Businessmen have received good news regarding the filing of GSTR-7.
The Goods and Services Tax Network (GSTN) has announced that no late fee will be charged for filing Nil GSTR-7 returns after the deadline.
However, GSTN has emphasized the importance of timely filing, as GSTR-7 now needs to be submitted in a sequential order starting October 2024.
This means you cannot file a GSTR-7 return for a particular month unless the previous month’s return has been filed.
From October 2024, if there is no Tax Deducted at Source (TDS) in a particular month, you can file the Nil GSTR-7 late without any late fee.
However, for returns where TDS has been deducted, filing late will incur penalties.
Understanding GSTR-7
GSTR-7 is a monthly return required to be filed by GST-registered taxpayers who deduct TDS under GST. This return includes details of TDS deductions, deposits, and payments.
Who needs to file? All taxpayers responsible for TDS under GST.
When to file? The return must be submitted by the 10th of the following month. For example, the deadline for November 2024’s GSTR-7 is December 10, 2024.
Nil Returns: If no TDS is deducted in a given month, taxpayers must still file a ‘Nil’ GSTR-7 return.
Late Filing Rules and Penalties
Starting October 2024, GSTR-7 must be filed sequentially. If October’s return is not filed, November’s return cannot be submitted. This rule applies even to Nil returns.
Nil Returns: Filing a Nil GSTR-7 late will not attract a late fee. However, failing to file it on time may block the filing of subsequent returns.
Returns with TDS: If TDS has been deducted and the GSTR-7 is filed late, a late fee will be charged.
Chartered Accountant Bimal Jain highlights that delays in filing can disrupt subsequent filings and lead to penalties.
Potential Penalties
For returns with TDS, failing to file GSTR-7 on time can result in a penalty.
Penalty Amount: ₹10,000 or the amount of TDS deducted, whichever is higher.
Minor Mistakes: If delays are due to minor issues and not negligence or fraud, penalties may not apply.
Serious Errors: For severe delays or errors, penalties can be imposed under the GST Act.
In summary, even if your GSTR-7 return is Nil, it’s crucial to file it on time to avoid complications with subsequent filings. Delays for TDS-related returns can result in significant penalties.
