GST New Return System – What Should You Know

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GST return is a statement of facts containing all the details pertaining to the nature of business, taxable turnover of business, determination of tax liability etc. It is furnished by the taxpayer to tax administrators at regular intervals. Taxpayers can file the statements and returns directly on the GST common portal online.

The details furnished by the taxpayer in the form of returns is consolidated and stored at the common portal which will be common for both, i.e. Central Government and State Governments.

Currently taxpayers file their tax return in form of GSTR-1 (return for outward supplies) and GSTR-3B (Return for Purchases made).

Now, according to a recently issued press release by the Ministry of Finance, a new system of filing GST returns has been introduced. The new GST return system includes 3 new forms: one main return form and two annexure namely GST ANX-1 that will include details of outward supplies, GST ANX-2 that will have all the details about purchase transactions and GST RET-1 will be the final return form.

As per the recent updates by the Government, the new returns will be made mandatory in phased manner as under:

For large taxpayers:

For taxpayers with aggregate annual turnover more than INR 5 crores,

  • Return in Form GSTR-1 should be filed by the taxpayer only up to September 2019 and from October 2019, the same will be replaced by GST ANX-1 for the months of October and December.
  • GSTR-3B shall be filed till Nov. 2019 which will then be replaced by GST ANX-2.
  • From December 2019 onwards, taxpayers will be required to file only a single return as both the returns GSTR-3B and GSTR-1 will be combined in New return GST RET-1 .

For small taxpayers:

For taxpayers whose aggregate annual turnover is less than INR 5 crores:

  • Return in form GSTR-3B and GSTR-1 must be filed till Sept. 2019 and for the quarterly tax period ending Dec-2019, new return GST RET-1 is to be filed only.
  • But since tax payment by such taxpayers is required to be discharged on monthly basis, therefore, such taxpayers should file GST PMT-08 with effect from OCT. 2019.
  • Also, Simplified returns called Sahaj and Sugam have been designed earlier to ease the compliance requirements for small taxpayers having turnover below Rs. 5 crore in which lesser detail is required as compared to regular return.

The trial mechanism:

The finance minister has also introduced transition mechanism in which GST ANX-1 and 2 can be filed on a trial basis for the months of July to September. The trial system will help to understand and gain knowledge of the new system but the taxpayer should also file GSTR-1 and GSTR-3B for the same quarter. Failure to file GSTR-1 and GSTR-3B for the said quarter will attract interest and penalties to be levied on the taxpayer.

Under the trial mechanism, Invoices and other documents can be uploaded in FORM GST ANX-1 offline tool on a continuous basis both by large and small taxpayers from October, 2019 onwards and inward supply of invoices can also be downloaded on the offline tool of form GST ANX-2.


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An MBA in finance, I like to cover the wide range of topics related to Taxation, SEBI, Finance and anything that is Public Helpful. The motive is always to make it simpler for the taxpayers understand the system better and take informed decisions.

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