GSTN Advisory, Dated 06-05-2025
1. Background
The Goods and Services Tax Network (GSTN) had earlier proposed the implementation of invoice-wise reporting functionality in Form GSTR-7, which is used for filing Tax Deducted at Source (TDS) returns under the GST regime. This change was originally scheduled to take effect from 1st April 2025.
2. Purpose of the Proposed Functionality
The proposed functionality aimed to –
- Enhance transparency and traceability of TDS transactions
- Require deductors to furnish invoice-level details of supplies while filing Form GSTR-7
- Streamline the reconciliation of TDS credits with suppliers’ returns
3. Deferment of Implementation
In a recent advisory, GSTN has announced that the implementation of this invoice-wise reporting requirement has been deferred until further notice. As a result –
- The existing system of TDS filing in Form GSTR-7 will continue
- Tax deductors are not required to report invoice-level data at this stage
4. Implications for Taxpayers
The deferment provides –
- Additional time for stakeholders to prepare for the upcoming compliance change
- Continuation of current reporting practices, avoiding any disruption in monthly compliance
- Flexibility for deductors, especially in cases involving high volumes of transactions
5. Conclusion
Tax deductors under GST should stay updated with future advisories from GSTN regarding the revised rollout timeline and preparation requirements. Meanwhile, filing of Form GSTR-7 shall continue as per the prevailing norms without the need for invoice-level disclosures.
