Summary of Tax Deducted at Source (TDS) and Deposited under GST Laws for the Month of July 2026

Businesses and government entities liable to deduct Tax Deducted at Source (TDS) under the GST law must ensure timely filing of Form GSTR-7 for the month of July 2026. Timely compliance helps avoid interest, late fees, and ensures that the deductee receives the TDS credit without delay.

Due Date

• Return/Form: GSTR-7

• Tax Period: July 2026

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• Due Date: 10 August 2026 (Practiceguru)

What is GST TDS?

GST TDS is governed by Section 51 of the Central Goods and Services Tax (CGST) Act, 2017. Certain notified persons are required to deduct tax at source while making payments to suppliers where the value of a contract exceeds the prescribed threshold.

Key provisions include:

• TDS is applicable where the total value of the contract exceeds ₹2,50,000 (excluding GST and cess where applicable).

• The applicable rate is generally 2% (1% CGST + 1% SGST for intra-State supplies or 2% IGST for inter-State supplies, as applicable).

• The deducted tax must be deposited with the Government and reported through Form GSTR-7. (cleartax)

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Who is Required to File GSTR-7?

GSTR-7 is required to be filed by notified deductors, including:

• Central and State Government Departments

• Local Authorities

• Government Agencies

• Public Sector Undertakings (PSUs)

• Authorities, Boards or other notified bodies required to deduct TDS under Section 51 of the CGST Act. (cleartax)

Information to be Reported in GSTR-7

The return contains details such as:

• GSTIN of deductor and deductee

• Amount paid to suppliers

• TDS deducted and deposited

• Amendments, if any, to previous returns

• Interest or late fee, where applicable. (cleartax)

Consequences of Non-Compliance

Failure to comply with GST TDS provisions may result in:

• Interest on delayed payment of TDS under the CGST Act.

• Late fee for delayed filing of GSTR-7 as prescribed under Section 47 of the CGST Act, 2017.

• Delay in availability of TDS credit to the deductee.

• Recovery proceedings where TDS deducted is not deposited with the Government. (GST Karnataka)

Practical Compliance Tips

• Verify all supplier GSTINs before filing.

• Reconcile TDS deducted with accounting records.

• Deposit the deducted amount before filing GSTR-7.

• File the return on or before 10 August 2026 to avoid interest and late fees.

• Maintain proper documentation for future assessments and audits.

Conclusion

Entities liable to deduct GST TDS should ensure timely filing of GSTR-7 for July 2026 and accurate reporting of deductions. Prompt compliance not only avoids penalties but also enables suppliers to receive timely credit of the tax deducted.

For expert guidance on this topic, contact your tax professional today.

EXCERPT: GSTR-7 for GST TDS deducted during July 2026 is due on 10 August 2026. Ensure timely filing to avoid interest, late fees and compliance issues.

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SEO_DESCRIPTION: File GSTR-7 for GST TDS deducted in July 2026 by 10 August 2026. Stay compliant and avoid penalties. Contact a tax professional today.