Mandatory Sequential Filing of GSTR-7: Key Update for Taxpayers

The GST Network (GSTN) has issued an important advisory about mandatory sequential filing of GSTR-7 returns. This change, effective from November 1, 2024, applies to all deductors filing GSTR-7, the return for Tax Deducted at Source (TDS) under GST. Here's what you need to know:

What's the New Rule?

From October 2024 onwards, taxpayers must file their GSTR-7 returns in chronological order. This means:

1. File October’s Return First: You cannot skip October’s GSTR-7 and directly file for November or later months.
2. File NIL Returns When Needed: If no deductions were made in a particular month, you are still required to file a NIL return for that month.

Why This Change?

The GSTN received multiple queries about sequential filing, as previous FAQs mentioned it was not mandatory. However, with Notification No. 17/2024-Central Tax, dated 27th September 2024, sequential filing has now been made compulsory.

Steps to Ensure Compliance

1. Check Your Filing History: Confirm all previous GSTR-7 returns are filed before attempting to file the next one.
2. Submit NIL Returns: If you made no deductions in a month, file a NIL return to maintain sequence.
3. Stay Updated: Follow GST notifications and advisories to avoid penalties or non-compliance issues.

Conclusion

This change aims to streamline the return filing process and avoid gaps in reporting. Deductors must ensure their GSTR-7 returns are filed in order from October 2024 onwards. Non-compliance can lead to delays and disruptions in filings.

If you have questions or face issues, contact the GST Helpdesk for support. Stay compliant, stay stress-free!