The Central Board of Indirect Taxes and Customs (CBIC) has reminded the taxpayers to file GSTR-7 before the due date as the last date to file the same by deductors is 10th December 2022.
“A Gentle Reminder for Deductors: Have you file your GSTR-7 for November 2022? The Last Date is 10th December 2022,” the CBIC reminded through the official twitter handle of the GSTN.
Form GSTR-7 is a return which is required to be filed by the persons who deduct tax at the time of making/crediting payment to suppliers towards the inward supplies received.
It is mandatory to file the GSTR 7 form by the 10th of the preceding month. GSTR 7 form is only for the deductors of TDS and not for regular taxpayers. It will contain the details of the tax deducted at the source.There is no obligation on filing a nil return if you haven’t deducted the TDS for a particular tax period.
A late fee chargeable for GSTR-7, i.e. TDS filing under GST, shall be of a maximum of Rs. 2,000, while a late fee per day charged is reduced from Rs. 200 to Rs. 50 per day of delay per return.
As per the GST law, the following individuals/entities can deduct TDS:
– A department or establishment of the Central or state government
– A local authority
– Governmental agencies
– Persons or categories of persons as may be notified by the Central or a state government on the Council’s recommendations
As per the Notification No. 33/2017 – Central Tax, 15th September 2017, the following entities can also deduct TDS:
– An authority, a board, or any other body set up by the Parliament, 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 registered under the Societies Registration Act, 1860.
– Public sector undertakings
The above deductors must deduct TDS where the total value of supply under the contract exceeds Rs.2.5 lakh. The rate for TDS is 2% (CGST 1% + SGST 1%) in case of intrastate supply and 2% (IGST) in case of interstate supplies.
However, 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.
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