Mandatory Sequential Filing of GSTR-7 Returns: GSTN issues Advisory
GSTN mandates sequential filing of GSTR-7 returns starting November 2024
GSTN – GSTR-7 Returns – Mandatory Sequential Filing – GSTN issues Advisory – Goods and Services Tax Network – taxscan
GSTN – GSTR-7 Returns – Mandatory Sequential Filing – GSTN issues Advisory – Goods and Services Tax Network – taxscan
The Goods and Services Tax Network ( GSTN ) has issued an advisory regarding the mandatory sequential filing of GSTR-7 returns, effective from November 1, 2024. This measure follows Notification No. 17/2024-Central Tax, dated September 27, 2024.
The GSTN advisory stated that it had received multiple queries from taxpayers referencing outdated FAQs, which had mentioned that sequential filing was not mandatory. To address this confusion, the GSTN has clarified that sequential filing is now a mandatory requirement for all taxpayers filing GSTR-7 returns.
Taxpayers must file GSTR-7 returns in chronological order, starting with the tax period of October 2024. Deductors who made no deductions in a specific month must still file a Nil return for that period.
Read More: 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 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 had 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 had 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.
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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 took effect from November 1, 2024, providing deductors with a clear timeframe for compliance. Previously, the rule had required every deductor to 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) was required to 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.
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“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.”
With this change enforced from November 2024, it has become crucial for entities liable for TDS deductions under GST to stick to the updated deadlines and avoid penalties for late filing.
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