PRESENTATION ON NEW GST RETURNS

With the aim to simplify GST returns for both the taxpayers as well as the professionals, the Central Board of Indirect Taxes and Customs has introduced a NEW GST RETURN System which would be applicable from April, 2020.

After the approval of the new system in GST Council Meeting, many of you might be having some doubts in their minds that what is the new system all about and how it is going to be different from the previous returns. So in this article I am sharing the information about the new system to suffice at least some of your queries.

In the New GST Return System, there is mainly one periodic return namely RET-1/RET-2/RET-3 with monthly/quarterly filing, depending upon the turnover and the nature of supply.

For understanding, the returns to be filed by the taxpayers based on the turnover and the nature of supply is explained as follows :-

  • RET-1 (Monthly) : For any category of supplier having an Annual Turnover of more than Rs. 5 Crore.
  • RET-1 (Quarterly) : For suppliers not eligible to file Sahaj or Sugam return but having an Annual Turnover of less than Rs. 5 Crore.
  • RET-2/Sahaj (Quarterly) : For suppliers having only B2C supplies and having an Annual Turnover of less than Rs. 5 Crore.
  • RET-3/ Sugam (Quarterly) : For suppliers having only B2C and B2B supplies and having an Annual Turnover of less than Rs 5 Crore.

Under this new system, in addition to the periodic GST return, there are various forms and annexures which are listed below :

Form/Annexure                         Description
ANX-1Annexure of outward supplies and inward supplies attracting reverse charge
ANX-2Annexure of inward supplies
PMT-08Payment of self assessed tax

Difference between Current Return System and New Return System :

Old Return-filing System New Simplified Return System
If turnover is up to Rs 1.5 Crore in the preceding financial year Taxpayers are considered as small, otherwise considered as large.If turnover is up to Rs 5 Crore in the preceding financial year Taxpayers are considered as small, otherwise considered as large.
Multiple return forms to be filed depending on the category of taxpayers, such as – GSTR-1, GSTR-4, GSTR-5, GSTR-6, GSTR-7 etc.A single simplified main return form GST RET-1 containing 2 annexures GST ANX-1 and GST ANX-2 to be filed by all categories of taxpayers.
Revenue invoices can be uploaded only at the time of filing of returns of outward supplies.A mechanism for the continuous upload of revenue invoices on a real-time basis.
Input tax credit could be claimed on a self-declaration basis.Input tax credit can be claimed based on invoices uploaded by the supplier.
Missing invoices and amendments, if any, could only be made in the return of the following tax period.Missing invoices and amendments, if any, can be made by filing an Amendment Return.
Taxpayers have to file GST returns until their registration has been cancelled, even if an application for cancellation of registration has been submitted.Registration will now be suspended, in cases where a taxpayer has applied for cancellation of registration then returns  need  not to be filed for this period.

Benefits of New GST Returns :

  • Auto-population of key details in the returns will lead to saving of time, as
    liability and ITC values will be auto-calculated.
  • Provision for Amendment of returns will help in rectifying the errors (if any) made while filing the return.
  • Invoices can be uploaded throughout the month and credit can be claimed
    accordingly.
  • Help in keeping a check on the menace of frauds committed by generation of fake invoices.
  • It would dissuade habitual non-filers, as auto-population of credit would stop in GST ANX-2.

Hopefully, some of your queries have been resolved.

If you want to read about some other tax related topics on budget 2019 etc., then see my other articles here : CLICK HERE TO SEE MY OTHER ARTICLES

AUTHOR : SHALINI PASSI (CLICK HERE TO VIEW PROFILE)