Q.1 New GST Return System

Ans: In 37th GST Council Meet it was decided that new returns for GST will be implemented from April 2020, and the format was earlier decided by 31st GST Meet.

In the 31st GST Council Meet (Dec 2018), 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.

Q.2 Plan to Transit in New System

Ans: 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.

New GST Returns

Q.3 New Return Forms Are:

Ans: 

  • RET-1 {Normal Return} (Having Anx 1 For Output Supply and Anx 2 For Inward Supplies)
  • RET-2 {Sahaj}
  • RET-3 {Sugam}

Q.4 Differences between Current Vs New GST Return Systems

Ans: 

OLD Return New Return
Taxpayer If turnover is up to Rs 1.5 crore in the preceding financial year Taxpayers Shall considered as small. If turnover is up to Rs 5 crore in the preceding financial year Taxpayers Shall considered as small.
Returns GSTR – 1,3B,4,5,6,7 RET- 1, 2, 3
Invoice

Uploading

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 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 Invoice 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
Return Till 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

5. Understanding of New GST Returns

Ans: 

Particulars Normal (RET-1) Sahaj (RET2) SUGAM (RET-3)
Applicable (Turnover) More Than 5 Cr (mandatory)

Upto 5 Cr (Optional)

Upto 5 Cr (Optional) Upto 5 Cr (Optional)
Period Qtrly /Monthly Qtly Qtrly
Details of Supply Covered
B2B YES No YES
B2C YES Yes YES
Export YES No No
SEZ Unit YES No No
Deemand Export YES No No
Supply to E Commerce YES No No
Nil Rate/ Exempt /Non GST Yes (Declaration) Yes Yes
Types of Inward Supplies Covered
RCM YES Y Y
Import Service/ Goods YES N N
Import From SEZ YES N N
Credit of Missing Invoice & ISD
Missing Invoice Credit YES NO NO
ISD Credit Receive YES NO NO
HSN Code
On Basis of Turnover >5 Cr, in Export, Import and SEZ Mandatory

<=5 Optional

Optional Optional
NIL Return By SMS
NIL Return By SMS YES YES YES

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