Know all About GSTR-7 and GSTR-7A

Last Updated On: Jan. 26, 2021, 8:35 p.m.
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KNOW ALL ABOUT GSTR-7 AND GSTR-7A

What is GSTR-7?

GSTR 7 is a return to be filed by the persons who are required to deduct TDS (Tax deducted at source) under GST. GSTR 7 contains the details of TDS deducted, TDS liability payable and paid, TDS refund claimed if any etc.

GSTR-7 shows the details of TDS deducted, amount of TDS paid and payable, any refund of TDS Claimed. The deductee i.e. the person whose TDS has been deducted can claim the input credit of such TDS deducted and utilize it for the payment of output tax liability. The details of TDS deducted is available electronically to each of the deductees in PART ‘C’ of Form GSTR 2A after the due date of filing of Form GSTR 7. Also, the certificate for such TDS deducted shall be made available to the deductee in Form GSTR 7A on the basis of the return filed in GSTR 7.

 

Who is required to TDS under GST?

As per GST law following people/entities need to deduct TDS :

1.      A department or establishment of the Central or State Government, or

2.      Local authority, or

3.      Governmental agencies, or

4.      Persons or category of persons as may be notified, by the Central or a State Government on the recommendations of the Council.

As per Notification No. 33/2017 – Central Tax, 15th September 2017

The following entities also need to deduct TDS-

  • An authority or a board or any other body which has been set up by Parliament or a State Legislature or  by a government, with 51% equity ( control) owned by the government
  • A society established by the Central or any State Government or a Local Authority and the society is registered under the Societies Registration Act, 1860
  • Public sector undertakings
  • The above deductor is required to TDS where the total value of supply under the contract exceeds Rs 2.5 Lakhs. The rate for TDS is 2% (CGST 1% + SGST 1%) in case of intrastate supply and 2 % (IGST) in case of interstate supplies.
  • However, the TDS will not be deducted when the location of the supplier and place of supply is different from the registration place (State) of the recipient.

 

What is GSTR-7A?

Form GSTR-7A is the system generated GST Form that is acquired by the deductor once he/she has correctly filed GSTR-7.

GSTR-7A is an auto-populated form that gives the basic information furnished by the deductor at the time of filing form GSTR-7.

 

Who needs to get GSTR-7A?

The deductor/supplier of goods and/or services who is deducting the TDS amount needs to get this TDS Certificate (Form 7A).

 

FAQ’S ON GSTR-7 AND GSTR-7A:

 

1. By when do I need to file the Form GSTR-7?

Answer: The due date for filing Form GSTR-7 is the 10th day of the succeeding month.

 

2. From where can I as Deductor file Form GSTR-7?

Answer: Form GSTR-7 can be accessed on the GST Portal, post login in the Returns Dashboard by the taxpayer.

The path is Services > Returns > Returns Dashboard.

 

3. Is there any Offline Tool for filing Form GSTR-7?

Answer: Yes. GSTR 7 return can be filed through offline mode also.

 

4. Can the date of filing of Form GSTR-7 be extended?

Answer: Yes, the date of filing of Form GSTR-7 can be extended by Government through notification. Pre-conditions of Filing Form GSTR-7

 

5. What are the pre-conditions for filing Form GSTR-7?

Answer: Pre-conditions for filing of Form GSTR-7 are:

  • Tax Deductor should be registered as Tax Deductor and should have a valid/active GSTIN.
  • Tax Deductor should have a valid User ID and password.
  • Tax Deductor should have active & non-expired/ revoked digital signature (DSC) in case return is filed through DSC.
  • Tax Deductor has made the payment or credited the amount to the supplier’s account.

 

6. How can I discharge my TDS liability?

Answer: TDS liability can be discharged through Electronic Cash Ledger only at the time of filing return.

 

7. Can the deductee take action on the TDS credit declared by me?

Answer: The deductee can accept/ reject the TDS details auto-populated to TDS and TCS Credit received a table of his/her return. Taking action by deductee is mandatory for crediting the amount of TDS to the cash ledger.

 

8. When TDS amount will be credited to the deductee’s Electronic Cash Ledger?

Answer: TDS amount will be credited to deductee’s Electronic Cash Ledger only after his/ her accepting of TDS and TCS credit received (which is auto-populated on the filing of returns by the deductor) and filing of this relevant form.

 

9. What will happen if the TDS credit entry is rejected by the deductee?

Answer: TDS credit entries rejected by the deductee will be auto-populated into Table 4 of Form GSTR-7 and the relevant details will be required to be amended by the deductor in Form GSTR-7 of the next tax period. Post correction of such details in Form GSTR-7, the data will automatically flow to the concerned GSTIN (supplier) for accepting or rejecting it. This process will be repeated until TDS details are accepted by the counter-party.

 

10. What will happen if the TDS credit entry is rejected by the deductee?

Answer: The TDS credit entries rejected by the deductee will be auto-populated into Table 4 of Form GSTR-7 of the next tax period of the deductor and the relevant details will be required to be amended by the deductor. Post correction of such details in Form GSTR-7 by the deductor, the data will automatically flow to the TDS/TCS credit form of the deductee, for accepting or rejecting the same. This process will be repeated until TDS details are accepted by the deductee.

Note: If details are auto-populated in table 4 under the ‘rejected by deductee’ tab interest will be levied on the differential amount, if the TDS amount is increased.  

 

11. I made no deductions during the tax period, however, there is a rejected record in that tax period, do I need to file the return?

Answer: No, it is not necessary to file a return for a tax period in which you have not made any deductions, even if there are rejected records in that month. The record will be auto-drafted in the subsequent tax period for which you intend to file the return, wherein you would be able to amend the rejected records in Table-4 of Form GSTR-7.

For example: Let us assume that the deductor doesn’t have any TDS deductions for the month of April, 2020, but there is a rejected record in that tax period. In such a case, it is not necessary to file Form GSTR-7 for April 2020 by the deductor.

In case the deductor has a tax liability for the month of May 2020, then in that tax period, the deductor can take action on such rejected records and file Form GSTR-7 for May 2020.

 

12. Is there any late fee or interest levied on the filing of GSTR-7 return beyond the due date?

Answer: Yes, late fees and interest are charged on the filing of Form GSTR-7 beyond the due date. However, Form GSTR-7 need not be filed, if you have not deducted tax at source in a particular tax period.

For example: Let us assume that the deductor doesn’t have any TDS deductions for the month of April 2020, in such case it is not necessary to file Form GSTR-7 for April 2020.

 

13. How can I offset my liabilities?

Answer: You can offset the liabilities by clicking table 5&6. Payment of Tax tiles.

If the available cash balance in Electronic Cash Ledger is less than the amount required to offset the liabilities, then an additional amount of cash payment will be required. You may create a challan for that additional amount of cash required directly by clicking on the CREATE CHALLAN button at the bottom of page.

If the available cash balance in Electronic Cash Ledger is more than/equal to the amount required to offset the liabilities, no additional cash is required for offsetting liability.

 

14. What are the modes of signing Form GSTR-7?

Answer: You can file Form GSTR-7 using DSC, or EVC.

Digital Signature Certificate (DSC)

Digital Signature Certificates (DSC) are the digital equivalent (that is electronic format) of physical or paper certificates. A digital certificate can be presented electronically to prove one’s identity, to access information or services on the Internet, or to sign certain documents digitally. In India, DSC are issued by authorized Certifying Authorities.

The GST Portal accepts only PAN based Class II and III DSC.

To obtain a DSC, please contact any one of the authorized DSC-issuing Certifying Authorities: http://www.cca.gov.in/cca/?q=licensed_ca.html

Electronic Verification Code (EVC)

The Electronic Verification Code (EVC) authenticates the identity of the user at the GST Portal by generating an OTP. The OTP is sent to the mobile phone number of the registered mobile phone of Authorized Signatory filled in part A of the Registration Application.

 

15. Can I preview the Form GSTR-7 before filing?

Answer: Yes, you can see the preview of Form GSTR-7 by clicking on ‘Preview Draft GSTR 7’ before filing on the GST Portal.

Post Filing of Form GSTR-7 

 

16. What happens after Form GSTR-7 is filed?

Answer: After Form GSTR-7 is filed:

ARN is generated on successful filing of Form GSTR-7 Return.

SMS and email are sent to the applicant/TDS deductor on his/her registered mobile and email id.

The details provided in Table 3 and Table 4 are sent to the deductee, the counter-party for action (Accept/Reject).

The return will become available in the Dashboard of the tax officer for view.

 

17. What is Form GSTR-7A?

Answer: Form GSTR-7A is a system-generated TDS Certificate that is generated once the deductor furnishes a return in Form GSTR-7 on the GST Portal and the deductee accepts the details uploaded by the deductor and files his return. This TDS Certificate will be available for both Deductor and Deductee.

 

18. How can I download the TDS certificate?

Answer: To download the TDS certificate, access the http://www.gst.gov.in URL. Login to the GST Portal with valid credentials. Navigate to Services > User Services > View/Download Certificates option.  

 

19. I have more than one certificate available for download under GSTR-7A certificates. Do I need to download them individually?

Answer: Yes, you need to download them individually for each GSTIN.

 

20. What is TDS Certificate?

Answer: A TDS certificate is a certificate generated in Form GSTR-7A on the basis of information furnished in return by the Deductor in his Form GSTR-7.

 

21. How many TDS Certificates are issued per GSTIN?

Answer: A single TDS certificate is issued per GSTIN for all the supplies, on which tax has been deducted for every GSTR-7 return filed.

 

22. Is the signature of Tax Deductor required in TDS Certificate?

Answer: Form GSTR-7A is system generated TDS certificate and the signature of the Tax Deductor is not required.

 

23. What are the pre-conditions for the generation of TDS certificates in Form GSTR-7A?

Answer: Precondition for generation of TDS certificate is that deductor furnishes a return in Form GSTR-7 on the GST Portal and the deductee accepts the details uploaded by deductor and files his return.

 

24. Do I as a taxpayer have to file Form GSTR-7A?

Answer: No, you don’t have to file Form GSTR-7A.

 

25. Can I as a taxpayer (Deductor or Deductee) download and keep a copy of my TDS Certificate for future reference?

Answer: Yes, you can view and/or download TDS Certificate in post-login mode on the GST portal.

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