CBIC notifies due Date for GST Return GSTR-7 Filing [Read Notification]

The Central Board of Indirect Taxes and Customs ( CBIC ) has introduced a critical change in the filing process for Tax Deducted at Source ( TDS ) under the Goods and Services Tax ( GST ) regime. Through Notification No. 20/2024 – Central Tax, issued on October 8, 2024, the CBIC has amended Rule 66 of the Central Goods and Services Tax ( CGST ) Rules, 2017, to include a specific timeline for submitting GSTR-7 returns

Rule 66 of the CGST Rules previously required every deductor, i.e., entities responsible for deducting TDS under section 51 of the CGST Act, to file the GSTR-7 return electronically. However, it lacked a defined deadline for submission, leading to inconsistent filing practices and delays. Such delays posed significant challenges for suppliers as timely filing ensures the proper crediting of TDS to their accounts, contributing to the smooth functioning of the GST system.

Complete Draft Replies of GST ITC Related Notices, Click Here

The newly inserted provision in Rule 66 now mandates that the GSTR-7 form be filed “on or before the tenth day of the month succeeding the calendar month.” This rule will take effect from November 1, 2024, providing deductors with a clear timeframe for compliance.

Previously, the rule required that every deductor furnish the GSTR-7 return through the common GST portal without specifying a deadline. “Every registered person required to deduct tax at source under section 51 (hereafter in this rule referred to as deductor) shall furnish a return in FORM GSTR-7 electronically through the common portal either directly or from a Facilitation Centre notified by the Commissioner.”

Now, deductors are required to file the GSTR-7 return by the 10th day of the month following the relevant calendar month. This change aligns with the broader objectives of the GST system, ensuring greater accountability and discipline in TDS filings. “Every registered person required to deduct tax at source under section 51 (hereafter in this rule referred to as deductor) shall furnish a return in FORM GSTR-7, on or before the tenth day of the month succeeding the calendar month, electronically through the common portal either directly or from a Facilitation Centre notified by the Commissioner.”

Complete Draft Replies of GST ITC Related Notices, Click Here

With this change set to be enforced from November 2024, it is crucial for entities liable for TDS deductions under the GST framework to adhere to the updated timelines and avoid penalties associated with late filing.

To Read the full text of the Notification CLICK HERE

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