GSTR-7 Filing: Who Should File, Format, Due Dates, Penalties & Rules Explained

Meet Ravi Sharma, a sharp, seasoned HR consultant based in Delhi. In April 2025, Ravi hires multiple independent recruiters for a short-term project and pays them ₹5 lakhs. Since he is registered under GST, he deducts ₹25,000 as TDS, following GST rules. Here's the twist: Ravi must file GSTR-7 and deposit the deducted TDS by 10 May on the GST portal. He sets a reminder on his phone, but he forgets amid back-to-back client meetings and a weekend getaway.

The result? A ticking compliance time bomb. For each day of delay, he must pay ₹200 in late fees, ₹100 under CGST and ₹100 under SGST, plus 18% annual interest on the unpaid TDS. That ₹25,000 oversight could cost him thousands more in penalties.

Like Ravi, thousands of professionals across India are waking up to the critical importance of filing GSTR-7 on time or paying the price.

What is GSTR-7?

GSTR-7 is a monthly GST return that must be filed by taxpayers who deduct Tax Deducted at Source (TDS) under the Goods and Services Tax (GST) regime. This return captures the details of:

• TDS deducted
   
• TDS payable
   
• TDS paid

The main purpose of GSTR-7 is to ensure transparency between the deductor and the deductee. Once the deductor files this return and deposits the deducted TDS, the supplier (deductee) can claim the same amount in their electronic cash ledger, which helps them settle future GST liabilities.

Example: An educational institution hires a vendor to supply educational materials worth ₹2,50,000. As per GST rules, the institution must deduct 2% GST TDS (which is ₹5,000) at the time of payment. Now, the institution must report this ₹5,000 deduction in that month’s GSTR-7 return.

Filing this ensures two things:

1. The government gets notified about the deducted TDS.
    
2. The supplier gets credited with ₹5,000 in their GST portal wallet (electronic cash ledger).

Read More – GSTR 6 Return Guide

GSTR-7 Summary Format Overview: 
 

Who Should File GSTR-7?

GSTR-7 must be filed by certain categories of taxpayers who are required to deduct tax at source (TDS) under the Goods and Services Tax (GST) system. These include:

• Government departments
   
• Local authorities
   
• Public Sector Undertakings (PSUs)
   
• Any person or category of persons specifically notified by the government

This requirement is governed by Rule 66 of the Central Goods and Services Tax (CGST) Rules.

Example: XYZ Ltd, a Public Sector Undertaking, makes supplier payments amounting to ₹10 lakh in June 2025. According to GST regulations, it must deduct 2% TDS on the payment, which is ₹20,000. XYZ Ltd is then required to file GSTR-7 for June 2025, disclosing the TDS deduction and depositing the amount with the government.

Eligibility Criteria vs Deduction Requirement:
 

Format of GSTR-7: 

GSTR-7 is structured to capture all the necessary information related to Tax Deducted at Source (TDS) under GST. The following fields are included in the return:

• GSTIN of the deductor
   
• Name of the deductor
   
• Details of TDS deducted and paid
   
• Liability details
   
• Digital signature for authentication

The return must be filed online through the official GST portal: www.gst.gov.in

Example: Consider this scenario: DEF Municipal Corporation deducts TDS from five different vendors during the month, with a total TDS amount of ₹55,000. These deductions must be accurately reported in Table 3 of the GSTR-7 return.

Below is a sample format illustrating how the data is entered:
 

GSTR-7 Due Dates:

Taxpayers who deduct TDS under GST are required to file GSTR-7 by the 10th of the month following the deduction. This ensures timely credit to the deductee and helps avoid interest or penalties.

Standard Due Date: 10th of the following month

Also Read - How to File GST Return

Example: Suppose an organisation deducts TDS from vendor payments in May 2025. In this case, the GSTR-7 return must be filed by 10th June 2025. Filing the return after this date attracts a late fee of ₹200 per day (₹100 under CGST and ₹100 under SGST), along with applicable interest on the outstanding TDS amount.

Month-wise GSTR-7 Deadlines
 

Missing the GSTR-7 deadline not only results in monetary penalties but can also delay credit for vendors, leading to strained business relationships. Timely compliance ensures transparency and smooth financial operations.

How to File GSTR-7 Online?

Filing GSTR-7 on the GST Portal is a straightforward process for taxpayers required to deduct TDS. Below is a step-by-step guide to help you complete the return accurately:

Steps to File GSTR-7:

1. Visit the official GST portal at https://www.gst.gov.in
    
2. Log in using your GSTIN (GST Identification Number) and password
    
3. Go to the Returns Dashboard
    
4. Select the relevant financial year and tax period (month)
    
5. Click on “Prepare Online” under GSTR-7
    

6. Enter the required details:

   • TDS deducted (Table 3)
   • Amendments to previous returns, if any (Table 4)
   • Interest or penalty, if applicable (Table 5)
      

7. Once all entries are complete, review and submit the return
    
8. File the return using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC)
    
9. Download and save the acknowledgement receipt for your records

Example: Ravi Sharma, an HR consultant in Delhi, logs into the GST portal on 8th May. He reports a TDS deduction of ₹25,000 in Table 3 for April. After confirming the details, he digitally signs the return using his Digital Signature Certificate (DSC) and downloads the acknowledgement as proof of timely compliance.

Filing on time ensures the deducted amount is reflected in the deductee’s cash ledger without delays or penalties.

Penalty for Late Filing of GSTR-7:

Filing GSTR-7 after the due date attracts both a late fee and interest. The consequences can be financially burdensome if ignored for long.

Consequences of Late Filing:

• A late fee of ₹200 per day (₹100 under CGST + ₹100 under SGST), subject to a maximum of ₹5,000.
   
• Interest at 18% per annum is charged on the delayed TDS payment.

Example: Ravi Sharma was supposed to file his GSTR-7 for April 2025 by 10th May. He filed it on 20th May, resulting in a delay of 10 days.

• Late Fee = ₹200 × 10 = ₹2,000
   
• Interest = ₹25,000 × 18% × 10/365 ≈ ₹123.29

This small delay cost Ravi over ₹2,100, underlining the importance of timely filing.

TDS Certificate in Form GSTR-7A:

Once the GSTR-7 return is successfully filed, the GST portal auto-generates a TDS certificate in Form GSTR-7A. This document serves as official proof of tax deduction at source.

Usage of GSTR-7A Certificate:

• The deductee (recipient of the payment) can use this certificate to claim the TDS amount as credit in their electronic cash ledger.
   
• This credit can then be used to pay future GST liabilities, offering financial relief.

Example: ABC Pvt Ltd receives a GSTR-7A certificate showing ₹6,000 TDS deducted by the Delhi Jal Board. When filing GSTR-3B, ABC Pvt Ltd uses this ₹6,000 as a cash ledger credit to reduce their tax payable.

Revision & Rectification of GSTR-7:

Unlike some returns, GSTR-7 cannot be revised once filed. However, any errors can be corrected in the subsequent month’s return using the amendment sections.

Important Points:

• No provision exists to revise a filed GSTR-7.
   
• Any error (understatement or overstatement) must be rectified in the following month’s return.

Example: XYZ Ltd filed its GSTR-7 for June 2025, reporting a TDS of ₹8,000 instead of the actual ₹10,000. In the July 2025 return, XYZ Ltd adds the remaining ₹2,000 as a correction under the amendment section to make up for the earlier discrepancy.

Refund of Excess TDS under GSTR-7:

In cases where more TDS is deducted than required, the deductor may apply for a refund, provided that the excess amount has not already been claimed by the deductee.

Conditions for Claiming Refund:

• The excess TDS must not be passed on or claimed by the deductee.
   
• Refund application must be submitted using Form RFD-01.

Example: Suppose an educational board deducts ₹55,000 instead of ₹50,000 from a contractor’s bill. If the contractor hasn’t claimed the excess ₹5,000 in their electronic cash ledger, the deductor can file Form RFD-01 to request a refund of ₹5,000.

This ensures accuracy in TDS compliance and safeguards both parties from unnecessary financial errors.

Conclusion

GSTR-7 might seem like a minor compliance requirement, but its timely filing is crucial for both deductors and deductees. From ensuring accurate TDS credits to avoiding penalties and interest, following the prescribed format and due dates matters. Use the official GST Portal and stay up-to-date with government notifications for smooth, penalty-free compliance.

FAQs

Q1. Can I revise a GSTR-7 once filed?
No, revisions aren't allowed. You must amend it in the next month’s return.

Q2. What happens if I forget to file GSTR-7?
You will be liable to pay ₹200/day in penalties, plus interest on unpaid TDS.

Q3. Can I file GSTR-7 through an offline tool?
Yes. Use the Offline Utility available on www.gst.gov.in under 'Downloads'.

Q4. Do I need to issue a TDS certificate manually?
No. GSTR-7A is auto-generated upon successful filing of GSTR-7.

Q5. How can deductees claim TDS credit?
The deducted amount is reflected in their electronic cash ledger for use in future liabilities.
 

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