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All about new GST return system

Goods and Services Tax Council (GST council) in its 31st meeting, decided to rollout new system for return filing under GST to replace the existing system of return filing i.e. GSTR-3B and GSTR-1. Based on GST council recommendation, Goods and Services Tax Network (GSTN portal), introduced new GST return filing system in form GST RET-1 which includes 2 annexures i.e. GST ANX-1 and GST ANX-2 and is likely to be implemented from 01.04.2020.

What is new GST return filing system?

Under new GST return filing system, every taxpayer whose turnover during the last financial year exceeds Rs 5 crore, will have to file monthly return in form GST RET-1. Further for new taxpayers and taxpayers whose turnover during last financial year was upto 5 crore, will have the option to file return on quarterly basis in form namely GST RET-1 “Sahaj”, “Sugam” or “Quarterly Normal”. However tax amount needs to be deposited on monthly basis in form GST PMT-08 by all taxpayers.

Information’s to be provided in new GST returns form.

New system basically consist one main return in form GST RET-1 which includes summery of all the supplies made, input tax credit availed along with details of payment of tax and interest etc.

Form GST ANX-1 will require details of all the transaction on which tax is liable to be paid. In other words, outward supplies made by taxpayer during a particular tax period. Following details are required to be entered in form GST ANX-1:-

1. Supplies made to consumers and un-registered persons net of debit/credit notes in table 3A.
2. Supplies made to registered persons other than those attracting reverse charge (including edit/amendment) in table 3B.
3. Exports with payment of tax in table 3C.
4. Exports without payment of tax in table 3D.
5. Supplies to SEZ units/developers with payment of tax (including edit/amendment) in table 3E.
6. Supplies to SEZ units/developers without payment of tax (including edit/amendment) in table 3F.
7. Deemed exports (including edit/amendment) in table 3G.
8. Inward supplies attracting reverse charge (to be reported by the recipient, GSTIN wise for every supplier, net of debit/credit notes and advances paid, if any) in table 3H.
9. Import of services (net of debit/ credit notes and advances paid, if any) in table 3I.
10. Import of goods in table 3J.
11. Import of goods from SEZ units / developers on a Bill of Entry in table 3K.
12. Missing documents on which credit has been claimed in T-2 /T-1 (for quarter) tax period and supplier has not reported the same till the filing of return for the current tax period in table 3L.
13. Details of the supplies made through e-commerce operators liable to collect tax under section 52 in table 4.

Form GST ANX-2 will require details of all the transaction on which input tax credit is required to be availed. In other words, inward supplies received by taxpayer during particular tax period. Following details are required to be entered in form GST ANX-1:-

1. Supplies received from registered persons including services received from SEZ units (other than those attracting reverse charge) in table 3A.
2. Import of goods from SEZ units / developers on Bill of Entry in table 3B.
3. Import of goods from overseas on Bill of Entry in table 3C.

Most of details in GST ANX-2 will be auto populated and have the option to Accept, Reject and Keep Pending for each transaction. Further if none of the above option is selected within given time, then auto populated transactions will be deemed to be accepted by taxpayer.

Filing of main GST return in form GST RET-1

After uploading of outward supplies on which tax is liable to be paid in GST ANX-1 and inward supplies details on which input tax credit is availed in GST ANX-2, taxpayer is required to file GST return in form GST RET-1. In form GST RET-1, most of the details will be auto populated from GST ANX-1 and GST ANX-2. However following details are required to be entered manually in form GST RET-1 as these details are not uploaded in GST ANX-1 and GST ANX-2:-

1. Exempt and Nil rated supplies.
2. Non-GST supplies (including No Supply / Schedule III supplies).
3. Outward supplies attracting reverse charge (net of debit/ credit notes).
4. Supply of goods by a SEZ unit / developer to DTA on a Bill of Entry.
5. Advances received (net of refund vouchers and including adjustments on account of wrong reporting of advances earlier).
6. Advances adjusted.
7. Liabilities relating to the period prior to the introduction of current return filing system and any other liability to be paid.
8. Reduction in output tax liability on account of transition from composition levy to normal levy, if any or any other reduction in liability.
9. Eligible credit (after 1st July, 2017) not availed prior to the introduction of this return but admissible as per Law (transition to new return system).
10. Provisional input tax credit on documents not uploaded by the suppliers [net of ineligible credit].
11. Upward adjustment in input tax credit due to receipt of credit notes and all other adjustments and reclaims.
12. Supplies not eligible for credit (including ISD credit) [out of net credit available in table 4A above].
13. Reversal of credit in respect of supplies on which provisional credit has already been claimed in the previous tax periods but documents have been uploaded by the supplier in the current tax period (net of ineligible credit).
14. Reversal of input tax credit as per law (Rule 37, 39, 42 & 43).
15. Other reversals including downward adjustment of ITC on account of transition from composition levy to normal levy, if any.

After making above applicable adjustments in form GST RET-1 and payment of taxes through form GST PMT-08, taxpayer can file return with digital signature or through one time password.

Option to file “Nil” GST return

If there is no outward supplies transaction which is required to be uploaded in GST ANX-1 and no inward supplies transaction in GST ANX-2 and no any other transaction or information which is required to be reported in main return, then taxpayer can file nil return in form GST RET-1. Nil return can be filed in single click through digital signature or one time password. Further facility to file nil return through SMS will also be available.

Amendment in GST return filed of earlier tax period

After filing GST return in form GST RET-1, if taxpayer found that any details are needs to be rectified in original return filed, then it can be rectified by filing amendment return in form GST RET-1A and GST ANX-1A in subsequent tax period. Amendment return can be filed before the due date of filing return for the month of September following the end of the financial year or the actual date of furnishing annual return for the relevant year, whichever is earlier.

Filing process of amendment return in form GST RET-1A is similar to filing of original return in form GST RET-1. Further if through filing of amendment return, any liability for payment of tax arises than it can be paid through cash or through input tax credit available. If liability becomes negative than no refund will be granted however the negative liability will be carried forward to main return and adjustment can be made in next return.

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