Applicability of New Gst Return Procedure
On the 37th GST Council Meeting, it has been decided that New GST Return System will begin on Trial Basis July 2019 and has been deferred to April 2020. In other words, the New GST Return System will be Mandatorily applicable after April 2020 onwards.
Features of Old Return Filing System
Under the old return filing system, outward supplies and tax liability Are reported in GSTR-1. whereas, Input Tax Credit (ITC) on Imports has to be reported in GSTR-3B.
NOTE:-The taxpayer has to file monthly GSTR-1 if his annual turnover is more than Rs.1.5 crore. Otherwise, the taxpayer can file a quarterly GSTR-1.
Content of this return GSTR -1:-
GSTR-1 has the following features of Supply that are basically reported in GSTR-1. Some Of Those supplies are Mentioned below:-
| S No | Particulars |
| 1 | Supplies made to registered persons other than reverse charge mechanism (RCM) supplies and supplies through e-commerce operator |
| 2 | Supplies made under reverse charge mechanism |
| 3 | Supplies made through e-commerce operator |
| 4 | Interstate supplies to unregistered persons where invoice value is more than Rs.2.5 lakh |
| 5 | Zero-rated supplies and deemed exports |
| 6 | Nil rated, exempted and non-GST outward supplies |
Features of New Return Filing System
Under the New Return Filing System, three new Gst Form has been introduced that is:-
- FORM GST ANX-1
- FORM GST ANX-2
- FORM GST RET- 1
Let’s discuss the Newly Introduced Return in Brief
1. Annexure of Supplies (FORM GST ANX-1) will include details of :
- Outward Supplies,
- Inward Supplies Subject to Reverse Charge,
- Import of Goods and Services
Note: All these details will go on invoice-wise and even on a real-time basis. (except B2C supplies).
2. Inward Supplies Annexure (FORM GST ANX-2)
It will include the following mentioned details of :
- Inward Supplies (that supplies will be Auto populated in GST ANX-2)
Note: Here the recipient can act on the auto-drafted documents which are uploaded by the supplier (as documents are available on a real-time basis).
3. Annexure of Inward Supplies (FORM GST RET-1)
This return will include Tax Liability of Receipt of Advance, Advances adjusted, NIL, Exempt and non-GST Supplies, NIL, Exempt and non-GST Supplies and Ineligible ITC
ITC Reversal that was previously reported in GSTR-1
Additional Features of New GST Return Filing System
- The New Filing System emphasis simultaneously uploading invoices on a real-time basis to enable the recipients to take instant action.
- The most important feature of the New System is that the recipient will be able to claim ITC on a provisional basis if the supplier fails to upload invoices or file his return, which will not exceed 20% of the value mentioned. The current system does not allow any provisional credit.
Kew Noteworthy Points:
- The trial period for the new filing system will begin from July and will last till April 2020.
- In the trial period, the filing of GSTR-1 and GSTR-3B can be continued.
- From April 2020, all taxpayers will have to file the new GST returns and annexures mandatorily.
- The new filling completely snuffs out the Form GSTR-3B.
Objectives for Introducing New Gst Return System
- Tax Payment: In the current system, Full Tax liability must be paid for a tax period while filing monthly return GSTR-3B. Under the new system, total Tax liability must be paid for a particular tax period is to be paid in monthly form PMT-08, regardless of monthly or quarterly filing of GST returns.
- Number of Returns: The present System demands the filing of two returns while the new system demands the filing of just one return.