Introduction

This article has been updated based on the CBIC Press Release dated 11th June 2019, ‘Transition plan to new GST returns’, which informs on the time-line available and applicable for the new returns

The GST council in its 27th council meeting on 4th May 2018 had approved the proposed simplified GST returns format.

In the 31st GST council meeting dated 22nd December 2018, the new return filing system has been proposed to be introduced on a trial basis with effect from April 2019 and through recent press release intend to make it mandatory from October 2019 in a phased manner. The formats along with detailed instructions were made available on the GST portal on 8th March 2019. Readers could find it in portal https://www.gst.gov.in/ > Downloads > Proposed Return Documents. (or upon login – right most tab).

The new returns are being introduced replacing GSTR 1 and GSTR 3B which is being filed by majority of the assessee. Those who are under composition scheme could continue to file GSTR 4. It is estimated that around 17% of the assessee are under composition scheme. Other returns such as Non-Resident Foreign Taxpayer Returns (GSTR 5), ISD returns (GSTR 6), TDS returns (GSTR 7), TCS Returns (GSTR 8), and Casual Taxable Person (GSTR 11) would continue as it is.

The tax payers were kept in the dark about requirement of filing GSTR 2 & 3 from July 2017 onwards. Only recently, it was understood that the new GST returns formats would be introduced by October 2019, which could render GSTR 2 & 3 ineffective for the past also.

Month Reference Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20
LARGE TAXPAYERS (Previous Year Aggregate T/o > 5 crore)
GSTR 1 × × × × × ×
GSTR 3B × × × ×
RET-01 similar to GSTR 3, monthly × × × ×
ANX-01 similar to GSTR 1 × ×
ANX-02 similar to GSTR 2 × ×
PMT-08 only for small
ANX-01: Similar to GSTR-1, although includes details of imports, reverse charge applicability etc.

ANX-02: Similar to GSTR-2, main difference being, the supplier cannot add invoices missed by the vendor to claim ITC.

Month Reference Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20
SMALL TAXPAYERS (Previous Year Aggregate T/o < 5 crore)
GSTR 1 × × × ×
GSTR 3B × × × × × ×
RET-01 similar to GSTR 3, quarterly × × × ×
ANX-01 similar to GSTR 1 × × × × ×
ANX-02 similar to GSTR 2 × × × × ×
PMT-08 only for small × × ×

Basic structure of new returns:

There are three types of GST returns proposed to be introduced based on turnover limit and type of transactions. The tax payers could choose the type of return based on these factors. Alternatively, irrespective of turnover, the tax payer could choose to file the new NORMAL return. More details provided in below table:

Particulars SAHAJ SUGAM NORMAL
Threshold limit – Turnover Below Rs.5 crore (optional) Below Rs.5 crore (optional) Above Rs.5 crore (mandatory) Below Rs.5 cr. (optional)
Periodicity of payment Monthly Monthly Monthly
Periodicity of returns Quarterly Quarterly Monthly (above Rs.5 crores turnover) Quarterly (below Rs.5 crores turnover)
Forms to fill ANX-1, ANX-2 & RET-02 ANX-1, ANX-2 & RET-03 ANX-1, ANX-2 & RET-01
Allowed to file (OUTPUT)
  • B2C & RCM
  • Nil rated, exempt, non-GST supply allowed.
  • B2C, B2B & RCM
  • Nil rated, exempt, non-GST supply allowed.
B2B, B2CS, RCM, Exports, E-commerce, Nil rated, exempt, etc. (All types)
Not allowed to file (OUTPUT) B2B, Exports, E-commerce, etc. (Anything other than B2C & RCM cannot be filled) Exports, E-commerce, etc. (Anything other than B2B, B2C & RCM cannot be filled) -NA-
Allowed to File (INPUT) Auto-populated ITC Auto-populated ITC Suo-moto ** & auto-populated ITC
Not allowed to File (INPUT) ITC disallowed on invoices not uploaded by vendor ITC disallowed on invoices not uploaded by vendor No restriction
ANX -1 Outward liability, imports, and inward supplies attracting reverse charge.
ANX-2 Detailed of auto-drafted inward supplies
RET 1 NORMAL – Refer separate note shared as annexure to this document.
RET 2 SAHAJ – Most of the information auto populated.
RET 3 SUGAM – Most of the information auto populated.

** – According to press release of GST council in July 2018, taking ITC on invoices not uploaded by vendor could be allowed only for first 6 months after introduction of new returns (expected) being transitional phase. Thereafter, ITC could be allowed only based on invoice details uploaded by vendor while filing returns.

It is also necessary to note that the interest would be auto-computed by system for delayed filing of returns, delayed payment of taxes, late reporting of invoices of preceding tax periods and rejection of accepted documents, i.e. ITC considered eligible instead of ineligible.

The government has also recently enabled prototype of new returns for testing/users to get a feel of the upcoming change which can be viewed in the GST portal upon login. (right most tab after E-way bill systems). Screenshot provided for understanding:

GST offline Tool

Additional requirements

The new formats require more information from tax payers which otherwise not expected in present return forms such as GSTR-1 and GSTR-3B. This could increase the time and effort for monthly / quarterly compliance. Few such additional information required are listed below:

♦ HSN to be maintained at 6-digit level (not 4-digit level) in SUGAM and NORMAL return

♦ Reverse charge liability details with GSTIN & HSN to be provided in all returns

Where RCM supplier is unregistered, disclosure of PAN is mandatory in all returns

♦ Details of import of goods POS-wise, HSN-wise & document wise to be provided. (GSTIN also required for SEZ transaction). Tax payers could consider obtaining these details from CHA.

♦ Details of import of service POS-wise and HSN-wise needed.

Challenges expected upon implementation:

The new returns could pose new challenges for the tax payers. In previous para, the additional information required have been discussed. Appropriate measures such as training of staff, understanding the new returns and necessary changes in the system of report generation could be considered by the tax payers. Following is the list of additional challenges which could be expected by the tax payers:

♦ Need of filing 2 forms ANX-1 & ANX-2. Even though ANX-2 is auto populated, to ensure correctness of information, cross verification with invoices necessary. There certain information which needs manual intervention.

♦ Supplier to obtain data as to whether the vendor is filing monthly/quarterly returns which otherwise could impact credits.

♦ Real-time uploading of invoices allowed. Once, accepted by recipient, until it is reset/ unlocked by recipient, supplier cannot make amendments. This could increase efforts to supplier uploading ANX-1.

♦ Amendments can be made only by the supplier.

♦ Recipient has the option of ‘reject’ or ‘keep pending’ the auto-populated invoices. If not opted for either, it would be deemed acceptance.

♦ Credit taken on missing invoices can be availed upto 20% of the ITC that auto-populates based on vendors GST return filings. [Based on Section 43A of CGST Amendment Act which is yet to be notified].

♦ For import of goods, until GST portal is linked to ICEGATE portal, details need to be manually entered in ANX-1. Once linked will auto-populate in ANX-2. This could increase the work in case of high import transactions.

♦ There is a need to disclose of GSTIN-wise invoice-level details and re-payment of ITC claimed where vendor not filed his returns for 2 months. For this having track of invoices filed/ not filed by vendors would be necessary.

♦ The ITC claim is linked to vendor payment & filing. This requires reconsideration of payment terms with vendor including change in agreements to take care of non-compliance by vendors.

♦ Change in ERP/ software required to fetch details such as HSN wise summary, POS summary etc. to meet the reporting requirements of new return including tracking data of vendors.

Issues which needs clarity

Though detailed instructions including additional notes have been provided in the formats released, there are few issues which are not addressed / clarity not provided. Unless otherwise clarified, the tax payers should consider the following issues before proceeding to submit information in the new returns:

  • Amendments of FY 2019-20 in the new GST returns. No clarity yet on disclosure and tax payment.
  • No clarity on number of times the details in new GST returns could be amended. As per the old press release of July 2018, amendments would be allowed a maximum of 2 times only.This may have to be increased.
  • It is not clear if auto computation of interest would be on gross liability or net liability. In-principle, press release mentioned that interest should be on net liability. However, no amendment in law/ notification till date.
  • Tracking and claiming ITC on missing invoice upto 20% of auto-populated ITC only.
  • Table 3L of the NORMAL return requires disclosure of GSTIN and invoice-level data of vendors who have not filed GST returns for 2 tax periods. However, this table cannot be amended. No clarity on alternative option to correct any errors made.
  • Transactions not disclosed in GSTR 1/3B – Can be disclosed now through new returns subject to time limits.
  • Transactions not disclosed in either GSTR 1/3B – Can be included in new returns and adjusted through Table 3A(8) and 3C(5) of Form RET-01.

There could be various other issues could crop up during actual filling of returns. Readers could refer to the annexed document to understand the format of NORMAL return in detailed manner.

Conclusion:

Although, the press release names it as “Simplified Returns”, based on preliminary study of the various disclosure requirements, challenges and changes, the returns may not be accepted as ‘simplified returns’ by the tax payers. Not aligning the systems of business with GST requirements could have multi-fold impact on the business which could include following:

  • Operations –Losing top compliant customers
  • Working Capital –Having stringent payment terms forced on by customers
  • Cost to Company– Bearing high interest and penalty costs for non-compliance, if any
  • Compliance –Facing show cause notices and demands after 1 or 2 years.

When the new returns are mandated, the tax payers could consider opting for ‘NORMAL’ returns which could avoid need of keeping track of conditions to be fulfilled for the other returns. Ensure ERP/ software application is customised to meet the new requirements.

For the initial period, professionals could be approached to understand and file the returns as per the new requirements. They could also help in setting the standard operating procedures for better GST compliance, periodic review of compliance including GST ITC, liability etc.

ANNEXURE TO ABOVE:

SUMMARY OF NORMAL RETRUN:

This document contains discussion on various details to be filled in the new ‘NORMAL’ return. Readers could refer to the formats with instructions provided on the GST portal. In the mail also, it is being shared.

Coverage:

♦ Introduction

♦ Profile Updation

♦ Form GST ANX-1 & Amendment ANX-01A

♦ Form GST ANX-2

♦ Form RET-1 & Amendment RET-1A

Introduction Normal monthly return:

The registered person whose aggregate turnover during preceding financial year exceeded Rs. 5 crores, have to file normal return (i.e. RET-1) on monthly basis mandatorily. The registered person has to file 3 returns such as Form GST ANX-1, Form GST ANX-2 and Form GST RET-1 every month. In case of lesser turnover also, there is an option to file normal returns instead of SAHAJ / SUGAM return.

Here we would discuss each type of return form to be filed in details.

Profile Updation:

At beginning of every financial year, a profile updation form needs to be filled online by the registered person to intimate the department about type of GST return he wishes to file.

There are 3 types of returns such as Normal (monthly/quarterly), Sahaj and Sugam which could be selected for filing based on registered person’s aggregate turnover during the preceding financial year.

The registered person could switch from one type of return to another in the following scenario.

From To Comments
Quarterly/Monthly (Normal) Monthly/Quarterly (Normal)
  • Once at time of filing first return.
  • It cannot be changed during the FY.
  • Have the option to change while filing first return in next FY.
Quarterly (Normal) Sahaj/Sugam Once in a FY at beginning of any quarter.
Sugam Sahaj Once in a FY at beginning of any quarter.
Sahaj Sugam/Quarterly (Normal) More than once in a FY at beginning of any quarter.
Sugam Quarterly (Normal) More than once in a FY at beginning of any quarter.

Form GST ANX-1: Annexure of outward supplies, imports and inward supplies attracting reverse charge:

Form GST ANX-1 would be for uploading the details of outward supplies, import of goods, import of services and inward supplies on which GST to be discharged under reverse charge.

Form GST ANX-1 would pop up with a questionnaire which is divided into 2 parts.

In Part A, registered person has to declare that all the details uploaded are deemed to be tax payable for such period and an option whether any changes in Part B questionnaire filed for last tax period.

In Part B, registered person has to select which type of transaction details to be uploaded by him.

Coverage and analysis of the contents of the form GST ANX-1:

To obtain clarity in relation to the contents below, it is suggested to view the ANX-01 format simultaneously (attached in email – page 5).

Contents Coverage and analysis
GSTIN/UIN
  • B2B, SEZ supplies, deemed export, import of goods from SEZ and missing documents (ITC claimed) transactions.
  • Inward supplies from registered parties attracting RCM. In case of supplies from URP where taxes to be paid under RCM, PAN number to be obtained.
Place of Supply (Name of State/UT) All type of transactions except for export of goods and services.
Documents details

1. Type

2. No

3. Date

4. Value

  • Type of documents such as invoice, debit note, credit note, bill of supply, bill of entry etc.
  • Document details to be uploaded for all transactions except for B2C, inward supplies attracting RCM and import of services.
  • Value here refers to total invoice value.
HSN code
  • HSN code needs to be uploaded documentwise for all transactions except for B2C cases (including RCM & imports).
  • Tax payers with annual turnover of more than 5 crore have to upload at least 6-digit HSN code.
  • Tax payers with annual turnover upto 5 crore shall have an optional facility to report HSN code or leave it blank.
Tax rate (%) Tax rate for IGST to be selected from drop down and for CGST & SGST, same shall be applied at half rate.
Taxable value Taxable value of supply to be uploaded here.
Tax amount (IGST/CGST/SGST/Cess)
  • Tax amount would be computed automatically based on taxable value and tax rate mentioned.
  • Same cannot be altered and could adjust only by way of DN/CN
  • For Cess wherever applicable, to be keyed in manually.
Shipping bill/ Bill of export details (No and date) For export of goods and import of goods from SEZ, shipping bill / Bill of export details available upto date of filing of the return to be disclosed and separate functionality would be given for remaining shipping bills not received before filing date.

Analysis of tables of Form GST ANX-1:

Here, we would analyse the tables given for different type of transactions and comparison with the present GST returns.

Sr.No Table No Disclosure in NEW returns In present GST returns
1. 3A. Supplies made to consumers and un-registered persons (Net of debit / credit notes)

POS, TAX%, TV

Supplies to unregistered persons (B2C) to be reported net of DN/CN. Supplies to B2C net of DN/CN are being disclosed in Table 7 of GSTR 1, place of supply and tax rate wise.
2. 3B. Supplies made to registered persons (other than those attracting reverse charge) (including edit/amendment)

GSTIN, POS, DOC details, HSN, TAX%, TV

  • Supplies to registered persons (B2B) to be reported in this table.
  • Supply of services by SEZ to DTA have to report in this table.
  • Supply of goods by SEZ to DTA to be disclosed in Table 3K by DTA.
  • Supplies to SEZ would be disclosed in Table 3E/3F.
  • Deemed exports where supplier is going for refund disclose in Table 3G.
Supplies to registered persons (B2B) and supply of services by SEZ to DTA are being disclosed in Table 4A GSTR 1.
3. 3C. Exports with payment of tax

DOC details, HSN, TAX%, TV, SB

  • Export of goods or services with payment of IGST to be reported in this table.
  • Shipping bills details to be disclosed.
Export of goods or services are being disclosed in Table 6A of GSTR 1.
4. 3D. Exports without payment of tax

DOC details, HSN, TAX%, TV, SB

  • Export of goods or services without payment of IGST under LUT or bond to be reported in this table.
  • Shipping bills details to be disclosed.
Same as above
5. 3E. Supplies to SEZ units/developers with payment of tax (including edit/amendment)

GSTIN, POS, DOC details, HSN, TAX%, TV

Supply goods or services to SEZ with payment of IGST to be reported in this table. Supply goods or services to SEZ are being disclosed in Table 6B of GSTR 1 with option to select with payment of taxes.
6. 3F. Supplies to SEZ units/developers without payment of tax (including edit/amendment)

GSTIN, POS, DOC details, HSN, TAX%, TV

Supply goods or services to SEZ without payment of IGST under LUT or bond to be reported in this table. Supply goods or services to SEZ are being disclosed in Table 6B of GSTR 1 with option to select without payment of taxes.
7. 3G. Deemed exports (including edit/amendment)

GSTIN, POS, DOC details, HSN, TAX%, TV

  • All supplies treated as deemed export to be uploaded in this table.
  • Where supplier is going for refund, disclose it here. If not, to be shown under Table 3B (B2B).
Deemed export are being disclosed in Table 6A of GSTR 1.
8. 3H. Inward supplies attracting reverse charge (to be reported by the recipient, GSTIN wise for every supplier, net of debit/credit notes and advances paid, if any)

GSTIN/PAN, POS, HSN, TAX%, TV

  • All supplies attracting reverse charge to be reported net of DN/CN/advances, GSTIN and rate wise.
  • If the supplies attracting reverse charge from unregistered person, then to be reported PAN-wise and tax rate wise.
Details of supplies attracting reverse charge are not being disclosed anywhere in GSTR 1 same are being disclosed in Table 3(1)(d) of GSTR 3B as consolidated value. It is not rate wise or GSTIN wise.
9. 3I. Import of services (net of debit/ credit notes and advances paid, if any)

POS, HSN, TAX%, TV

  • Import of services to be reported in this table rate wise and to be net of DN/CN/advance if any.
  • Services received from SEZ not to be reported in this table.
Details of supplies attracting reverse charge are not being disclosed anywhere in GSTR 1 same are being disclosed in Table 3(1)(d) of GSTR 3B as consolidated value. It is not rate wise.
10. 3J. Import of goods

POS, DOC details, HSN, TAX%, TV

  • Details of IGST paid on import of goods to be reported in this table.
  • These transactions would have suffered IGST and would not be considered for liability again.
Details of import of goods are not being disclosed in GSTR 1 and GSTR 3B for liability.
11. 3K. Import of goods from SEZ units / developers on a Bill of Entry

POS, DOC details, HSN, TAX%, TV

  • Goods received from SEZ on bill of entry to be reported in this table.
  • These transactions would have suffered IGST and would not be considered for liability again.
Details of import of goods are not being disclosed in GSTR 1 and GSTR 3B for liability.
12. 3L. Missing documents on which credit has been claimed in T-2 /T-1 tax periods (1 tax period for quarter)

GSTIN, POS, DOC details, HSN, TAX%, TV

Where the tax payer availed ITC but documents not yet uploaded by the current tax period by the supplier after lapse of two tax periods (or 1 tax period for a quarter) to be reported in this table. Earlier Information of defaulters and fraudulent practitioners were not traceable. Now possible.
13 DN/CN
  • DN/SN issued by supplier other than reverse charge shall be reported in respective tables from Tables 3A-3G.
  • Where DN/CN issued for differences in tax rate, taxable value shall be zero and only tax amount would be reflected.
DN/CN issued by supplier for registered persons (B2B) are being disclosed in Table 9B of GSTR 1.
14 4. Supplies made through ECO liable under TCS
  • Table 3B (B2B) – tax invoice for supplies made through ECO
  • TCS details to be deducted by ECO to be updated by the supplier in Table 4.
  • Supplies made through ECO, but not liable under TCS – need not disclose in Table 4.

Other important points:

1. Registered person could upload the document details on real time basis during the month or of prior period on or before due date for filing return for September from end of FY or actual date of filing annual return, whichever is earlier.

Exceptions: Details would not be allowed for uploading from 18th to 20th in case of monthly returns and 23rd to 25th in case of quarterly return.

2. Any documents details uploaded after filing return for month would be added to liability of such subsequent month in which details are uploaded.

3. Advances & advance adjustments would not be reported in GST ANX-1, instead RET-01.

4. Recipient would get credit based on documents uploaded by supplier up to 10th of following month to which such documents pertain to.

5. Details of documents prior to introduction of new return scheme disclosed in the new return would be subject to payment.

6. Only supplier can make edits/amendments.

7. Editing of documents up to 10th of following month – The supplier could edit or amend details if recipient has not accepted. If recipient accepted, then he has to reset / unlock such documents. All the amendments could be done only by supplier.

8. Edit/Amendment after 10th of the following month – Details uploaded up to 10th of following month would be auto-populated to recipient and he has to accept/reject or pending such documents.

    • Rejected documents would be conveyed to supplier only on filing of return by recipient.
    • Edited documents would auto-populate for recipient once more.

9. Shifting of documents – Where particulars of documents are correct but disclosed in wrong table. The recipient would reject the same. Instead of amending it, a facility to shifting such documents to appropriate table would be provided.

10. In relation to amendments to documents issued to person not filing GST returns, supplier could amend any time.

Amendment in Form GST ANX-01A:

1. Table 3B, 3E, 3F and 3G – B2B, Supplies to SEZ and Deemed exports – amendments to be done through GST ANX-01 only.

2. Other Tables being 3A, 3C, 3D, 3H, 3I, 3J, 3K amendment to be made through Form GST ANX-01A.

3. Table 3L cannot form part of amendment table. Edit and amendments also may not be allowed in Form ANX-01.

4. For changes in Supplies made through ECO liable under TCS (Table 4) – Original and revised GSTIN to be provided.

5. Invoices/documents on which refund has already been claimed, would not be open for amendment.

6. Although not notified, in the press releases it was provided that Amendments would be allowed for a maximum of 2 times only.

Form GST ANX-2: Details of auto-drafted inward supplies:

To obtain clarity in relation to the contents below, it is suggested to view the ANX-02 format simultaneously (attached in email – page 12)

1. In Table 3A of form GST ANX-2, the details of outward supplies uploaded by the supplier would be auto populated to the recipient with the option to either accept, reject or keep pending.

2. In Table 3B and 3C of form GST ANX-2, ITC details of import of goods from SEZ and overseas would be taken from Table 3J and 3K of form GST ANX-1 for initial period and then same is expected to be auto populated from ICEGATE in future.

3. Recipient could accept (only) upto 10th of the following month. After 10th of following month, recipient may accept, reject or keep pending of documents auto populated in his annexure.

4. If no action taken on documents, it is deemed accepted upon filing the return and ITC would appear in table 4A of GST RET-01. Therefore, to reduce burden on administrative team, suggested to perform reject and keep pending function only, rest would be deemed accepted.

5. Once the tax payer completes the process of accept, reject or keep pending, a summary of ITC would be generated.

6. Accepted documents means supplies received and details given in documents reported in form GST ANX-1 of supplier are correct and same would not be available for amendments for supplier.

7. Any errors in the documents such as wrong HSN, tax rate, wrong GSTIN which cannot be corrected through financial DN/CN, are to be rejected.

8. Rejected documents would be shown to supplier and he could make corrections in subsequent GST ANX-1.

9. Pending documents would be where recipient deferred the decision of accepting or rejecting the invoices. Ex: Not received goods and would not be available to supplier for amendments.

10. Supplier return filing status would be made known to recipient after the due date for filing the return.

11. Where document accepted and ITC availed and in future such documents need to be rejected, a separate functionality would be given for reversal along with interest.

12. There could be situation where the supplier has not filed the GST RET-01 for two consecutive tax periods but continues to upload the documents in form GST ANX-1. In such scenarios, the documents are auto populated to recipient only with option of either reject or keeping pending. Accept function would be allowed after the supplier files the return in form GST RET-1 (along with payment).

Form GST RET-1: Monthly / Quarterly (Normal) Returns:

Form GST RET-1 would be auto populated from the data uploaded in form GST ANX-1 and form GST ANX-2 by the registered person. There would be few tables where the registered person has to key in the details.

The details which the registered person needs to key in are discussed below:

Sr.No User Input Analysis of NEW returns In present GST returns
1. Liability relating to the period prior to the introduction of current return filing system and any other liability to be paid.
  • The liability pertaining to tax periods prior to new return format which were uploaded in GSTR 1 but payment not made in GSTR3B yet. Such liability to be added manually by tax payer in this table.
  • Where the tax payer had not disclosed the liability in GSTR 1 and GSTR 3B, such transactions to be uploaded in form GST ANX-1 and not to be reported in this table.
Was to be merged with current month data based on Circular 26/2017.
2. Advances received (net of refund vouchers and including adjustments on account of wrong reporting of advances earlier). Where GST to be discharged on advances received for services to be reported in this table after giving effect to refund vouchers if any. Advance amount received are disclosed in Table 11A of GSTR 1 and payment would be done in GSTR 3B.
3. Advances adjusted Advance amount received in earlier tax period and adjusted against the supplies being shown in this table.

Excess adjustments if any, shall be accounted in next tax period.

Advance amount adjustments are disclosed in Table 11B of GSTR 1.
4. Details of supplies having no liability The following details to be reported

  • Exempt and NIL rated supplies
  • Non-GST supplies
  • Outward supplies attracting reverse charge net off DN/CN
  • Supply of goods by SEZ to DTA
  • Details of NIL rated, exempted and non-GST supplies were disclosed in Table 8 of GSTR 1.
  • Details of outward supplies attracting reverse charge were disclosed in Table 4B of GSTR 1.
5. Eligible credit (after 1st July, 2017) not availed prior to introduction of this return but admissible by law. Any eligible credits not availed in GSTR 3B could be reported in this table as this would not auto populate in GST ANX-2.

ITC in relation FY 2018-19 (subject to time limit), and FY 2019-20 to be disclosed.

FY 2017-18 credit upto March 2019 GST returns.
6. Provisional ITC on documents not uploaded by suppliers (net of ineligible credit). The tax payer could avail the eligible ITC on documents which are not uploaded by supplier upto a maximum of 20% of ITC furnished by vendors.

Based on section 43A of CGST Act (Amendment yet to be notified)

Once the supplier upload document in subsequent tax periods, then tax payer has to accept and reverse the same manually.

NA
7. Upward adjustment in ITC due to receipt of credit notes and all other adjustments and reclaims. There would be a situation where CN issued against an invoice on which recipient availed NIL or partial credit.

Acceptance of CN would lead to reversal of credit. It may lead to double reversal of credit.

To avoid double reversal of credit this table has been provided.

NA
8. Supplier not eligible for credit (including ISD credit) Supplier Out of net credit available in Table 4A) The tax payer has to accept all eligible and ineligible credit in GST ANX-1 and same would be auto populated in GST RET-1.

Out of total credit in Table 4A, ineligible credit needs to be reversed in this table.

9. Reversal of credit in respect of supplies on which provisional credits has already been claimed in previous tax periods but documents have been uploaded by supplier in current tax period Where the recipient availed ITC based on self-assessment but document not uploaded by supplier in such tax period but when supplier upload such document in subsequent tax period, recipient has to report in this table for reversal. Otherwise it would amount to double availment of ITC.
10. Reversal of ITC as per law (Rule 37, 39, 42 & 43) The following reversals to be reported in this table.

  • Rule 37 – Reversal of ITC in case of non-payment of consideration within 180 days to supplier.
  • Rule 39 – ISD reversal
  • Rule 42 – Manner of distribution and reversal of ITC on inputs and input services.
  • Rule 43 – Manner of distribution and reversal of ITC on capital goods.
Rule 37 and 39 reversal are being disclosed in Table 4(B)(2) of GSTR 3B

Rule 42 and 43 reversal are being disclosed in Table 4(B)(1) of GSTR 3B

 

11. ITC on capital goods Out of ITC available in Table 4C, ITC claimed on capital goods to be reported in this table.
12. ITC on services Out of ITC available in Table 4C, ITC claimed on services to be reported in this table.

Other important points:

1. Facility to file NIL return through SMS would be made available if no supplies made or received.

2. Interest and late fee to extent of late filing of return, making late payment of taxes, uploading preceding period invoices computed by system. But interest due to reversal etc… shall be entered by tax payer on self-assessment basis.

3. Suggested utilization of ITC will be made available in system. Tax payer can change as long as per provisions of Act.

4. Value of inward supplies under RCM and import of services will not add to turnover. Only added to liability.

Amendment in Form GST RET-01A:

1. Amendment can be filed for a month/quarter only. (multiple months/quarters cannot be merged into one period)

2. Where an amendment results in additional tax liability – payment to be made.

3. Where an amendment results in negative tax liability – refund shall not be provided, although, it would be carried forward to GST RET-01 of the next month for adjustment of liability.

4. Revised values to be provided in amendment return, and not additional values. (i.e. Original value 100, additional value 20, revised value 120).

5. Amendment to ITC to be shown in the main GST RET-01 and not here.

6. Although not notified, in the first press release of July 2018, it was provided that Amendments would be allowed for a maximum of 2 times only. Clarity needed on this.

For any further clarifications/ queries in this regard you may kindly reach out to mahadev@hiregange.com, akshay@hiregange.com and abhilash@hiregange.com

Also Read Earlier Article on the subject which was Published in April 2019- Critical Aspects for GST Returns in 2019

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6 Comments

  1. AkshayH says:

    New GST returns effective from April 2020 only.
    ITC restriction being brought in through Rule 36(4) – maximum credit eligible in GSTR 3B = 120% of eligible credit in GSTR 2A. (author view – Not in line with the law, against basic rights under constitution and Section 43A not notified, procedure and difficulties not considered, would be quashed or relaxed soon).

  2. Sudha says:

    Dear Sir,

    Can you explain why deemed exports should be reported in ANX-2 under Table 3 ? Are those vouchers are same which we have declared in our ANX-1? Please explain.

    1. Akshay says:

      Deemed exports need not be disclosed in ANX-2. ANX-2 – no manual additions allowed.
      PleaseG refer Table 3B, 3G in article for clarity on deemed exports.

  3. AkshayH says:

    Changes in the article not updated
    1) PMT-08 to be filed by even Large Taxpayers having Quarterly return filing option.
    2) Adjustments in new returns under Table 3A(8) and 3C(5) when either missed to report in GSTR 1/GSTR 3B
    3) Nil-rated, exempted and non-GST supplies allowed but need not be reported for Sahaj & Sugam filers.

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