The New Return System proposed under Goods and Services Tax (GST) was implemented on trial basis from 1st July, 2019 with 1st October, 2019 being date when the same would be mandated for all taxpayers in phased manner. But, the GST Council in its 37th Meeting held on 20th September, 2019 in Goa decided to extend implementation further and kick start the New Return System from the beginning of the financial year 2020-21 i.e. 1st April, 2020. But, in the 39th GST Council Meeting held on 14th March, 2020, New Delhi, it was decided to continue with the existing system of return filing till September, 2020.

Old Vs New

In the present scenario the registered persons, normally, are required to file Form GSTR-1 (Return of outward supplies) as per section 37 of the CGST Act, 2017, Form GSTR-2 (Return of inward supplies) as per section 38 of the CGST Act, 2017 and Form GSTR-3 (Consolidated/ Summary Return) as per section 39 of the CGST Act, 2017 but the returns Form GSTR-2 and Form GSTR-3 was suspended by the Government and the summary return in form of Form GSTR-3B was introduced under Rule 61(5) of the Central Goods and Services Tax Rules, 2017 (“CGST Rules”) in their place. So, currently registered persons are required to file monthly GSTR-3B by the 20th of the succeeding month and monthly/quarterly GSTR-1 depending on the turnover threshold of Rs.1.5 crore.

On the other hand, the New Return System is to be introduced through section 43A of the CGST Act, 2017 through The CGST (Amendment) Act, 2018 which was made effective from 01.02.2019 vide Notification No.02/2019-Central Tax. In the New Return System, there will be three main components: Form GST RET-1 (Main Return) and its two annexures i.e. Form GST ANX-1 (for outward supplies) and Form GST ANX-2 (for inward supplies). The main return i.e. Form GST RET-1 will be available in three forms for quarterly fillers (turnover of upto Rs. 5 crores in preceding financial year) namely: Form GST RET-1 (for Normal quarterly fillers), Form GST RET-2 (Sahaj, for suppliers having B2C transactions only) and Form GST RET-3 (Sugam, for suppliers having both B2C and B2B transactions). But, the registered persons opting to file quarterly return, are required to pay tax on monthly basis through Form GST PMT-08 for the first two months of the quarter and through Form GST RET-1/2/3 for the last month of the quarter.

New Return Forms and features

Forms

Features

Form GST RET-1 (Normal)

  • Periodicity- deemed monthly/ unless quarterly filing is opted by the taxpayers having aggregate annual t/o of upto Rs.5 crores in preceding F.Y.
  • Aggregate T/o- newly registered taxpayers deemed to be zero
  • E-commerce operator can opt
  • Nil return through SMS
  • Information auto-populated through Form GST ANX-1 and Form GST ANX-2
  • Declare all types of outward and inward supplies and take credit on missing invoices

Form GST ANX-1

  • Outward supplies, inward supplies attracting RCM  and details of import of goods and/or services
  • Real time uploading of documents
  • Due date of uploading the invoice is last date of furnishing of  return for the month of September or second quarter following the end of financial year or actual date of furnishing relevant annual return
  • Supplies attracting reverse charge uploaded by recipient with PAN, if received from un-registered persons
  • At-least 6 digit HSN for suppliers with annual aggregate t/o of more than Rs.5 crores other have option to fill HSN wise data or leave it blank
  • Value of supplies and tax amount to be reported in whole number or upto max. 2 decimal points
  • Supplies to be reported net of debit/ credit notes. Negative fig. can also be uploaded
  • Documents can be edited by supplier only upto 10th of following month, if the same is not accepted by recipient upto the said date
  • Documents in relation to supply made to composition taxpayers, ISD, UDIN holders etc. can be amended at any time irrespective of action taken by recipient.

Form GST ANX-2

  • Details uploaded by suppliers auto-populated on near real-time basis
  • Recipient can accept, reject or keep pending upto 10th of following month
  • Documents on which no action is  taken shall be deemed to be accepted
  • Return filing status of supplier will be shown
  • Credit in respect of documents for month or quarter ‘T’ will not be available where supplier has not furnished the return for previous two consecutive tax periods (T-1 and T-2). However, recipient can reject or keep pending such documents.

Form GST RET-2 (Sahaj)

  • Option for taxpayers with aggregate t/o of upto Rs.5 crores in preceding F.Y.
  • Supplies only to consumers and unregistered persons (B2C supplies)
  • Supplies attracting RCM can be reported but if received from unregistered persons PAN is to be reported.
  • E-commerce operators are ineligible
  • Supplies to be reported net of debit/ credit notes. Negative fig. can also be uploaded
  • Value of supplies and tax amount to be reported in whole number or upto max. 2 decimal points

Form GST RET-3 (Sugam)

  • Option for taxpayers with aggregate t/o upto Rs.5 crores in preceding F.Y.
  • Supplies only to consumers and unregistered persons (B2C supplies) and B2B supplies
  • Supplies under RCM can be reported but where received from unregistered persons PAN is to be reported.
  • E-commerce operators are ineligible
  • Supplies to be reported net of debit/ credit notes. Negative fig. can also be uploaded
  • Value of supplies and tax amount to be reported in whole number or upto max. 2 decimal points

Points for focus:

  • Filing of Form GST RET-1 shall be deemed to be filing of Form GST ANX-1 and Form GST ANX-2
  • Change from Quarterly (Normal) to Sugam/ Sahaj or from Sugam to Sahaj is allowed only once in F.Y. in the beginning of any quarter
  • Change from Sahaj to Sugam/ Quarterly (Normal) or from Sugam to Quarterly (Normal) is allowed more than once in F.Y. at the beginning of any quarter

Author Bio

Qualification: CA in Practice
Company: Mohit Jajodia & Co.
Location: Bilaspur, Chhattisgarh, IN
Member Since: 11 May 2020 | Total Posts: 1
Email: camohitjajodia15@gmail.com View Full Profile

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