Big news for taxpayers. GSTN has has issued an advisory. In this context, GST registered taxpayers have been informed about the completion of Form GSTR-7. Individuals required to complete this form must do so by 10th December 2024. GSTR-7 must be submitted by all GST-registered individuals who are obligated to deduct TDS in accordance with the GST regulations.
If the overall amount of taxable goods and services is more than Rs 2.5 lakh, the fixed buyer must withhold TDS before paying the seller. What is unique for GST registered taxpayers in this advisory? Allow us to comprehend thoroughly. According to Notification No. 17/2024-Central Tax dated 27th September 2024, filing GSTR-7 will be mandatory starting from 1st November 2024. This indicates that you will need to submit the returns in sequence each month, beginning in October 2024. Even if you haven’t deducted any TDS during a month, you are still required to submit a ‘zero’ return for that month.
This updated guidance indicates that GST-registered taxpayers must submit GSTR-7 by 10th December 2024, regardless of TDS deductions. If TDS is withheld, it is essential to complete the form.
What are the specialists discussing?
As per Priyal Shah, partner at GST Advisory, NPV & Associates LLP, “The latest advisory indicates that even if TDS has not been deducted, one must still file zero returns.” This will completely adhere to the regulations, enhancing the precision of the information. The GST system will simplify the reconciliation process.
President Hardik Kakadia of the Chartered Accountants Association Surat (CAAS) has expressed worries about the compulsory submission of GSTR-7. “If no TDS is deducted during a specific month, submitting GSTR-7 was not obligatory.” It has already been displayed on the portal. However, out of the blue, a notification from ‘Team GSTN’ arrives, making it compulsory. This will surely result in confusion regarding late filing fees and penalties since it has now become compulsory. Nonetheless, not in a legal sense. Over seven years since the introduction of GST, the unwritten rule of the GSTN software still prevails over the GST enacted by Parliament.
Deepti Nayak, Director at Bhuta Shah & Co LLP, states, “GSTN has recently confirmed that sequential filing is now a compulsory requirement for all taxpayers submitting GSTR-7 returns.” Consequently, according to this notice, taxpayers must mandatorily submit GSTR-7 returns sequentially. Additionally, it has been specified that deductors who did not make any deductions in a particular month are still required to file ‘nil’ returns for that time.
Who has to file GSTR-7?
The central government in his Budget 2024 proposed to amend Section 39 and make it mandatory for TDS deductors to file returns every month. The GST Council had made a similar recommendation in its 53rd meeting.
What is GSTR-7 form?
GSTR-7 is a monthly return that is filed on behalf of all those individuals or entities who have deducted and deposited GST while making payment to another person or entity.
