GSTR-7 is the monthly return filed by persons required to deduct Tax Deducted at Source (TDS) under GST. Primarily applicable to government departments, local authorities, and PSUs making payments exceeding ₹2.5 lakh under contracts to registered suppliers.
Section 51 of the CGST Act mandates TDS deduction by the following entities:
All ministries, departments, and attached offices of the Central Government making payments under contracts exceeding ₹2.5 lakh.
State government departments, directorates, and offices. Includes all state-level establishments making contractual payments.
Municipal corporations, panchayats, municipalities, cantonment boards, and other local self-government bodies.
Public Sector Undertakings, government agencies, and entities established by government legislation where notified for TDS.
Any entity or class of persons specifically notified by the government under Section 51 of the CGST Act to deduct TDS on GST.
TDS is deducted at a flat rate — no variations based on nature of supply:
| Component | Rate | Applicability |
|---|---|---|
| CGST TDS | 1% | Intra-state supplies |
| SGST/UTGST TDS | 1% | Intra-state supplies |
| IGST TDS | 2% | Inter-state supplies |
| Total effective rate (Intra) | 2% | 1% CGST + 1% SGST |
| Total effective rate (Inter) | 2% | 2% IGST |
Invoice-wise details of supplies on which TDS has been deducted. Includes deductee GSTIN, invoice number/date, contract value, taxable value, and TDS amount deducted.
Corrections to TDS details reported in previous GSTR-7 periods — changes in deductee GSTIN, invoice details, or TDS amounts.
Summary of total TDS liability — CGST, SGST/UTGST, IGST, and Cess. Details of payment made from electronic cash ledger.
Interest payable on late TDS deposit (18% p.a.) and late filing fee (₹200/day — ₹100 CGST + ₹100 SGST, max ₹5,000).
Details of any refund claimed from excess balance in the electronic cash ledger.
Apply for special TDS registration under GST using Form GST REG-07. This is separate from regular GST registration. PAN is used as the identifier.
When making payment exceeding ₹2.5 lakh under a contract, deduct 2% TDS (1% CGST + 1% SGST for intra-state, or 2% IGST for inter-state) from the payment to the supplier.
Deposit the deducted TDS to the government by the 10th of the month following the month in which TDS was deducted. Use the electronic cash ledger for payment.
Access gst.gov.in → Returns → GSTR-7 → Select return period → Enter details of all supplies on which TDS was deducted (Table 3).
After filing GSTR-7, issue Form GSTR-7A (TDS certificate) to each deductee within 5 days of filing. This certificate enables the deductee to claim TDS credit.
Preview return → File via DSC or EVC → Download GSTR-7A certificates for all deductees → Distribute to respective suppliers.
| Violation | Penalty / Interest | Maximum |
|---|---|---|
| Late Filing of GSTR-7 | ₹200/day (₹100 CGST + ₹100 SGST) | ₹5,000 per return |
| Late Payment of TDS | 18% per annum interest | From due date to actual payment date |
| Non-deduction of TDS | Interest + penalty under Section 122 | ₹10,000 or amount of tax involved |
| Late Issue of TDS Certificate | ₹100/day per certificate | ₹5,000 per certificate |
TDS under GST must be deducted when the total value of supply under a single contract exceeds ₹2.5 lakh (excluding tax). The ₹2.5 lakh threshold is per contract, not per invoice. Individual invoices under a larger contract still attract TDS.
The TDS deducted appears in the supplier's GSTR-2B (auto-populated from deductor's GSTR-7). The supplier accepts the TDS in their return, and the amount is credited to their electronic cash ledger. They can use it to pay their GST liability.
No. TDS is deducted only on the taxable value (base amount) of the supply — NOT on the GST amount. For example, if supply value is ₹10 lakh + ₹1.8 lakh GST, TDS is calculated on ₹10 lakh only.
Government entities registered only as TDS deductors cannot claim ITC. They are registered under Section 51 specifically for TDS purposes. If they also make taxable supplies, they need separate regular GST registration.
If excess TDS is deducted, the deductor can adjust it in the next month's GSTR-7 through amendments (Table 4). The deductee will see the corrected amount in their GSTR-2B. Alternatively, the deductee can claim refund of excess TDS.