Article explains Background of Guidance Note on New GST Returns, Brief features of all types of GST return in table form, FORM GST ANX -1 AND ANX -1A (Details of outward supplies and amendment form), FORM GST ANX-2 (Details of inward supplies), FORM GST RET-01 AND RET 1A (Main return and amendment form) and Types of GST Invoices.
- In the 31st GST Council Meeting, it was decided that a New Return System under GST would be introduced for taxpayers. The main aim of the new return system is to simplify the filing process for taxpayers registered under GST.
- The Central Board of Indirect Taxes and Customs has released the proposed GST Returns forms. It is expected that the new GST returns forms – Normal, Sahaj and Sugam, shall be applicable from 1 April 2020.
- In Union Budget 2020, Nirmala Sitharaman, finance Minister has reiterated that new simplified GST returns will be implemented from 1 April 2020.
- Structure of new GST returns is mentioned in the below table.
||FORM GST ANX-1
||Annexure of outward supplies
||FORM GST ANX-2
||Annexure of inward supplies
||FORM GST RET-01/02/03
||Main Return (Monthly/ Quarterly)
||FORM GST ANX- 1A
||Outward supplies amendment form
||FORM GST RET-1A/2A/3A
||Main return amendment form
||FORM GST PMT-08
||Payment of Self-assessed tax
2. Brief features of all types of return
||For Large Tax payers
||For Small Tax Payers
|Aggregate Turnover of preceding FY
||More than 5 CR with some exceptions (Refer Annexure 1)
||Up to 5 CR
|Types of Return
||Normal Return (RET-01)
||Normal Return (RET -01) (Optional)
||Sahaj Return (RET-02)
||Sugam Return (RET- 03)
|Frequency of Return filing
|Supplier has to choose return form according to buyer criteria mentioned in this row
||Any (B to B/ B To C/ Both)
||Any (B to B/ B To C/ Both)
||B To C
||B To B + B To C
|Due dates of Payment and Return
||20th of next month
||20th of next month
||20th of next month (Form GST PMT-08)
|Name of amendment forms
||GST ANX-1A and GST RET 1A
||GST ANX-1A AND GST RET 1A
||GST ANX-1A AND GST RET 2A
||GST ANX-1A and GST RET 3A
|Reporting of HSN Level Data in GST return
||HSN code at 6 digit level for goods and services
||Optional facility to report HSN level data
|Annexures of main return
||GST ANX-1 (Outward supplies) and GST ANX -2 (Inward supplies)
3) ANX- 1 and ANX-1A: Details of outward supplies and amendment form
|ANX-1 – Details of outward supplies
||ANX- 1A – Amendment form of outward supplies
- Supplier can upload the documents (Invoices/ credit notes/ debit notes) on real time basis till 10th of following month.
For e.g. If supplier is filing April month return, he can upload invoices of April month on real time basis till 10th May
- If supplier uploads invoices of April month after 10th of subsequent month, GST portal will consider April month invoices in the return of May month.
- GST portal restricts supplier to upload documents on the GST portal during following period of every month/ quarter
- Monthly Return – 18 to 20
- Quarterly Return – 23 to 25
- Recipient can also view documents on near to real time basis
- Tax amount shall be computed by the system based on the taxable value and tax rate. The tax amount will not be editable
- Place of supply is required to be reported mandatorily for all supplies
- Applicable tax rate can be selected from the drop down menu
- Only supplier can edit and amend the details up to 10th of the following tax period
- The invoice which is accepted by the recipient shall not be eligible for amendment. For amendment in such invoice, the recipient needs to reset/unlock such invoice. Only recipient can reset/unlock the details
- Amendment permissible till the September of the next F Y or date of filling annual return whichever is earlier
- Original details of invoices shall be mandatory for amendment.
- Missing document of prior period can not be added in this ANX 1A but has to be reported in ANX 1 itself (It requires amendment of original return)
- Supplier may edit the rejected documents before filing any subsequent return.
- The invoices/ documents on which refund has already been claimed by the supplier/ recipient, it shall not be open for amendment.
- Supplier has an option to shift the documents in the appropriate table instead of amendment if documents are rejected due to reporting in wrong table
- The documents related to supplies made to composition tax payers, ISD, UIN holders may be amended by the supplier at any time and the same shall not be dependent upon the action taken of recipient.
4) ANX-2: Details of inward supplies
- Details of documents uploaded by the supplier(s) will be auto-populated in FORM GST ANX-2 on near to real time basis.
- Recipient can take credit in his return irrespective of whether the supplier files his return on monthly or quarterly basis.
- Recipient filing monthly returns can accept details uploaded by supplier till 10th of following month.
- Recipient filing quarterly returns can accept details uploaded by supplier till 10th of the month succeeding the quarter
- Recipient can take actions (Accept/ Reject/ Pending) on the auto-populated documents after 10th of the month in which such documents have been uploaded.
- Recipient can take action of Accept/ reset only till 10th of following month. However, recipient can take any action of accept/reject/pending after 10th of the following month.
- Any invoice on which no action has been taken shall be deemed to be accepted.
- The status of return filling of supplier shall be made known to the recipient in form GST ANX-2 after the due date of return filing is over.
- The documents uploaded in FORM GST ANX-1 for month ‘M’ by a supplier who did not file return for the previous two consecutive tax periods (M-1 and M-2) months shall be made available to the recipient in FORM GST ANX-2 with an indication that the credit shall not be available on such documents.
- In other words, such documents will be visible to the recipient but recipient cannot claim ITC on such inward supplies. However, the recipient can reject or keep pending until filing of return by the supplier.
- ITC of pending invoice shall not be available and the said shall be carry forward to next period.
- Documents rejected by the recipient shall be conveyed to the supplier only after filing of the return by the recipient.
5) GST RET-01 and GST RET 1A
|Normal Return- GST RET-01
||ANX- RET 1A-Amendment form
- After uploading details in FORM GST ANX-1 and taking actions on the documents auto-populated in FORM GST ANX-2, the tax payer shall file the main return FORM GST RET-01.
- Information declared through FORM GST ANX-1 and FORM GST ANX-2 shall be auto-populated in the main return GST RET-01.
- GST RET 1 return form includes details of all types of supplies, ITC claimed, tax and interest.
- GST RET 1 will take place of the GSTR 3B and ANX 1 will take place of GSTR 1 return, both (GSTR-3B and GSTR-1) which are being filed under the current system.
- Facility to file NIL return through SMS will also be available if no supplies have been made or received
- Following types of suppliers are exempt from filing monthly returns
- Composition dealer
- Input service distributor
- Non-resident registered person
- Persons liable to deduct TDS
- Persons liable to collect TCS
- Filing process of amendment return will be similar to the filing process of original return (FORM GST RET-1)
- Entries which were not auto populated from ANX 1 & 2 and which were entered manually can be amended in this form.
- Payment can be made if liability arises due to amendment in RET 01A.
- However if refund arises, no refund shall be paid but the same shall be carried forward to next tax period.
- Full revised value of document has to be reported in the amendment. If the original amount was shown as 100 but the correct amount is 120, 120 is to be shown.
- Amendment to ITC (upward/ downward adjustment) shall be reported in the main return (FORM GST RET-01) and not to be taken to the amendment return.
6) Types of Invoices
||Types of Invoices
||Accepted invoices (Locking of invoices)
||Recipient can accept invoices in the following cases:-
- When he ensures that that supplies will be received before filing of return by the recipient
- Details uploaded by supplier are correct.
(Note: Invoices neither accepted nor rejected will be deemed accepted).
||Unlocking/ Reset of the invoices
||Recipient can unlock invoices in the following cases:-
- When recipient has accepted the incorrect invoice mistakenly
||Recipient can keep pending invoices in following cases:-
- The recipient has not received the supply
- The recipient is of the opinion that there is a need for an amendment in the invoice
- The recipient is unsure about eligibility of ITC
||Recipient can reject invoices in following cases:-
- When the recipient’s GSTIN is filled incorrectly by the supplier, the invoice will be visible to a taxpayer who is not the receiver of such supplies.
||If a supplier has not uploaded an invoice or a debit note, and a recipient claims ITC of such document. This is called missing invoices. If missing invoices do not get uploaded by the supplier within the stipulated time frame, then the ITC availed with respect to such debit notes/invoices will be recovered from the recipient.
Author can be reached at [email protected]