GSTN Update: Invoice-wise GST TDS Reporting Functionality in Form GSTR-7 now Live
The update function shall apply from the September 2025 tax period, whose return is to be filed by the 10th of October 2025.
GSTR-7 - Taxscan
GSTR-7 - Taxscan
The Goods and Services Tax Network (GSTN) has announced that the invoice-wise reporting functionality for reporting Tax Deducted at Source (TDS) in Form GSTR-7 has now been made operational on the Goods and Services Tax - GST portal.
The latest development has been announced by the GSTN on the basis of Notification No. 09/2025 – Central Tax issued on 11.02.2025 - this notification amended the Form GSTR-7 to allow invoice-level reporting of TDS.
What has changed?
All entities that are registered as TDS deductors are now required to furnish invoice-level details of the transactions on which tax has been deducted while filing Form GSTR-7.
Earlier, deductors were only required to provide consolidated information. However the new system mandates invoice-wise reporting by deductors in a strategy to enhance transparency, improve reconciliation between deductors and deductees, and to ensure that input tax credit (ITC) is passed on accurately.
By capturing TDS data at the invoice level, both the revenue department and taxpayers are provided a clear audit trail of deductions, which in turn would reduce mismatches and ensure timely disbursement of credit for tax withheld.
Deductors, including government departments, local authorities and notified entities under Section 51 of the CGST Act are thus required to readjust their reporting processes immediately to meet the latest requirement put forth by the GSTN.
GSTN has advised all deductors to prepare their data in accordance with the revised format so that accurate invoice-wise details can be uploaded from the September 2025 return period onwards.
Failure to comply with the updated requirement may lead to errors in reconciliation and disputes in ITC claims by deductees.
In case of technical difficulties or filing-related issues, taxpayers have been instructed to raise grievances through the Self-Service Portal on the GST platform, along with all relevant details.
With the September 2025 filing due date of 10th October 2025 approaching soon, the latest move by GSTN is emergent, but is slated to improve invoice-level discipline into GST returns while integrating TDS more effectively into the credit flow mechanism.
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