Think of a scenario where a large corporation contracts out facility management to a vendor. To make payment for the same, the accounts team deducts TDS under GST before releasing the full amount.
To most of us, this might look like just another line item in a slew of transactions, but behind this seemingly minor deduction, there lies a complicated network of compliance.
Enter GSTR 7, the form that makes sure that every rupee deducted is formally reported, credited to the vendor and reconciled within the GST network. For thousands of corporate entities, PSUs, and government-linked organizations, GSTR 7, in fact, is the silent engine that helps TDS operations run smoothly.
In this guide, let’s explore everything one should know about Form GSTR 7. From what GSTR-7 means to what GSTR-7 applicability looks like, from GSTR-7 format to GSTR-7 due date and late fee, let’s try and answer it all, because why not?
What GSTR-7 Means?
GSTR-7 means, or rather refers to, a monthly GST return that all individuals or organizations that need to deduct Tax Deducted at Source (TDS) should file, as prescribed under the Goods and Services Tax (GST) framework.
- Form GSTR-7 captures…
- Details of TDS deducted from payments made to suppliers
- TDS liability payable and paid
- Any TDS refund claimed
- Amendments to earlier reported TDS details
The main rationale behind GSTR-7 filing is that when the TDS gets deducted by a deductor, it is reflected properly in the GST records of the deductee (supplier), so that he/she can claim the deducted amount as credit in their electronic cash ledger. This smooth credit facility not only prevents duplication of tax but also builds great confidence between government buyers and private suppliers.
GSTR-7 Applicability: Who is Required to File Form GSTR-7?
Form GSTR-7 must be filed by all GST-registered entities required to deduct TDS as per Section 51 of the CGST Act. This includes…
- Departments or establishments of the Central or State Government
- Local authorities
- Governmental agencies
- Public Sector Undertakings (PSUs)
- Societies established by the government
- Any other persons or categories notified by the government
If you make payments over INR 2.5 lakh under a contract for taxable goods or services and are listed in any of the above categories, you fall under the GSTR-7 applicability and are legally obligated to deduct TDS and file a GSTR-7 return.
Conversely, entities registered under the GST composition scheme, non-resident taxable persons, and certain online service providers are exempt from filing GSTR-7 returns.
Key Changes Made in GSTR-7 Filing in 2025
Find all the key changes made in the GSTR-7 filing in 2025 listed below for your understanding…
- Invoice-wise Reporting Made Mandatory: From 2025, GSTR-7 must include invoice/document-wise details of TDS deducted, including the deductee’s GSTIN, invoice number, date, and value; and amount paid and tax deducted.
- Sequential Filing Enforced: You can no longer skip months. The GST portal now blocks current filings if previous GSTR-7 returns (including Nil returns) are pending.
- No Late Fee Applicable for Nil Returns: The GSTR-7 late fee has been waived for nil returns (where no TDS was deducted), effective from October 2024. However, if TDS is deducted and the return is delayed, the standard GSTR-7 late fee and interest at 18% per annum still apply.
- Multi-Factor Authentication (MFA): From 2025, all GST users must use MFA to log in to the portal, enhancing security.
What is the GSTR-7 Due Date?
GSTR-7 due date falls on the 10th day of the month following the month in which TDS was deducted. For instance, TDS deducted in June must be filed by July 10.
If the 10th of any month happens to be a public holiday, the deadline gets extended to the very next working day. However, one should always check for official notifications on the GST portal for any extensions.
What is the Penalty for Non-Filing of Form GSTR-7?
Failing to file the GSTR-7 return on time leads to both financial and compliance issues. All the major ones are listed below for your convenience…
- Late Fee: A GSTR-7 late fee of INR 200 per day, including INR 100 per day under CGST and INR 100 per day under SGST, is charged. This late fee is capped at a maximum of INR 5,000.
- Interest: 18% per annum on the TDS amount, calculated from the day after the due date until the date of payment.
Prerequisites of Filing GSTR-7 Return
Before you begin the GSTR-7 filing process, make sure you have…
- GST registration as a TDS deductor
- Valid GSTIN and login credentials are required for accessing the GST portal
- Reconciled TDS transactions
- Invoice-wise TDS details
- Sufficient cash ledger balance to pay TDS, interest, or late fees, as payment can only be made through it
- Previous returns filed, as sequential filing is mandatory, and you can only file the current month’s return if previous returns are filed properly
GSTR-7 Format: Details to Be Provided
GSTR-7 is classified into several key sections. Refer to the table given below to get a detailed look at the GSTR-7 format…
| Section | Field Name | Description of the GSTR-7 Format |
|---|---|---|
| 1 | The tax period for which the return is filed | GSTIN of the deductor (gets auto populated) |
| 2 | Legal Name | Name of the deductor (gets auto populated) |
| 3 | Month/Year | Tax period for which the return is filed |
| 4 | Details of TDS Deducted | |
| 4.1 | GSTIN of Deductee | GSTIN of the supplier (deductee) |
| 4.2 | Amount Paid to Deductee | Total payment made to the deductee |
| 4.3 | Invoice Details | Invoice number, date, and value |
| 4.4 | TDS Amount (IGST, CGST, SGST) | Amount of TDS deducted under each tax head |
| 5 | Amendments to TDS Details of Earlier Periods | Corrections/amendments to previously reported TDS details |
| 6 | TDS Paid | Amount of TDS paid (cash/credit) |
| 7 | Interest & Late Fee Paid | Interest or late fee paid, if any |
| 8 | Refund Claimed from Electronic Cash Ledger | Any refund claimed from the cash ledger |
| 9 | Debit Entries in Electronic Cash Ledger | Details of debits for TDS, interest, late fee |
| 10 | Verification | Details of debits for TDS, interest, and late fee |
Why is GSTR-7 in GST Important?
GSTR-7 is not just a routine compliance task, it’s vital for several reasons. Find some of them mentioned below…
- Legal Compliance: Filing GSTR-7 is a statutory obligation for TDS deductors under GST law.
- Credit Flow: It allows deductees to claim TDS as credit in their electronic cash ledger, lessening their net tax liability.
- Transparency: The GSTR-7 filing process makes certain that all TDS deductions get documented and reported in a timely and effective manner, reducing the risk of tax evasion.
- Financial Credibility: When GSTR-7 in GST gets filed on time, your business is bound to become more credible in the eyes of its lenders and stakeholders.
- Verification: It assists the state to confirm that the right amount of TDS is deducted and remitted to the exchequer.
How to Revise GSTR-7?
GSTR-7, unfortunately for some, cannot be revised once filed. If an error is made in the filing process, the only way to correct it is to amend the details in the GSTR-7 of a subsequent month. For instance, if an error is made in the GSTR-7 return of June, the correction should be reported in the July GSTR-7 or a later month when the error gets identified.
Here’s how you can make amendments if required…
- Go to the amendment section in the next month’s GSTR-7.
- Enter the correct details and reference the original entry that needs correction.
- The system will automatically update the records for both the deductor and the deductee.
GSTR-7 Filing Process: How to File GSTR-7 on the GST Portal
Filing GSTR-7 on the GST Portal is a systematic process. Here’s a detailed step-by-step guide…
Step 1: Visit www.gst.gov.in and log in using your GSTIN and password.
Step 2: Go to Services > Returns > Returns Dashboard.
Step 3: Choose the relevant financial year and month for which you wish to file the return, then click Search.
Step 4: In the GSTR-7 tile, click Prepare Online to open the form.
Step 5: Fill in invoice-wise TDS details for each deductee, including their GSTIN, invoice number and date, amount paid, and TDS amount (CGST/SGST/IGST).
Step 6: If applicable, go to the Amend TDS Details tab to make corrections to TDS entries from previous periods.
Step 7: Review the summary of all entries. Make corrections if necessary. Click Preview to download and verify the draft return before proceeding.
Step 8: Ensure your Electronic Cash Ledger has a sufficient balance. Pay any outstanding TDS, interest, or late fees by clicking Compute Liability.
Step 9: Click on the Proceed to File button.
Step 10: Click on the File GSTR-7 button to freeze the details.
Step 11: Finally, file the return using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
Step 12: Once you have filed GSTR-7 successfully, download the GSTR-7A TDS certificate to issue to the deductees.
GSTR-7 Nil Return: Mandatory or Not?
If no TDS is deducted in any given month, filing a GSTR-7 nil return is not mandatory, but it is highly recommended to avoid any compliance notices or confusion. Nil returns not only assist you in keeping a clean record of compliance but also act as a tip-off to the authorities that you are on top of it at all times.
For more information on GSTR-8, refer to our blog on
Common Mistakes to Avoid While Filing GSTR-7 in GST
Please don’t make the following mistakes while filing GSTR-7…
- Missing the filing deadline can result in penalties and interest.
- Not filing nil returns when no TDS is deducted. While filing GSTR-7 nil returns is not mandatory, it is good practice to keep compliance issues at bay.
- Entering incorrect GSTIN or invoice details can lead to mismatches and credit issues for deductees.
- Failing to file returns sequentially, as the portal would not allow filing if previous returns are pending.
- Not reconciling TDS transactions with accounting records can result in discrepancies and future disputes.
- Incorrectly classifying inter-state & intra-state supplies, as this leads to wrong TDS calculation.
- Not issuing the TDS certificate (GSTR-7A) to the supplier within five days of filing, as this can create issues for the deductee in claiming credit.
Difference Between GSTR-7 and GSTR-8
GSTR-7 and GSTR-8 are both GST returns related to tax collection and reporting. However, the two differ significantly when it comes to their applicability. While GSTR-7 is for TDS deductors (mainly government and public sector entities), GSTR-8 is for e-commerce operators collecting Tax Collected at Source (TCS) from their suppliers.
For an in-depth look at all the key differences between GSTR-7 and GSTR-8, refer to the table given below…
| Feature | GSTR-7 | GSTR-8 |
|---|---|---|
| Purpose | TDS return by deductors | TCS returns by e-commerce operators |
| Applicability | Govt. departments, PSUs, notified entities | E-commerce operators collecting TCS |
| Main Details | TDS deducted, paid, refund, deductee info | TCS collected, supplies via e-commerce |
| Due Date | 10th of next month | 10th of next month |
| Linked Certificate | GSTR-7A (TDS certificate) | TCS collected supplies via e-commerce |
For more information on GSTR-7 and GSTR-8, refer to our blog.
Conclusion
GSTR-7 may look like a small, insignificant form to some, but it plays a critical role in helping you stay compliant with the GST rules at play. Whether you file it directly on the GST portal or use GST software for extra ease, its prompt and accurate filing is sure to keep your tax trail clean and your business hassle-free. Compliance isn’t just a rule; it is a smart move.
FAQs
What is the turnover limit for GSTR 7?
There is no specific turnover limit for filing GSTR-7. It is compulsory for entities required to deduct TDS under GST, such as government departments, local authorities, and notified bodies, regardless of turnover.
What is the difference between GSTR-7 and GSTR-3B?
GSTR-7 is filed by entities deducting TDS under GST, while GSTR-3B is a monthly summary return filed by regular taxpayers to report tax liabilities and ITC.
What is the last date for GSTR-7?
The last date for filing GSTR-7 is the 10th of the following month.
Is GSTR-7 compulsory?
Yes, GSTR-7 is compulsory for all entities that are required to deduct TDS under GST, such as government departments, local authorities, and notified bodies, even if no TDS is deducted in a month.
Is GSTR-7 monthly or yearly?
GSTR-7 is a monthly return, filed by the 10th of the following month by entities deducting TDS under GST.
Is a late fee applicable on GSTR-7?
Yes, a late fee of INR 200 per day (INR 100 under CGST and INR 100 under SGST) is applicable for filing GSTR-7 after the due date. However, no late fee is charged for Nil GSTR-7 filings from 2024 onwards.
Can GSTR-7 be filed quarterly?
No, GSTR-7 cannot be filed quarterly. It is a monthly return that must be filed by the 10th of every month, even if no TDS is deducted during that period.
Is separate registration required for GSTR-7?
Yes, separate GST registration is required for entities that are liable to deduct TDS under GST and file GSTR-7. This registration is distinct from regular taxpayer registration and is mandatory for compliance.
How to generate GSTR-7?
To generate GSTR-7, log in to the GST portal, go to the Returns Dashboard, select GSTR-7, enter TDS details, and file using DSC or EVC.
Can we file the GSTR-7 return without CA?
Yes, you can file a GSTR-7 return without a Chartered Accountant using the GST portal
Written by
Yashika Aneja 
Yashika Aneja is a Senior Content Writer at Techjockey, with over 5 years of experience in content creation and management. From writing about normal everyday affairs to profound fact-based stories on wide-ranging themes, including environment, technology, education, politics, social media, travel, lifestyle so on and so forth, she... Read more
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