In last articles of ‘Analysis of Proposed GST Return Applicable from 01st July 2019 Part I’, we discussed about various scenario of New Return.
Now further continuing with Analysis process, below are the details of New Article
Analysis of GST RET-1 Normal/ Monthly return
Summary of outward supplies, inward supplies attracting reverse charge, debit / credit notes, etc. and tax liability
Ø Most of the fields are auto populated from GST ANX-1.
Ø However there are certain field which will be “User Input”. Only Invoice value are required to be disclosed.
Summary of inward supplies for claiming input tax credit (ITC)
Ø Details of all the Purchase , Credit note, other voucher which is eligible to claim ITC.
Ø Inward Supplies attracting RCM- [table 3H of FORM GST ANX-1].
Ø Import of services (net of debit /credit notes and advances paid, if any and excluding services received from SEZ units)–[table 3I of FORM GST ANX-1]
Ø Import of goods [table 3J of FORM GST ANX-1]
Ø Import of goods from SEZ units / developers [table 3K of FORM GST ANX-1]
Ø ISD Credit (net of ISD credit notes) [table 5 of FORM GST ANX-2]
Advances Under GST
ØSection 12-14 of CGST Act,2017 govern time of supply. As per section 12 of CGST, the time of supply is determined with reference to the time when the supplier receives payment. Generally time of supply is earliest of issuance of invoice or receipt of payment. Time of supply is fixed at the point when “advance is received” , irrespective of the fact whether the supply is made or not. Hence GST should be paid at the time supplier receives advance payment.
Ø Recognizing the fact that small businessmen may be burdened with compliance issues with regard to GST on advances, the Government has come out with Notification no. 66/2017 dated 15.11.2017, whereby all suppliers of goods who have not opted for composition scheme, have been exempted from the burden of paying GST on Advances received.
Ø But the supplier of services are required to pay GST at the time of receipt of advance
IMPORTANT POINTS TO BE NOTICED
Ø Values of supplies will be reported in whole no. or upto 2 decimal.
Ø Details of Input on Capital Goods needs to be reported separately.
Ø Details of Input on Services needs to be reported separately.
Ø Negative values van be reported in field in which net of Debit/ Credit note and Advances paid, if any are allowed.
Ø There is no requirement of Disclosing Supplies of inter state to unregistered person Exceeding Rs.2.5 lacs in new returns.
Ø New field added
Ø Type of document
Ø Advances received on supply of services will not be reported here— Reason for same is GST ANX-1 data will auto-populated in ANX-2 which is ultimately used to take ITC. However advances for services are liable to tax but recipient will not be able to take ITC until the receipt of services and bill of supply of services.( As per Sec 16 of CGST Act, 2017)
Author Bio
