GSTR-7 is the monthly return filed by persons required to deduct tax at source (TDS) under GST, typically government departments, local authorities and certain notified entities that make payments to suppliers above a specified value. It reports the TDS deducted from each supplier's payment, along with the supplier's GSTIN, and the deducted amount flows into the supplier's electronic cash ledger once the deductor files. GSTR-7 is filed by the deductor, not by the supplier receiving the payment.
What Is GSTR-7?
GSTR-7 is the monthly return filed by GST-registered deductors to report the tax deducted at source from payments made to suppliers of taxable goods or services. It applies to a specific, notified category of deductors rather than to all registered taxpayers, and it is separate from the deducted supplier's own GST returns. A supplier whose payment had TDS deducted does not file GSTR-7 themselves; they see the credit reflected in their cash ledger after the deductor files.
Who Must Deduct TDS Under GST and File GSTR-7?
| Entity type | General GSTR-7 position |
|---|---|
| Government department or establishment | Generally required to deduct TDS on notified contracts and file GSTR-7 |
| Local authority | Generally required to deduct TDS where notified and file GSTR-7 |
| Government agency or other notified person | Required to deduct and file where specifically notified under GST law |
| Regular private business supplier | Does not file GSTR-7; instead receives TDS credit as a deductee where applicable |
Which categories of deductor are covered, and the payment value threshold above which TDS applies, are set by government notification and have been revised since GST was introduced. Verify current TDS deductor categories and the applicable payment threshold on the GST portal before assuming a contract is or is not covered.
How Is GST TDS Different From Income Tax TDS?
| Aspect | TDS under GST | TDS under Income Tax |
|---|---|---|
| Deducted on | The taxable value of the supply under a notified contract | Various categories of income, payments and contracts |
| Reported through | GSTR-7, filed on the GST portal | TDS returns filed on the income tax portal |
| Credit destination | Deductee's electronic cash ledger on the GST portal | Deductee's Form 26AS and income tax credit |
| Who deducts | Notified government bodies and specified persons | A broader range of payers, depending on the payment category |
GST TDS is also distinct from TCS collected by e-commerce operators; see GSTR-8 TCS return for e-commerce operators for how that separate mechanism works.
What Details Does GSTR-7 Report?
| Section | What it covers |
|---|---|
| Deductee details | GSTIN of each supplier from whom TDS was deducted during the period |
| Amount paid and TDS deducted | Value of the contract payment and the TDS amount deducted against it |
| TDS deposited | Confirmation that the deducted amount has been paid to the government |
| Amendments | Corrections to deductee or amount details reported in an earlier period |
| Interest, if applicable | Computed where TDS deducted was deposited late |
How Do You File GSTR-7 Step by Step?
- Identify all contract payments made during the period that crossed the notified TDS threshold.
- Confirm the TDS amount deducted against each supplier's payment and their correct GSTIN.
- Deposit the TDS deducted with the government within the applicable timeline.
- Log in to the GST portal and enter deductee-wise details in the GSTR-7 return for the period.
- Review the auto-generated TDS certificate details for accuracy before filing.
- File the return and issue the TDS certificate to each deductee as required.
How Does a Supplier Claim TDS Credit?
- Wait for the deductor to file GSTR-7 for the period in which the payment was made.
- Check the electronic cash ledger on the GST portal, where TDS credit appears once GSTR-7 is filed.
- Reconcile the credited amount against the invoice or contract value for that payment.
- Follow up with the deductor if the TDS credit does not appear or does not match expected figures.
- Use the credited amount to offset GST payment liability in subsequent filings.
What Are Common GSTR-7 Errors?
| Error | Typical cause | How to avoid it |
|---|---|---|
| Incorrect deductee GSTIN | Supplier registration details not verified before the contract payment | Confirm GSTIN against the supplier's registration certificate before deducting |
| TDS deducted but not deposited on time | Payment processing delays within the deductor's own accounts | Align the TDS deposit schedule with the payment cycle |
| Mismatch between contract value and reported payment | Partial payments or retentions not accounted for correctly | Report the actual payment value on which TDS was calculated, not the full contract value |
What Records Should Suppliers Keep for TDS Reconciliation?
A supplier who regularly deals with notified deductors, such as government departments, benefits from keeping a clear paper trail for every contract payment that may attract TDS under GST.
- Copies of invoices raised against each contract, showing the taxable value TDS should be calculated on.
- Payment advices or remittance details received from the deductor for each payment.
- TDS certificates issued by the deductor after filing GSTR-7 for the relevant period.
- Bank statement entries confirming the net amount actually received after TDS was deducted.
- A running log matching each contract payment to the TDS credit that eventually appears in the electronic cash ledger.
This record-keeping matters most when a credit does not appear on schedule, since a supplier with organised invoice and payment records can quickly identify whether the issue lies with the deductor's filing or with their own documentation.
How Can OneBooks GST Help Suppliers Track TDS Credit?
OneBooks GST is built for sellers, accountants and CA firms rather than for government deductors, so it does not file GSTR-7 itself. Where OneBooks GST is useful is on the supplier side: once TDS credit appears in a supplier's electronic cash ledger after a deductor files GSTR-7, the supplier still needs to check that the credited amount matches their own invoicing and receipts for that contract.
Suppliers who issue invoices through the accounting software in OneBooks GST have a record of the invoice value against which TDS should have been deducted, which is the figure to reconcile against the credit shown on the portal. The bank statement parser in OneBooks GST also parses uploaded bank statement PDFs or Excel files into dated, ledger-mapped transactions, which helps confirm the net amount actually received after TDS deduction matches expectations. For suppliers who also sell through marketplaces, OneBooks GST consolidates that sales data alongside direct invoices, so all revenue and receivables sit in one place rather than being split across systems. Reach the support team if you need help mapping deducted contract payments in your ledger.
When Is GSTR-7 Due?
GSTR-7 is a monthly return, generally due within the first ten days of the month following the tax period, though this date has been subject to extension in the past. Confirm the current GSTR-7 due date for the relevant month on the GST portal before relying on a fixed date from a previous year.
Frequently Asked Questions
What is GSTR-7?
GSTR-7 is the monthly return filed by GST-registered deductors to report tax deducted at source from payments made to suppliers on notified contracts.
Who is required to file GSTR-7?
Government departments, local authorities and other persons specifically notified as TDS deductors under GST are generally required to file GSTR-7; ordinary private businesses receiving payments do not file it themselves.
How is TDS under GST different from TDS under income tax?
TDS under GST is deducted on the taxable value of a supply under a notified contract and reported through GSTR-7 on the GST portal, while income tax TDS covers a broader range of payments and is reported on the income tax portal, crediting Form 26AS instead of the GST cash ledger.
How does a supplier see their TDS credit?
A supplier can see TDS credit in the electronic cash ledger section of the GST portal once the deductor has filed GSTR-7 for the relevant period.
What happens if a deductor deducts TDS but does not deposit it on time?
Late deposit of deducted TDS can attract interest, and the return will generally show that interest as part of the deductor's liability for the period; check the current interest treatment on the GST portal since it can change.
Can OneBooks GST file GSTR-7 for a business?
OneBooks GST does not file GSTR-7, since that return is filed by notified TDS deductors such as government departments; OneBooks GST instead helps suppliers track their own invoices and bank receipts to reconcile against TDS credits shown on the GST portal.
