CBIC Introduces Timeline for Filing FORM GSTR-7

By: Admin
October 10, 2024
Categories: 54th GST Council
4 Min Read

Background:

Rule 66 of the Central Goods and Services Rules, 2017 (“the CGST Rules”) governs the form and manner of submission of returns by persons required to deduct Tax at Source (“TDS”). Previously, it mandated that every deductor file their returns electronically in FORM GSTR-7 but did not specify a deadline for submission. This lack of a defined timeline led to inconsistent practices among deductors, sometimes resulting in delays in filing returns. Timely filing of FORM GSTR-7 is crucial to ensure proper crediting of TDS to the supplier and the overall efficiency of the GST system.

Now:

The CBIC, through Notification No. 20/2024 – Central Tax dated October 08, 2024, has introduced a specific timeline for filing FORM GSTR-7 in Rule 66 of the CGST Rules. The amendment states:

“In the said rules, in rule 66, in sub-rule (1), after the word, letters and figure ‘FORM GSTR-7’, the words ‘, on or before the tenth day of the month succeeding the calendar month,’ shall be inserted with effect from the 1st day of November, 2024.”

Changes:

Before:

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 electronically through the common portal either directly or from a Facilitation Centre notified by the Commissioner.

After:

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.

Our Comments:

The new provision mandates that the return in FORM GSTR-7, used for TDS deductions under Section 51 of the CGST Act, must be filed on or before the 10th day of the month following the relevant calendar month. This amendment will take effect from November 1, 2024. The introduction of this timeline brings clarity and enhances the timeliness of filing returns for tax deductions at source, ultimately improving compliance within the GST framework.