New GST Returns – Overview, Forms, Invoices, ITC, Amendments, Offline Tool

New GST Returns – Overview, Forms, Invoices, ITC, Amendments, Offline Tool

In this article, we will discuss the essential pointers a taxpayer needs to note when it comes to the New GST returns. An overview of the key terms and processes that are distinguishing under the New GST returns are explained here.

Latest Updates

Update as on 14th March 2020*

The new GST return system will be implemented from October 2020.

The present return filing system (GSTR-1, 2A & 3B) will continue until September 2020.

*Subject to CBIC notification

Update as on 20th September 2019

As per the decision taken at the 37th GST Council Meeting, the new GST return system for all taxpayers and for all forms will be implemented from April 2020.

1. What is the New GST Return System?

In the 31st GST Council Meet, it was decided that a New Return System under GST would be introduced for taxpayers. This return system will contain simplified return forms, for ease of filing across taxpayers registered under GST. Under this New Return System, there will be one main return GST RET-1 and 2 annexures GST ANX-1 and GST ANX-2. This return will need to be filed on a monthly basis, except for small taxpayers who can opt to file the same quarterly. Small taxpayers are taxpayers with a turnover up to Rs 5 crore in the preceding financial year.

2. Forms to be filed under the New GST Return System

The main return GST RET-1 will contain details of all supplies made, input tax credit availed, and the payment of taxes, along with interest, if any. This return will contain two annexure forms namely GST ANX-1 and GST ANX-2.  GST ANX-1 (Annexure of Outward Supplies) is for reporting details of all outward supplies, inward supplies liable to reverse charge, and import of goods and services, that will need to be reported invoice-wise (except for  B2C supplies) on a real-time basis. GST ANX-2 (Annexure of Inward Supplies) will report details of all inward supplies. Most of these details will be auto-drafted from the details uploaded by the suppliers in their GST ANX-1. The recipient of supplies will be able to take action on these auto-drafted documents, which will be available to them on a real-time basis.

3. Differences between Current Vs New GST Return Systems

Old Return-filing System	New Simplified Return System
Taxpayers considered small if turnover is up to Rs 1.5 crore in the preceding financial year, otherwise considered large taxpayers	Taxpayers considered small if turnover is up to Rs 5 crore in the preceding financial year, otherwise considered large taxpayers
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, and returns will not need to be filed for this period

The New GST Return System has been launched on a trial basis from July 2019, and the full-fledged system will be put into place from April 2020 (earlier: October 2019). This transition plan will be carried out in a phased manner. The trial phase will be for users to familiarise themselves with the annexure forms of the new return system.4. Transition plan to the New GST Return System

The transition plan that was previously announced was as follows:

From July to September, during the trial phase, taxpayers will continue to file their GSTR-1 and GSTR-3B returns as per the current system in place. From October 2019, GST ANX-1 will need to be filed by large taxpayers, which will replace the GSTR-1 return. However, GSTR-3B will still need to be filed up to November 2019. In the case of small taxpayers. they will need to pay taxes using PMT-08, which will replace their GSTR-3B return.

From December 2019, large taxpayers will have to start filing GST RET-01, the main return under the new return system. For small taxpayers, their first GST RET-01 will need to be filed for the quarter of October-December 2019.

To know more about the transition into the New Return System, click here.

5. Offline Demo Tool Prototype

The GST Network (GSTN) has introduced an interactive web-based prototype of the Offline Tool

of the new return system. With this demo version of the prototype, a taxpayer will be able to navigate across different pages. This prototype will also allow a user to experience various functionalities such as drop-down menus, upload of invoices, upload of the purchase for verifying with inward supplies (system-created), etc.

A taxpayer will be able to analyse and experience the practical aspects of the simplified GST returns with this prototype. A user can then share feedback or suggestions with the GSTN. 

Click to know more on preparing GST ANX-1 and taking action on GST ANX-2 on the offline tool prototypes.

6. Important Changes introduced in the New GST Return System

These are some of the changes introduced in the new return system-

·         Harmonized System of Nomenclature (HSN) code will be needed in order to submit details at a document level (on the basis of turnover) versus a separate HSN summary.

·         A user will also get HSN via his GST ANX-2, wherever a supplier was supposed to declare the HSN code.

·         B2B supplies, liable to reverse charge mechanism need not be shown by the supplier in the GST ANX-1, however, the aggregate figure will need to be shown in GST RET-1.

·         Inward supplies which are liable to RCM has to be declared in GST ANX-1 at the GSTIN level, by the recipient of supplies.

·         The concept of B2C-L has been removed. The turnover limit for quarterly filers (small taxpayers) will be considered as Rs 5 crore versus the present limit of Rs 1.5 crore.

·         A recipient can report missing invoices at an invoice level (that is when a supplier has not uploaded an invoice in T+2 period).

 

7. Upload of Invoices under the New GST Return System

There are several terms introduced in the new return system, with regard to the upload of invoices–

  Missing invoices:

Whenever a supplier has not uploaded an invoice or a debit note, and a recipient claims ITC, it will be termed as “missing invoices”. When ITC is availed on missing invoices by a recipient, and these missing invoices do not get uploaded by the supplier within the stipulated time frame, then the ITC availed with respect to such debit notes/invoices will be recovered from the recipient. 

Locking of invoices:

A recipient will have the option to lock in an invoice, if he agrees with the details reported in that invoice. If there is a huge volume of invoices, it may not be practical to lock in individual invoices, and in such cases, deemed locking of invoices will be done on those invoices uploaded which are neither rejected nor have been kept as pending by recipient.

  Unlocking of the invoices:

An invoice on which ITC has already been availed by a recipient will be considered a locked invoice, and will not be open for amendments. In case an amendment needs to be made to a particular invoice, the supplier will have to issue a debit or a credit note. An incorrectly locked invoice can be unlocked by the recipient online, subject to a reversal of ITC claim made, and an online confirmation thereafter. 

  Pending invoices:

An invoice which has been uploaded by a supplier, however one of the following scenarios applies to that invoice:

§  The recipient has not received the supply

§  The recipient is of the opinion that there is a need for an amendment in the invoice

§  The recipient is unsure about availing ITC for the time being

An invoice in such cases will be marked pending by the recipient, and no ITC will be availed by a recipient on these pending voices. 

  Rejected invoices:

When the recipient’s GSTIN is filled incorrectly by the supplier, the invoice will be visible for a taxpayer who is not the receiver of such supplies. As ITC will not be eligible to be taken on these invoices, the recipient will need to reject these invoices. To make the task of rejecting invoices hassle-free, the matching IT tool will have the option to create a recipient/seller master list via which the correct GSTIN can be identified.

 

8. Input Tax Credit (ITC) under the New GST Return System

Availing of ITC will depend on uploading of invoices or debit notes by the supplier, within the stipulated time frame. An invoice uploaded by the supplier within the 10th of the following month will be visible continuously for the recipient. The taxes payable thereafter which can be claimed as ITC will be posted in the ITC table of the recipient’s return before the 11th of the following month. These invoices will be available for availing ITC in the return which is filed by the recipient. Invoices that are uploaded by the supplier after the 10th of the following month will get posted in the concerned field of the recipient’s return of the subsequent month, however, the viewing facility will be on a continuous basis.

9. Amendment Returns under the New GST Return System

Under the new return system, a taxpayer will be allowed to file two amendment returns for each tax period. A taxpayer will also be allowed to make payment through an amendment return, which in turn will help the taxpayer in saving on his interest liability. In case ITC is available in the taxpayer’s electronic credit ledger (ECL), it can be utilised for paying the liability in the amendment return. The amendment of a missing invoice which is reported later by a supplier can be done via an amendment return of the concerned tax period to which the invoice belongs. 

In case a recipient has acknowledged and locked an invoice, amendment of that invoice will not be allowed. To amend any specific value of a locked invoice, either a supplier will have to raise a debit/credit note, or a supplier can seek the help of the recipient in unlocking the invoice so that he will be able to make an amendment by filing an amendment return. Amendment of a GST invoice will be allowed only if ITC has not yet been availed by the recipient.

10. Video – New Return Filing System

To learn more about the advantages associated with the simplified GST return, click here.

ALL ARTICLES

1.      Credit note Debit note Reporting under New GST Returns

Credit note & debit note in the new GST returns will have some changes in the way it was reported in GSTR-1 and GSTR-3B. Learn about the differences with example.

2.      New MSME Act and its Effect on the Payment Cycle Under the New GST Returns

MSMED Act fixes a maximum credit period to pay MSME vendors. New GST returns allows small taxpayers to upload invoices by 11th of the month after quarter.

3.      Forms under New GST Returns for claiming refund on Exports

GST Refund process for Exports of both goods & services will become better and seamless under New GST returns system. Know the forms, procedure and impact.

4.      Issues in the New GST Return System

There are several challenges in the implementation of the new GST return system. The taxpayer has to use the latest technologies to overcome those issues.

5.      Comparison Between the Old & New GST Return System – Miscellaneous

New GST returns have brought changes to the reporting of various particulars like using HSN codes, TDS, TCS for e-commerce operators and Advances received.

6.      Comparison between Old and New GST returns – Refunds

Comparison of new GST returns with old/present returns for various refund types under GST. Know more about the reporting requirements under new GST returns

7.      Comparison Between the Old & New GST Return System – Supplies from Special Economic Zone (SEZ)

Compare between the old and new GST return system to know about changes in reporting of Supplies from Special Economic Zone (SEZ)

8.      Comparison Between the Old & New GST Return System – Supplies Under Reverse Charge Mechanism (RCM)

Reverse Charge Mechanism (RCM) comparison between old and new GST returns filing system, there are some changes in reporting supplies under reverse charge mechanism (RCM).

9.      How to File FORM GSTR-9C?

Here are the steps to download the utility and generate the GSTR-9C JSON file offline, then upload and file form GSTR-9C on the GST portal.

10. Vendor Payments – Is Holding Payments Justified For Not Filing GST Returns?

Here are the measures taxpayers can take to ensure that their vendors file their GST returns on time, under the new GST return system.

11. Comparison Analysis: Old vs New GST Return System – Reporting of Exports, Zero-rated Supplies & Deemed Exports

Here are the key differences in reporting of exports, supplies to SEZ and deemed exports. Find the comparison between Old vs New GST Returns Filing System.

12. Comparison Between the Old & New GST Return System: Outward Supplies and Other Tax Liabilities

Compare old vs new GST return filing system, there are some additions and changes in reporting of outward supplies and tax liabilities.

13. Comparison Analysis: Old vs New GST Return System – Reporting of Inward Supplies and ITC

Find the key differences in reporting of Inward supplies and claiming of ITC in Old vs New GST Return Filing System.

14. How to Upload Data in GST ANX-1 using the GST New Return Offline Tool

The New GST Return offline tool has been launched on a trial basis from July 2019. Here are the steps to upload data in GST ANX-1 using the offline tool.

15. How to Download and Install the New GST Return Offline Tool

The GST New Return Offline Tool has been launched on a trial basis since July 2019. Here are the steps to download and install the Offline Tool.

16. Monthly vs. Quarterly GST Returns – A Comparison Analysis: What Should Small Taxpayers Opt For?

Small taxpayers can choose between monthly or quarterly filing under the New GST Return system. Comparison Analysis Quarterly vs Monthly GST Returns.

17. E-invoicing under New GST Return – What is GSTN’s e-Invoicing Software? & Implementation Date

E-invoicing or electronic invoicing is a system in which B2B invoices are authenticated electronically by GSTN for further use on the common GST portal. Electronic invoicing is proposed to be implemented from 1st January 2020. It will be implemented in a phased manner by GSTN

18. E-way Bill: Changes Introduced In The New Return System Under GST

An E-Way bill is an electronic way bill for the movement of goods. Know about the integration of GST returns with E-Way bills under the New Return System.

19. Invoice Management Under the New GST Returns : Viewing, Locking, Pending, Missing

New GST return system will change the system of invoice management and declaration process. Read to know terms like a pending invoice, missing invoice.

20. New GST Return Anx-2 Matching Tool: How To Use The Matching Tool

GST ANX-2 - The Matching Tool will automatically compare the purchase register and data uploaded by the supplier. This offline tool has also been introduced to get feedback from the users.

21. How to prepare FORM GST ANX-1 Offline using the prototype ANX-1 Offline Tool

The Government has launched the New Filing System under GST on a trial basis. Here are the steps for filing FORM GST ANX-1 offline.

22. Steps to Take Action in GST ANX-2 using the GST New Return Offline Tool

The New Return System has been launched on a trial basis and the prototypes released. Users can learn how to take action in FORM GST ANX-2 offline tool.

23. FORM GST RET-1A – Amendment Return To FORM GST RET-1

FORM GST RET-1A - Taxpayers can amend their returns under the New Return System. Learn how to file an amendment return using FORM GST RET-1A.

24. GST ANX-2 – Annexure Of Inward Supplies

FORM GST ANX-2 is the annexure for inward supplies under the main return FORM GST RET-1. Know about the contents and instructions on filing FORM GST ANX-2.

25. New GST Returns – Overview, Important Changes, ITC, Amendments, Offline Tool

New GST Return - Overview, Updates - Learn about important changes in New GST Returns prototype. The GSTN has introduced Demo offline tools of new return, option for amendment return, availing ITC, uploading invoices online and watch our video to know all about New GST Returns.

26. Form GST RET-1: How To File A Detailed Return

A detailed guide on FORM GST RET-1, the main return under the new filing system. Know about the contents of the new return format and its annexures.

27. FORM GST ANX-1 – Annexure Of Supplies

Under new GST return system, the main return FORM RET-1 will have 2 annexures. Annexure 1 will contain details of all outward supplies, inward supplies liable to reverse charge and the import of goods and services

28. Advantages/Disadvantages of the Simplified Return Forms

New simplified return forms will be introduced in the second half of FY 2019. Let's look at the advantages and disadvantages associated with it.

29. All about PMT-08 under New GST Return

The Form PMT-08 is for payment of self-assessed tax under the new GST returns. Continue to read this article to know in detail about the form.

30. Transition Plan to the New GST Return by the Ministry of Finance

New GST Return System has been launched on a trial basis. Here is all you need to know on transitioning to the New Return System from the current system.

31. GSTN releases the New Return Prototype – demoofflinetool.gst.gov.in

demoofflinetool.gst.gov.in - GSTN introduces an interactive prototype of the “Offline Tool of New Return”.

32. GST Sahaj Return

The GST council announced the new GST quarterly returns for small taxpayers known as Sahaj & Sugam. Read to know about Sahaj form in detail.

33. GST Sugam Return

The GST council introduced new quarterly returns called Sahaj & Sugam in 27th GST council meeting. Let us know the GST Sugam returns in detail.