Government to continue with the existing and improved GST Return System, dumps new system of filing returns
The government plans to improve existing GST return filing system instead of rolling out a new GST Return filing model. The new GST return filing system was supposed to be launched on 1st 2020. Information is shared by Shri Yogendra Garg, Principal Commissioner, GST Policy at CBIC, in a webinar hosted by Assocham. He said said that the move is aimed at making GST compliance much easier.
What was the new GST Return Filing System?
- In the 31st GST Council Meet, it was decided that a New Return System under GST would be introduced for taxpayers. This system will contain simplified return forms, for ease of filing across the registered taxpayers.
- Under the New Return System, there is one main return called FORM GST RET-1, which will contain details of all supplies made, input tax credit availed, and payment of taxes, along with interest, if any. This return will have two annexures called FORM GST ANX-1 (Annexure of Supplies) and FORM GST ANX-2 (Annexure of Inward Supplies).
- The return will be filed monthly, except in the case of small taxpayers (turnover up to Rs 5 crore in the previous FY), who can opt for the quarterly filing of returns. However, tax will need to be paid monthly in FORM GST PMT-08by those taxpayers who have opted to file their returns quarterly
- A mechanism for the continuous upload of revenue invoices on a real-time basis
- Input tax credit can be claimed based on invoices uploaded by the supplier
- Missing invoices and amendments, if any, can be made by filing an Amendment Return
- A user will also get HSN via his GST ANX-2, wherever a supplier was supposed to declare the HSN code.
Improvements planned in the Current GST Return filing System
The GST Network, the IT support of the GST regime, is working on modifying and improving the current returns and will soon announce an advanced version of the existing system.
- Government is planning to Introduce new form GSTR 2B, which will be like GSTR 2A and will have details of purchases of the company or business with added information on input tax credits (ITC).
- GOvt is planning to make existing GSTR 1 form, which captures sales-related information, more detailed.
- The Form GSTR 3B, which gives the tax computation, will be auto-populated.
- New features including matching tool for comparison of GSTR 2A with purchase register, communication channel between buyer and seller, and an improved comparison table of tax liability and input tax credit (ITC) after incorporating ITC on IGSTpaid on imports are likely to be added in the new improved version of the existing return system
- Improving the process of linking GSTR1 with GSTR3B and GSTR2A data with GSTR3B for flow of input tax credit.
Further, E-invoicing, a form of electronically-authenticated invoices, will be implemented from 1 October only for businesses with turnover of Rs 500 crore or more. Earlier, it was planned to implement e-invoicing for businesses with turnover of Rs 100 crore or more in a year.
Author Bio
You can”t believe, I had given approx. 60-70 presentation on New GST Returns but by dumping It. My expectation for GST returns goes down