GST Advisory Update: Deferment of Invoice-Wise Reporting in GSTR-7
What’s the Update?
The Goods and Services Tax Network (GSTN) has issued an official advisory on May 6, 2025, notifying that the previously scheduled invoice-wise reporting functionality in Form GSTR-7 has been deferred due to technical challenges in system development.
Background
As per Notification No. 09/2025 – Central Tax dated 22nd February 2025, it was mandated that deductors of TDS under GST report invoice-wise details in Form GSTR-7 from the return period starting April 2025 onwards.
However, the GSTN has now clarified that the required portal functionalities have not yet been implemented and are under development and testing.
Key Points
- Form Affected: GSTR-7 (Return for tax deducted at source under GST)
- Intended Change: Mandatory invoice-wise TDS reporting
- Original Effective Date: April 2025 return period
- New Status: Deferment due to technical limitations
- Revised Timeline: To be announced soon by GSTN
What Should You Do Now?
Until the enhanced functionality goes live:
✔️ Continue filing GSTR-7 in the existing format
✔️ Do not attempt invoice-wise uploads unless officially notified
✔️ Stay tuned for updates from GSTN and CBIC
✔️ Ensure your TDS reconciliation processes are ready for future changes
Why It Matters
The deferment highlights a key shift in GST compliance strategy:
- Offers temporary relief to deductors from additional reporting burden
- Allows more time for system readiness and ERP integration
- Signals upcoming enhanced transparency and data validation features once implemented
Final Words
The deferment of invoice-wise reporting in GSTR-7 is a temporary measure, but the direction is clear: GST compliance is moving toward granular, invoice-level transparency. Businesses must stay agile and prepare their teams and software for the upcoming transition.