What Is GSTR 7A: Everything You Need to Know About

GSTR-7A is an automated certificate that the Goods and Services Tax (GST) system generates after deductors file GSTR-7 (monthly return form) for TDS (Tax Deducted at Source) deductions. Deductees can present this certificate to claim input tax credit (ITC) and reduce their tax liabilities.

Learn what is GSTR-7A, who needs it and how to view or download the certificate here for seamless ITC claims.

What Is GSTR-7A?

As mentioned earlier, Form GSTR-7A is a system-generated TDS Certificate issued once the deductor submits Form GSTR-7 on the GST Portal. The certificate is generated when the deductee verifies the details provided by the deductor and files their return. It is accessible to both the deductor and the deductee.

Who Is Eligible to Get GSTR-7A?

Now that you know what is GSTR-7A, let us take a look at the list of entities that should obtain it after the TDS deduction:

● Government Departments: Central or State Government departments need to deduct TDS when making payments for goods and services supplied.

●  Governmental Agencies: Government agencies undertaking functions on behalf of the Central or State Government need to obtain GSTR-7A for the TDS they deduct.

●  Local Authorities: Municipal corporations and local government authorities need to get GSTR-7A for the TDS they deduct.

●  Public Sector Undertakings (PSUs): Companies where the government holds at least 51% stake need to deduct TDS and obtain GSTR-7A for supplier payments.

●  Authorities and Boards: Any board or authority controlled by the government and established under an Act of Parliament or State Legislature need to obtain this certificate for payments made to suppliers.

●  Government Established-societies: Societies established by either the State or Central Government and registered under the Societies Registration Act, 1860 should deduct TDS under GST.

Deductors are not required to file Form GSTR-7A separately. This certificate is automatically generated by the GST system once the deductor submits Form GSTR-7.

Now, let's explore the due date for filing GSTR-7.

Due Date for Filing GSTR-7

The deadline to file GSTR-7 for a month is the 10th of the next month. For instance, if TDS (Tax Deducted at Source) is deducted in September, the due date for filing GSTR-7 is the 10th of October.

Timely filing of GSTR-7 helps you avoid penalties and interest levied by the government. It further helps deductees claim input tax credit (ITC) on TDS amount within the right time to ensure a smooth flow of cash for business furtherance.

Role of GSTR 7A in Confirming TDS Deductions

Here is the role of GSTR-7A in the GST system:

● It confirms the deduction of TDS by deductors.

● This document presents detailed information about the TDS amount, the deductee's GSTIN, payment value and the deduction date.

● To ensure transparency among the deductee, deductor and the government, it is essential to report TDS deductions accurately.

Significance of GSTR-7A

?feature=shared

Here is the importance of GSTR-7A:

● It acts as the official confirmation for TDS deductions by the concerned deductor.

● After the deductor files the GSTR-7 Form, the certificate is generated automatically.

●  GSTR-7A includes details pertaining to TDS deducted on financial transactions related to the supply of goods and services.

● The GSTR-7A ensures transparency between the deductor and deductee followed by GST compliance.

How Can the Deductee Use GSTR-7A to Claim ITC?

Subsequent to the GSTR-7 filing by the TDS deductor, the GSTR-7A Form gets generated automatically, reflecting the TDS amount. The deductee can find these details in their tax records. To claim ITC (Input Tax Credit), deductees need to use the GSTR-7A Form.

ITC claims help deductees reduce their outward tax liability, thereby lowering the payable tax amount. GSTR-7A acts as an official proof for TDS deduction which needs to be presented for ITC claims. In the absence of this form, deductees might face delays in receiving ITC claims.

Availability of GSTR-7A for Deductors and Deductees 

Both deductors and deductees can avail and access GSTR-7A on the unified GST portal. This ensures transparency in the TDS deduction process while facilitating fiscal compliance. It is essential for both the parties to access the form to confirm that the TDS deducted is deposited with the government within the due date.

Details Available in GSTR-7A

The following are the details included in GSTR-7A:

● TDS Certificate Number: GSTR-7A certificates have a unique TDS Certificate Number which deductors and deductees can refer to for tracking issues pertaining to TDS deduction.

●  Deductor’s GSTIN: Deductor’s GSTIN is a unique 15-digit number that helps monitor his/her compliance with GST laws.

●  Deductor’s Name: The deductor’s name mentioned on GSTR-7A helps identify the entity deducting TDS during a supplier payment.

● Deductee’s GSTIN: A 15-digit unique GSTIN (GST Identification Number) is provided to the TDS payer linked to the TDS deduction correction receipt.

● Name of the Taxable Person (Deductee): This detail on GSTR-7A helps identify the person or entity from whom the deductor deducts TDS for goods or services supply.

● Tax Period for Filing GSTR-7: The period for which TDS is deducted for GSTR-7 is mentioned on the certificate. This can be a month or a year during which the deductor deducts TDS.

● Value of Payment on Which TDS is Deducted: This section highlights the total amount of supply of goods or services for which the tax deductor deducts TDS.

● Contract Details and Invoice Details: This section presents the invoice number, invoice date and the contract pertaining to the transaction to ensure transparency between deductors and deductees.

Process to View and Download GSTR-7A

The steps to view and download GSTR-7A vary for deductors and deductees as follows:

Steps to View and Download GSTR-7A for Deductors

Here are the steps that deductors need to follow:

Step 1: Log in to the unified GST portal using valid user credentials.

Step 2: Navigate to the ‘Services’ option then ‘User Services’, ‘View/Download Certificate’.

Step 3: Click on the ‘TDS Certificate’ link on the display.

Step 4: From the drop-down menu choose the financial year and the period for filing returns.

Step 5: Fill in the GSTIN of the deductee if you want.

Step 6: Click on ‘Search’ to download the TDS certificate.

Steps to View and Download GSTR-7A for Deductees

Here are the steps to view and download GSTR-7A for deductors:

Step 1: Visit the official GST portal and log in using your credentials like user ID and password.

Step 2: Go to the ‘Services’ tab and then ‘User Services’ followed by ‘View/Download Certificates’.

Step 3: Click on the link mentioning ‘TDS Certificate’.

Step 4: Choose the return filing period after selecting the financial year.

Step 5: Enter the GSTIN of the deductor if you want specifications.

Step 6: Click on ‘Search’ to complete the TDS certificate download process.

Pre-requisites for Generating GSTR-7A

Here are the prerequisites to generate GSTR-7A:

● The deductor needs to file GSTR-7 prior to GSTR-7A certificate generation on the GST portal.

● Deductees need to accept the details that deductors file on GSTR-7.

Once the above-mentioned conditions are fulfilled, the system generates a GSTR-7A certificate automatically. You can use this GSTR-7A to claim input tax credit (ITC).

Penalties for Non-Filing or Late Filing Associated with GSTR-7A

Timely filing of Form GSTR-7 is essential for the automatic generation of the GSTR-7A certificate. Any delay or failure to file GSTR-7 can lead to penalties and extra financial costs. Here are the key penalties associated with late or non-filing of GSTR-7, which affect the issuance of GSTR-7A.

1. Late Fee for Non-Filing of GSTR-7

The late fee for non-filing of GSTR-7 within the 10th of the next month (for the taxable month) is ₹200 per day wherein the government imposes ₹100 each for CGST and SGST (Central Goods and Services Tax and State Goods and Services Tax). The maximum amount of penalty that the government can levy is ₹5,000 irrespective of the number of days for which GSTR-7A is not filed.

2. Interest for Late Payment of TDS

In addition to the late fee, the government levies an 18% per annum interest on the TDS amount for late payment. The interest calculation date starts from the 11th of the month (a day after the due date) until the date of TDS payment. It might attract additional costs for further delays increasing the deductor’s financial burden.

3. Consequences of Failing to File GSTR-7

If you do not file GSTR-7, the GST system will not generate GSTR-7A which is an automated process. As a result, deductors will likely face compliance issues with tax norms in addition to the imposition of penalties. On the flip side, deductees will face an increased tax liability as they will not be able to claim input tax credit which requires GSTR-7A.

Can You Revise GSTR-7A?

Once generated, GSTR-7A cannot be modified. Any mistakes or missing details in the TDS information cannot be directly corrected in the certificate. Instead, adjustments must be made by updating Form GSTR-7 before submission.

Here's how you can amend the errors:

● The deductor can consider rectifications while filing returns for the next month in GSTR-7.

●  In the following cycle, the GST system will generate a revised GSTR-7A with the rectified and updated information.

How to Download Multiple GSTR-7A Certificates?

Here are the steps to download multiple GSTR-7A certificates:

Step 1: Log in to the official GST portal using valid credentials.

Step 2: Go to the ‘Services’ option on the portal, then ‘User Services’ and ‘View/Download Certificates’.

Step 3: Click on ‘TDS Certificate’ to access the available certificates.

Step 4: Choose the financial year followed by the period for filing returns.

Step 5: Fill in the deductee's GSTIN (Goods and Services Tax Identification Number) and click on 'Search'.

Step 6: Your document will be ready for download in PDF format.

Notably, when a deductor deducts TDS from multiple sources (suppliers and deductees) for a particular period, the GST system generates multiple GSTR-7A certificates for each GSTIN of the deductee. You need to download each of these GSTR-7A individually as the system does not allow bulk download.

Details Necessary for Filing GSTR-7 

Here are the different sections of GSTR-7:

● Taxable Entity’s legal name

● Supplier’s GSTIN

● Details pertaining to the valid tax period

●  Assessment Circle of the concerned tax period

●  TDS Certificate Number

●  Contact details

●  Details of invoice

●  Payment value of TDS deducted

Important Things to Remember About GSTR-7

You need to remember the following aspects pertaining to GSTR-7:

● GSTR-7 applies to specific taxpayers and not to all registered persons under GST.

● This form provides the details of tax deducted at source in rupees.

● Deductors can report TDS deductions for which suppliers can claim tax credits.

● The GST system generates GSTR-7A after GSTR-7 filing.

●  If the registered state of the recipient is different from the place of supply, no TDS deduction applies.

●  After filing Form GSTR-7, suppliers can view details pertaining to TDS in Part C of the GSTR-2A Form to claim input tax credit on the TDS amount.

● Suppliers can use the GSTR-7 return form to reduce payment of output tax liability.

● You cannot file the above-mentioned returns unless you pay for previous tax liabilities.

Rate of Deduction Applicable for GSTR-7 Filing

TDS is deductible when the total supply value exceeds ₹2.5 lakh and the charges apply as follows:

● For intrastate supply of goods or services, a 2% TDS deduction applies wherein the government deducts 1% for CGST and SGST each.

● In the case of interstate supply of services and goods, a 2% deduction applies under IGST (Integrated Goods and Services Tax).

Conclusion

To answer what is GSTR-7A, it is crucial to mention that this certificate generated on the GST system after GSTR-7 filing helps tax deductees claim ITC to reduce tax burdens. Further, businesses can enjoy seamless cash flow with ITC claims credits for furtherance of operations.

Ensure you file GSTR-7 within the due date to generate Form GSTR-7A for ITC claims, penalty avoidance and tax compliance.

💡If you want to streamline your payment and make GST payments via credit card, consider using the PICE App. Explore the PICE App today and take your business to new heights.

FAQs