GSTR-7 Explained: Latest Update for TDS Deductor Under GST
If your business or government entity deducts TDS (Tax Deducted at Source) under GST, filing the correct return is crucial for compliance and smooth operations. GSTR-7 is the return dedicated specifically for TDS deductors, and recent updates have made important changes to its reporting requirements.
What is GSTR-7?
GSTR-7 is the monthly return that must be filed by every registered person who deducts TDS under Section 51 of the CGST Act. Typical deductors include:
Government departments
Local authorities
Public sector undertakings
Notified private businesses
The form requires you to report the details of TDS deducted, TDS paid, and any TDS refund claimed. It also helps deductees (suppliers whose payment is taxed at source) to claim the deducted amount in their own GST returns via auto-population, easing the ITC flow.
Who Should File GSTR-7?
Any person or entity required to deduct TDS under GST needs to file GSTR-7 every month if they make payments exceeding the prescribed threshold for taxable goods and/or services.
GSTR-7 Due Date
Monthly Filing: The GSTR-7 return must be filed by the 10th of the following month.
Example: For September 2025, the due date is 10th October 2025.
What’s New in GSTR-7? Major Update From September 2025
Invoice-wise Reporting Now Mandatory
Effective September 2025 tax period, GSTR-7 must be filed invoice-wise, not just summary-wise or deductee-wise.
For every transaction where GST TDS is deducted, the deductor must now report:
Invoice number and date
GSTIN of deductee
Taxable value of each invoice
Amount of TDS deducted per invoice
Why This Update?
Enhances transparency and accuracy in TDS reporting.
Makes reconciliation of TDS between deductor and deductee easy
Improves compliance and reduces mismatch disputes
Key Points
The update is enabled on the GST portal as per Notification No. 09/2025 – Central Tax dated 11.02.2025
Deductors must now ensure every invoice with TDS is properly captured and filed in GSTR-7
Summary filing is no longer allowed for returns starting September 2025 onward
How Does This Impact Businesses and Departments?
Deductors need to upgrade data-capture and reporting mechanisms
Accountants must ensure all invoice-level information is available and accurate
Deductees get improved visibility of deducted TDS in GSTR-2A, making ITC claims easier
Portal implementation means errors, mismatches, and notice risks are reduced
Common GSTR-7 Filing Errors to Avoid
Missing invoices in monthly reporting
Wrong GSTIN or invoice numbers
TDS wrongly computed on exempt or out-of-scope invoices
Delayed filing, which carries a late fee and interest
Conclusion
Filing GSTR-7 is now more detailed and transparent than ever. All government bodies, notified entities, and businesses deducting GST TDS must embrace invoice-level reporting from September 2025. This ensures easier compliance, faster reconciliation, and lower risk of errors. For best practices, always use updated accounting software and consult GST professionals for hassle-free compliance.
Final Thoughts
With the new update, invoice-wise reporting in GSTR-7 is now mandatory. This step brings better transparency, accuracy, and smoother reconciliation between deductor and deductee. Ensure timely compliance, update your systems, and consult experts if needed.
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