before submission. 

In the Budget 2024, the Centre's finance minister proposed changes to section 39, requiring TDS deductors to file returns monthly. This recommendation was also echoed by the GST council during its 53rd meeting.

Key points to note

The GSTR-7 return is a monthly requirement for all registered individuals responsible for deducting Tax at Source (TDS) under GST. It must include details of TDS deducted, TDS payments made and due, and any refund claims.

The filing of GSTR-7 is mandatory for all GST-registered individuals who are responsible for deducting TDS according to the relevant GST laws.

In accordance with GST regulations, TDS is deducted by designated buyers prior to disbursing payment to the supplier, provided that the cumulative value of taxable goods, services, or both surpasses Rs 2.5 lakh.

Entities, such as government departments, local authorities, and certain private businesses, must report all TDS deductions made during the tax period through this return. Missing this deadline could result in penalties, including late fees and interest on unpaid tax amounts.

As per the advisory: "Multiple tickets have been received regarding sequential filing of return in Form GSTR-7. Taxpayers are referencing FAQs for the same, wherein 'it is not mandatory' is mentioned. To clarify, it is to inform that following changes have been introduced in the return filing process for GSTR-7 with effect from 01.11.2024 onwards."

Sequential Filing of GSTR-7: "As per Notification No. 17/2024-Central Tax, dated 27th September 2024, effective from the 01.11.2024, GSTR-7 filing has been made sequential from the October tax period. Hence, GSTR-7 return is to be filed in chronological order, beginning with the return period of October 2024. It is pertinent to mention that for a month in which no deduction has been made, deductors need to file NIL return for the same month."

The recent advisory requires GST registered taxpayers to submit their GSTR-7 by the deadline (December 10, 2024), regardless of whether or not they deducted TDS during the specified tax period. It is important to note that those who did deduct TDS during the tax period must also file a GSTR-7 return.