GSTR 7 nil returns are mandatory if no data for a particular month!

GSTN has provided various FAQs and User manuals to help the taxpayers with compliance requirements under GST. In the FAQs provided for GSTR 7 on the portal, it was mentioned that it is not mandatory to file a nil return for Form GSTR 7. However, as per Notification No. 17/2024, effective from November 1, 2024, taxpayers will now be required to file GSTR-7 returns sequentially, starting with the October 2024 tax period. This created confusion about the nil filing of Form GSTR 7 among the taxpayers.

Therefore, the GSTN has issued an advisory on 04^th December 2024 to clarify this matter. Let’s understand the details!

Advisory dated 4^th December 2024

Advisory on mandatory Sequential Filing of GSTR-7 Returns as per Notification No. 17/2024

Dec 4th, 2024

Multiple tickets have been received regarding the sequential filing of returns in Form GSTR-7. Taxpayers are referencing FAQs for the same, wherein “it is not mandatory” is mentioned.

To clarify, It is to inform you that the following changes have been introduced in the return filing process for GSTR-7 with effect from 01.11.2024 onwards.

Sequential Filing of GSTR-7:

As per Notification No. 17/2024-Central Tax, dated 27th September 2024, effective from 01.11.2024, GSTR-7 filing has been made sequential from the October tax period. Hence, the GSTR-7 return is to be filed in chronological order, beginning with the return period of October 2024. It is pertinent to mention that for a month in which no deductions have been made, deductors need to file NiL returns for the same month.

For any further assistance, taxpayers may contact the GSTN helpdesk.

ThankingYou,
Team GSTN

Key Highlights

• As per Notification No. 17/2024-Central Tax, dated 27th September 2024, effective from 01.11.2024, GSTR-7 filing has been made sequential from the October tax period.
• Therefore, the GSTR-7 return is to be filed in chronological order, beginning with the return period of October 2024.
• For a month in which no deductions have been made, deductors need to file NiL returns for the same month.

Conclusion

The introduction of mandatory sequential filing for GSTR-7 returns, as outlined in Notification No. 17/2024, marks a significant step in streamlining GST compliance processes. By requiring chronological submission of returns, the GST framework aims to ensure accuracy, transparency, and consistency in tax filings.

Taxpayers must take note of this change, starting from the October 2024 tax period, and ensure that all pending returns, including nil returns, are filed in order to avoid compliance issues. 

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