What is GSTR 7?
All taxable persons who are required to deduct TDS (Tax Deducted at Source) under GST need to file a monthly return form – the GSTR 7 form.
GST Laws provide for tax deduction at source (TDS) by a specified category of persons (hereinafter referred to as ‘the deductor’) from the payment made or credited to the supplier of taxable goods or services or both (hereinafter referred to as ‘the deductee’) at a prescribed rate.
When is tax deduction required to be made under GST?
Tax is required to be deducted from the payment made/credited to a supplier, if the total value of supply under a contract in respect of the supply of taxable goods or services or both, exceeds Rs. 2,50,000/- (Rupees two lakh and fifty thousand).
The deductor shall furnish to the deductee a system generated certificate in FORM GSTR 7A mentioning therein the contract value, rate of deduction, the amount deducted, the amount paid to the Government and other related particulars. The said certificate is to be furnished within five days of crediting the amount so deducted to the Government i.e. within five days of furnishing return in FORM GSTR-7.
How filing GSTR 7 can help a TDS deductee?
