The Deadline for Filing GSTR-7 is Today: A Checklist For Eligible Taxpayers

On December 4, 2024, the Goods and Services Tax Network (GSTN) issued an important advisory outlining new guidelines for the filing of GSTR-7 returns. Effective from October 2024, it is now mandatory for GST-registered taxpayers, specifically those who deduct Tax Deducted at Source (TDS), to follow a sequential filing process. This new rule aims to streamline the process and enhance compliance with GST regulations. Taxpayers who have not deducted TDS for a specific period are still required to submit a Nil return to maintain compliance.

Sequential Filing of GSTR-7 Returns

The sequential filing of GSTR-7 returns, effective from the October 2024 tax period, requires taxpayers to submit their returns in chronological order, starting with October 2024. This new process was introduced through Notification No. 17/2024-Central Tax, issued on September 27, 2024. Taxpayers are now obligated to file their returns in the exact sequence, ensuring that they comply with this updated structure. If no TDS was deducted during a particular month, the taxpayer must file a Nil return for that period.

This requirement applies to all entities mandated to deduct TDS, such as government departments, local authorities, and certain private businesses. The filing of GSTR-7 must include information on TDS deductions, payments made and due, and any refund claims. It is also important for taxpayers to ensure the accuracy of their deduction records before submitting the returns.

Who Must File GSTR-7 and Key Takeaways:

GSTR-7 returns must be filed by GST-registered individuals responsible for TDS deduction when the value of taxable supplies exceeds ₹2.5 lakh. This applies to both the government and designated private entities. The return must be filed monthly, and any errors or omissions in the filing process may lead to penalties, late fees, or interest on unpaid taxes.

In addition, the filing of GSTR-7 is mandatory even for those months when no TDS deduction has been made. A Nil return must be submitted to ensure compliance. The budget proposal for 2024 further reinforced the need for monthly filing by TDS deductors, aligning with the GST Council’s recommendation during its 53rd meeting.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.