Mysuru: With effect from 1.11.2024, that is October 2024 tax period, GST-TDS Return in FORM GSTR-7 filing has been made compulsory whether there is GST-TDS made or not.

In view of this, for a month in which no deduction has been made, the deductors need to file NIL RETURN for the month on or before 10th Day of the next month. The Deductors will not be allowed to file subsequent month return if previous return is not filed.

The Central Government has introduced Tax Deduction at Source (TDS) under GST Act & Rules with effect from 1.10.2018.

If the Goods/Services were supplied by a person to (a) Department or Establishment of the Central Government or State Government; or (b) Local Authority; or (c) Governmental Agencies; or (i) set up by an Act of Parliament or a State Legislature; or (ii) Established by any Government, (d) an Authority or a Board or any other body, with fifty-one percent or more participation by way of equity or control, to carry out any function; or (e) a Society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, or (f) Public Sector Undertakings (PSUs), where the contract value exceeds Rs. 2,50,000, the above mentioned buyer of the Goods/Services has to deduct TDS at the rate of 2% (CGST-1% & SGST 1%) from their Bills and remit to the Government.

The buyer has to upload details of Bill amount and TDS amount against each supplier of goods against his GST Registration No. and file GSTR-7 Return on or before 10th of succeeding month. For delayed payment and filing of Return, interest at 18% per annum and late fee of Rs. 50 per day shall be paid. The deductors are suggested to file NIL GST-TDS Return in FORM GSTR-7 even if there are no transactions in any month and avoid late fee, if any. Wherever there is any doubt, reference may be made to the provisions of the GST Act, the Rules, relevant circulars and/or notifications, according to  N.D. Shreenivaas of  Bhavani Associates, Mysuru.