GST RET-1 and the two new annexures are the new format that the taxpayers are required to fill now. Till the notification was issued by the Government of India, the taxpayers were filing their GST tax returns in the 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: GST RET-1 (the main return form) and two annexures namely GST ANX-1 that will include details of outward supplies, and GST ANX-2 that will have all the details about the transactions related to purchase.
The two annexures will replace form GSTR-1 while form GSTR 3B will be replaced by form GST RET-1.
After approval of the new GST filing system in the 35th council meeting of GST, the Goods and Service Tax Network has released the trial version of offline tools on 30th July for the GST forms GST ANX-1 and GST ANX-2. The offline tools can be downloaded for filing GST returns from the official site of goods and service tax portal. The trial period will continue till 30th September, 2019.
Provisions for new GST return filing:
The new returns will be made mandatory in a phased manner as under:
For large taxpayers:
For the large taxpayers, i.e. taxpayers whose aggregate annual turnover in the previous year was more than INR 5 crores, form GSTR-1 is required to be filed 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 by large taxpayers till Nov. 2019 which will then be replaced by GST ANX-2.
From December 2019 onwards, such 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 small 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 the taxpayers are required to file GSTR-1 and GSTR-3B also for the quarter of July-September as failure to file GSTR-1 and GSTR-3B for the said quarter will attract interest and penalties to be levied on the taxpayer.
Benefits of the new GST return system:
- Under the trial mechanism, the taxpayers can now upload their invoice using the offline tools for GST ANX-1 and GST ANX-2. The users can also see the overall summary of their transactions on the common online portal of GST.
- The taxpayers are also allowed to download their purchase register in the GST ANX offline tool that can help them to correct and rectify any mismatch or errors in the downloaded inward supply invoices.
- The taxpayers will get the option to file 2 amendment returns under the new system.
- If the supplier has not uploaded the invoice, he can still avail input tax credit on a provisional basis.
- The trial mechanism will help the taxpayers to get familiar and to understand and gain knowledge of the new GST return system that will become mandatory from the year 2020.