Last updated: 7 June 2026. Two GST returns share the same deadline this week: GSTR-7 (TDS) and GSTR-8 (TCS) for the May 2026 tax period are both due on 10 June 2026. They sound similar and fall on the same date, but they are filed by completely different people — and if you miss the deadline, one costs five times more than the other. This guide covers who files each, the rates, how the credit flows, and the late-fee gap that catches people out.
Applicability Note: This guide reflects GST provisions and CBIC notifications applicable as of 7 June 2026. Due dates and late fees can change through CBIC notifications, and the GST portal is the authoritative source. No extension to the 10 June 2026 deadline has been notified as of this writing. Always verify the current position on gst.gov.in or with a GST professional before filing.
Who Should Care?
This guide applies to:
- TDS deductors under Section 51 — government departments and establishments, local authorities, government agencies, and notified persons/PSUs who deduct tax at source on their supplier payments (they file GSTR-7)
- E-commerce operators under Section 52 — platforms that collect tax at source on supplies made by other sellers through them (they file GSTR-8)
- Suppliers and contractors who have had TDS deducted or TCS collected on their supplies — because that credit only reaches you once the deductor/operator files
- Accountants and consultants managing either filing
Same Date, Two Different Returns
It is worth being clear up front, because the names blur together. Both returns are due on the 10th of the month following the tax period, so for May 2026 both land on 10 June 2026. That is where the similarity ends.
| GSTR-7 (TDS) | GSTR-8 (TCS) | |
|---|---|---|
| Legal basis | Section 51, Rule 66 | Section 52, Rule 67 |
| Who files | Notified TDS deductors | E-commerce operators |
| Rate | 2% (1% CGST + 1% SGST; 2% IGST) | 0.5% (0.25% + 0.25%; 0.5% IGST) |
| Due date (May 2026) | 10 June 2026 | 10 June 2026 |
| Late fee per day | ₹50 total (₹25 + ₹25) | ₹200 total (₹100 + ₹100) |
| Late fee cap | ₹2,000 total | ₹10,000 total (₹5,000 per Act) |
| Nil return late fee | Fully waived | Full ₹200/day still applies |
1. GSTR-7 — The TDS Return (Section 51)
GSTR-7 is filed by the people who deduct tax at source under Section 51 of the CGST Act. This is a narrow, notified group — it is not every business. It covers government departments and establishments, local authorities, government agencies, and certain notified persons and public sector undertakings.
These deductors must deduct TDS at 2% (1% CGST + 1% SGST on an intra-state supply, or 2% IGST on an inter-state supply) where the total value of a taxable supply under a contract exceeds ₹2,50,000, excluding GST. (The ₹2.5 lakh test applies to the value of the contract, not to each individual payment made under it.) The deducted amount is deposited with the government and reported in GSTR-7 by the 10th of the following month.
The credit does not disappear into the system. Once the deductor files GSTR-7, the TDS amount flows to the supplier's electronic cash ledger (via "TDS and TCS Credit Received"), where the supplier accepts it and uses it to pay their own GST liability. So a late GSTR-7 does not just expose the deductor to a fee — it holds up real money the supplier is waiting to use.
2. GSTR-8 — The TCS Return (Section 52)
GSTR-8 is filed by e-commerce operators — the platforms through which other sellers make supplies. Under Section 52, the operator collects tax at source on the net value of taxable supplies made through it by those sellers.
The TCS rate is 0.5% (0.25% CGST + 0.25% SGST intra-state, or 0.5% IGST inter-state) on the net value of taxable supplies — reduced from 1% with effect from 10 July 2024 vide Notification No. 15/2024-Central Tax dated 10 July 2024. The statutory ceiling under Section 52 is 1%, but the notified rate currently applicable is 0.5%. "Net value" here is the value of supplies made through the platform, reduced by supplies returned during the month. The collected tax is reported in GSTR-8 by the 10th and credited to the supplier, who can claim it in their own cash ledger.
"Net value" matters here: it nets off returns, so a high-return-volume month does not inflate the TCS. But the duty to file does not depend on whether there was much to collect — the operator files every month it is registered to collect TCS.
3. The Late-Fee Gap — Why GSTR-8 Costs Five Times More
This is the part most people get wrong, because they assume two returns on the same date carry the same penalty. They do not. The figures below are total amounts under CGST + SGST combined.
| Return | Late Fee Per Day | Maximum Cap | Nil Return |
|---|---|---|---|
| GSTR-7 (TDS) | ₹50/day (₹25 CGST + ₹25 SGST) | ₹2,000 total | Fully waived |
| GSTR-8 (TCS) | ₹200/day (₹100 CGST + ₹100 SGST) | ₹10,000 total (₹5,000 per Act) | Full ₹200/day applies |
GSTR-7's lower late fee comes from Notification No. 23/2024-Central Tax dated 8 October 2024, which capped the GSTR-7 late fee at ₹25 per day under each Act (₹50/day combined), subject to a maximum of ₹1,000 per Act (₹2,000 combined) per return. The same notification went a step further: where the tax deducted for a month is nil, the GSTR-7 late fee is fully waived. It took effect from 1 November 2024, superseded the earlier Notification No. 22/2021-Central Tax dated 1 June 2021, and extends the reduced fee and nil-return waiver to GSTR-7 returns for June 2021 onwards.
GSTR-8 received no such relief. It still runs on the general Section 47 late fee — ₹100 per day under each Act (₹200/day combined), capped at ₹5,000 per Act (₹10,000 combined) — and there is no nil-return concession. A nil TCS return filed late attracts the full ₹200 per day. That is the trap: an e-commerce operator with a quiet month, assuming "nothing to report, nothing to lose," can still rack up ₹200 a day by skipping the filing.
The short version: a late nil GSTR-7 costs nothing. A late nil GSTR-8 costs ₹200 a day up to ₹10,000. Same deadline, opposite outcome.
4. Interest — The Part No Cap Limits
The late fee is only half the cost. If the tax deducted (TDS) or collected (TCS) is deposited late, interest at 18% per annum applies under Section 50 of the CGST Act, calculated from the day after the due date until the tax is actually paid. Unlike the late fee, interest has no cap — it simply runs on the unpaid amount. So the real cost of a late filing is late fee plus interest on any tax that went in late.
5. How to File — The Common Steps
- Log in to gst.gov.in → Services → Returns → Returns Dashboard → select the May 2026 period.
- Open GSTR-7 (deductors) or GSTR-8 (e-commerce operators).
- Enter the deductee/supplier-wise details — GSTIN, amount paid, and TDS/TCS worked out at the applicable rate.
- Offset the liability from the cash ledger (TDS/TCS is paid in cash, not from input tax credit).
- File using DSC or EVC, then download the filed return.
- Tell your suppliers once filed — their credit only appears after you submit.
For the full month's deadlines, see the June 2026 GST filing calendar.
Key Takeaways
- GSTR-7 (TDS) and GSTR-8 (TCS) for May 2026 are both due 10 June 2026, but they are filed by different people — deductors vs e-commerce operators.
- GSTR-7 late fee is ₹50/day, capped ₹2,000, and fully waived for nil returns, per Notification No. 23/2024-Central Tax dated 8 October 2024.
- GSTR-8 late fee is ₹200/day, capped ₹10,000 total (₹5,000 per Act), with no nil-return relief — even a nil TCS return filed late costs ₹200/day.
- Interest at 18% p.a. under Section 50 applies on any TDS/TCS deposited late, and it has no cap.
- TDS/TCS credit only reaches the supplier once the return is filed — late filing holds up money your suppliers are waiting to use.
Frequently Asked Questions
What is the due date for GSTR-7 and GSTR-8 for May 2026?
Both are due on 10 June 2026. GSTR-7 (TDS) and GSTR-8 (TCS) are each filed by the 10th of the month following the tax period. No extension to this date has been notified as of 7 June 2026.
What is the difference between GSTR-7 and GSTR-8?
GSTR-7 is the TDS return filed by notified deductors under Section 51 (government bodies and certain notified persons who deduct 2% on contract payments above ₹2.5 lakh). GSTR-8 is the TCS return filed by e-commerce operators under Section 52 (who collect 0.5%, reduced from 1% in July 2024, on supplies made through their platform). Different filers, different rates, and different late fees.
Is the late fee the same for both returns?
No. GSTR-7 is ₹50/day capped at ₹2,000, and fully waived for nil returns, per Notification No. 23/2024-Central Tax dated 8 October 2024. GSTR-8 is ₹200/day capped at ₹10,000 total (₹5,000 per Act), with no nil-return relief. A late nil GSTR-8 still costs ₹200 per day.
Does a nil return still need to be filed?
Yes for both. A nil GSTR-7 carries no late fee if filed late, but it should still be filed. A nil GSTR-8 must be filed on time — if it is late, the full ₹200/day late fee applies, so a nil month is not a reason to skip it.
When does the supplier get the TDS/TCS credit?
Only after the deductor or operator files the return. The TDS/TCS amount then appears in the supplier's "TDS and TCS Credit Received" statement, which the supplier accepts to move the credit into their electronic cash ledger. A delayed GSTR-7 or GSTR-8 delays that credit.
Disclaimer: This article is for informational purposes only and does not constitute professional tax advice. GST rules are subject to frequent changes through notifications and circulars. Please consult a qualified tax professional or verify the current provisions on the official GST portal (gst.gov.in) before making any compliance decisions.
Need help with your TDS or TCS return? Our GST experts can help → gstconsultancy.com