Section 51 of the CGST Act bill mandates some specified recipients to deduct tax at source on certain supplies while making payment for such supplies. They shall deduct an amount at a specified percentage of the payment being made and credit it to the Government as tax paid on behalf of the supplier. The supplier shall be allowed to take credit of such tax deducted and paid. Since these taxpayers shall not be making outward supplies but are only deducting tax on their inward supplies and paying it on behalf of their suppliers, a simplified return Form in GSTR-7 is prescribed for them.
The details furnished by the deductor in GSTR-7 shall be made available electronically to each of the suppliers in Part C of Form GSTR-2A on the Common Portal after the due date of filing of Form GSTR-7.
The certificate referred to in sub-section (3) of section 51 shall be made available electronically to the deductee on the Common Portal in Form GSTR-7A on the basis of the return furnished.
This return would capture the following information:
1. Basic details of the Taxpayer i.e. Name along with GSTIN.
2. Period to which the Return pertains.
3. Details of GSTTN of the Supplier along with the invoices against which the Tax has been deducted. This will also contain the details of tax deducted against each major head i.e. CGST, SGST and IGST.
4. Details of other payments - Interest/Penalties/Fee/Others, etc. (This will be auto populated from the Debit entry in Cash ledger).
GSTR -7 return shall be filed by 10th of the succeeding month. |
