To improve and simply, GST Council approved concept of new simplified format of GST returns in its 28th GST Council meeting held on 21st JULY, 2018.Revised Formats are proposed to implement with effect from 1st April,2019 on trial basis and if it operates well then such formats will become mandatory with effect from 1st July,2019, as decided in 31st GST Council meeting. However, due to lack of technical support only GSTR-1, GSTR-3B (Summary return) are continue till March,2020..
The GST Council officially unveiled three new GST returns forms names GST RET-1”NORMAL Form”, GST RET-2” SAHAJ Form” and GST RT-03 “SUGAM” Form . The new GST returns forms will be introduce on trial basis from Nov,2019 to March,2020 along with existing returns i.e. GSTR-1,GSTR-2 AND GSTR-3B etc., Now, we see how New GST Returns Scheme Normal, Sahaj and Sugam Forms are prepare and upload in the GSTN Site.
Return Formats (Sahaj Return–FORM GST RET-2) (Quarterly) (including amendment)
|1.||Profile Option||Intimation of option for return periodicity and type of quarterly return|
|2.||Form GST Anx-1||Annexure of outward supplies and inward supplies attracting RCM.|
|3.||Form GST ANX-2||Annexure of inward supplies|
|4.||Form GST RET-2||Quarterly Return|
|5.||Form GST ANX-1A||Amendment to FORM ANX-1|
|6.||Form GST RET-2A||Amendment to FORM RET-2|
|7.||Form GST PMT-08||Payment of self-assessed Tax.|
1. Periodicity of filling return will be deemed to be monthly for all taxpayers unless quarterly filling of the return is opted for.
2. For newly registered taxpayers turnover will be considered as zero and hence they will have the option to file monthly, Sahaj, Sugam or Quarterly (Normal) return.
3. Change in periodicity of the return filling (from quarterly to monthly and vis versa ) would be allowed only once at the time of filing the first return by a taxpayer.
4. The periodicity of the return filling will remain unchanged during the next financial year unless changed before filing the first return of that year.
5. The taxpayers opting to file quarterly return can choose to file any of the quarterly return namely Sahaj, Sugam or Quarterly (Normal).
6. Taxpayers filing return Sugam can switch over to Sugam or Sahaj return and taxpayers filing return as Sugam can choose to file any of the quarterly return namely Sahaj, Sugam or Quarter (Normal).
7. Taxpayers filing return as Sahaj can switch over to Sugam or Quarterly (Normal ) return and taxpayers filing return as Sugam can switch over to Quarterly (Normal) return more than once in a financial year at the beginning of any year.
8. Taxpayers opting to file quarterly return as “Sahaj” shall be allowed to declare outward supply under B2C category and inward supplies attracting RCM only. Such taxpayers cannot make supplies through e-commerce operators on which tax is required to be collected under section 52 . Such taxpayers shall not take credit on missing invoices and shall not be allowed to make any other type of inward or outward supplies. However, such taxpayers may make Nil rated, exempted or Non-GST supplies which need not be declared in the said return.
9. Taxpayers opting to file quarterly return “ Sugam” shall be allowed to declare outward supply under B2C and B2B category and inward supplies attracting RCM only. Such taxpayers cannot make supplies through e-commerce operators on which tax is required to be collected under Section 52. Such tax payers shall not take credit on missing invoices and shall not be allowed to make any other type of inward or outward supplies. However, such taxpayers may make Nil rated, exempted or Non-GST supplies which need not be declared in said return.
10. Taxpayers opting to file monthly return or Quarterly (Normal) shall be able to declare all types of outward supplies, inward supplies and take credit on missing invoices.
A. General Instructions:-
1. Terms used-
(a) GSTIN : Goods and Services Tax Identification Number
(b) UIN : Unique Identification Number
(c) HSN Code : Harmonized System of Nomenclature Code
(d) POS : Place of Supply (Respective State /UT)
(e) B2B : Supplies made to registered persons having GSIN or UIN
(f) B2C : Supplies made to consumers and un-registered persons, not having GSTIN or UIN
(g) Type of Document: Invoice (including revised invoices), debit/credit note. Bill of supply, bill of entry etc.
(h) ARN : Acknowledgment Reference Number
2. Registered person can upload the details of documents any time during a quarter to which it pertains r of any prior period but not later than the due date for furnishing of return for the month of September or second quarter following the end of financial year to which such details pertains or the actual date of furnishing of relevant annual return whichever is earlier except that he will not be able to upload details of the documents from 23rd to 25th of the month following the quarter.
3. Advances received on account of supply of services shall not be reported here. The same shall
be reported in Table 3C(1) and 3C(2) of FORM GST RET-2
4. Supplies attracting RCM will be reported only by the recipient and not by the supplier in this annexure. Such supplies shall be reported GSTIN wise and amount of tax and taxable value will be net f debit/credit notes and advance paid (on which tax has already been paid at the time of payment of advance), if any.
5. Taxpayers shall have the optional facility to report HSN code I the relevant table or leave it blank.
6. Tax amount shall be computed by the system based on the taxable value and tax rate. The tax amount so computed will not be editable except by way of debit/credit notes, However, the tax amount under cess will be reported by the taxpayer himself.
7. Place of supply shall have to be reported mandatorily for all supplies. For intra-State supplies, the Place of Supply will be the same State in which the supplier is registered.
8. Tax rate applicable on IGST supplies can be selected from the drop down menu. For intra-State supplies, the tax rate shall be applied at half rate of IGST equally for CGST and SGST/UTGST. Cess, if applicable , shall be reported under the cess column.
9. Value of supplies and amount of tax shall be reported in whole number or up to two decimal point at the most.
10. GSTIN of the supplier shall be reported (wherever available) in table 3H from whom the supplies have been received. PAN may be reported in Table3H if supplies attracting RCM are received from un- registered.
11. Where supplies are reported as net of debit /credit notes , the values may become negative in some cases and the same may be reported as such i.e.(-100).
12. Details of documents of the period prior to introduction of the current return filling system can also be uploaded in the relevant tables of this Annxure. Only those details shall be uploaded which have not been included in the erstwhile FORM GSTR-1. All supplies that are declared in this annexure will be accounted for payment of tax. In case the relevant table existed in GSTR-1 but is not available in this form then liability shall be paid through table 3A(2) or 3C(3) of GST RET-2 as the case may be.
B. Table specific instructions
|Sr. No.||Table No.||Instructions|
Instructions for filling of (FORM GST ANX-2)
1. Details f documents uploded by the corespondeing supplies (s) (irrespective of the fact whether the supplier files his return on monthly or quarterly (Normal, Sahaj or Sugam basis) will be auto-populated in this annexure on near real time basis and can be acceptd o reset/unlocked by the recipient upto the 10th of the mnth following the month in which usch documents have been uploaded. After the procedure as outlined in Sr.No.2 below will be applicable.
2. Recipient can take action on the auto-populated documents to Accept Reject or to keep pending on continious basis after 10th of the month following the month in which such invoices have been uploaded. However , in case of quarterly return filers communication of such rejected documents and any further action on such rejectedd documents shall be done only in the return for the next quarter.
3. Accepted documents will men that supplies reported in such document have been received before diling of return by the recipient an dthe details given in the documents reported in FORM GST AN-1 arecorrect.
4. Accepted documents would not be available for amendment at the corresponding supplier’s end. However, a separate facility to handle such cases will be provided.
5. For the purpose of the return process, any invoice with an error that cannot be corrected through a financial debit/credit note shall be rejectd. For example:-
(i) The recipient does not agree with some of the details such as HSN Code , tac rate, value etc. These are certain errors which cannot be corrected through debit/credit notes.
(ii) GSTIN of the recipient is erroeous and therefore it is visible in the FORM GST ANX-2 of a registered person who is not concerned with the supply. These are certain errors which cannnot be corrected through debit/credit notes.
6. Supplier can make corrections in the rejected documents through FORM GST ANX-1 as rejected documents would be shown to the supplier.
7. Pending action will mean that the recipient has deferred the decision of accepting or rejecting the details of the invoices. There may be multiple reasons for the same such as supplies are yet to be received or the recipient is not able to decide whether ITC is not to be taken for the time being,etc.
8. The input tax credit in respect f pending invoices shall not be accounted for in table 4A of the main return (FORM GST RET-2) of the recipient and such invoices would be rolled over t FORM GST ANX-2 of the next tax period.
9. Pending invoices will not be available for amendment by the supplier until rejected by the recipient.
10. Any documment, on which an affirmative action of either accepting the document or keeping the document pending or rejecting the document is not taken by the recipient in his FORM GST ANX-2, shall be deemed to be accepted upon filing of return by him. Input tax credit on such deemed accepted documents shall be reflected/ shown in table 4A of the main return ( FORM GST RET-2).
11. Status of return filing (not filled, filed) by the supplier will also be made known to the recipient would be able to check the return filing status of the suppliers. Thiis status however,does not affect the eligibility or otherwise of input tax credit which will be decided as per the Act read with the Rules made thereunder.
12. Trade name of the supplier will also be shown along with GSTIN. Legal namme will be shown where trade name is not available.
13. Separate functionality would be provided to search and reject an accepted document on which credit has already been availed. Input tax credit availed on such document shall be shown for reversal in table 4B(1) of FORM GST RET-2 which may be adjusted in table 4A(6) of FORM GST RET-2 to arive at the amount of input tax credit availed. However, such reversal of credit for the recipient will be with interest as per the provisions of the Act read with the rules made thereunder.
14. FORM GST ANX-2 will be treted as deemed flled after filing of main return 9FORM GST RET-2) relating to the quarter.
15. The documents uploaded in FORM GST ANX-1 for the month “M” by a supplier who did not file his return for the previous two consecutive tax periods(M-1 and M-2 months) shall be made available on such document. In other words, such documents will be visible to the recipient but the recipient cannot claim ITC on such inward supplies. However, the recipient can reject or keep such documents pending untill filing of return by the supplier. For supplies filing return o quarterly basis, this period will be one quarter i.e. if return of one quarter has not been filed, then recipient will not be able to claim credit on the invoices upoaded during next quarter.
Option to file ‘NIL’ return:-
Instructions (FORM GST RET-2)
A. General instructions –
1. Facility to file Nil return through SMS will also be available if no supplies have been made or received.
2. After uploading the details of supplies in FORM GST ANX-1 and taking action on the documents auto-populated in FORM GST ANX-2, the taxpayer shall file the main return in FORM GST RET-2.
3. Information declared through FORM GST ANX-1 and FORM GST-ANX-2 shall be auto-populated in the main return (FORM GST RET-2).
4. The supplier can report excess tax collected from the recipients, if any, in the main return (FORM GST RET-2) under any other liability in S No. 2 of table 3A.
5. Rejection of the details of documents wrongly uploaded by suppliers, pendency of supplies not received but available in the auto-populated details of documents, reversals, adjustments etc. shall be auto-populated in table 4.
6. Amount of TDS/TCS shall be credited in electronic cash ledger which will be based on returns filed in FORM GSTR-7 and FORM GSTR-8 by deductors under section 51 and persons required to collect tax under section 52 respectively. However, since the taxpayers filing Sahaj return are not allowed to supply through E-Commerce operators on which tax is required to be collected under Section 52 this table is to be used only for transition from the old return system to the new return system or switching during current return system
7. Interest and late fee to the extent of late filing of return, making late payment of taxes, uploading preceding tax periods’ invoices shall be computed by the system. Other interest due to reversals etc. shall be entered by the taxpayer on self-assessment basis.
8. Payment of tax can be made by utilizing ITC under the same head or cross-utilizing from other heads in accordance with the provisions of Act read with the rules made thereunder. Balance payment of tax can be made in cash.
9. Payment of tax on account of supplies attracting reverse charge, interest, late fee, penalty and others shall be made in cash only.
10. Suggested utilisation of ITC will be made available in the payment table. However, the taxpayer can make changes in the suggested ITC utilization as long as such changes are as per provisions of the Act read with the rules made there under.
11. Adjustment of negative liability of the previous tax period shall be allowed to be made along with the current tax period’s liability.
12. Viewing of the balance amount available in electronic cash and electronic credit ledger will be made available before making payment.
13. Value of inward supplies attracting reverse charge mentioned in table 3B will not be added to the turnover. Only the tax amount will be added to the computation of tax liability.
14. Facility of creating a challan for making payment will be made available if the balance in the electronic cash ledger is insufficient to discharge the liabilities.
15. Adjustment to liabilities or input tax credit relating to the period prior to the introduction of current system of return filing shall be reported in table 3 (tax liabilities) or table 4 (input tax credit), as the case may be.
B. Table specific instructions:-
|Table No.||Part of the Table||Instructions|
|3.||Summary of outward supplies, inward supplies attracting reverse charge and tax liability.|
|A. Details of outward supplies|
|1.||Taxable supplies made to consumers and un-registered persons will be net of debit/credit notes.|
|2.||Liabilities relating to the period prior to the introduction of current return filing system and any other liability (including excess tax collected from the recipient, if any) to be paid shall be reported here by the taxpayer.|
|B. Details of inward supplies attracting reverse charge.|
|1.||Inward supplies attracting Reverse Charge will e auto-populated from table 3H of which tax has already been paid at the time of payment, if any.|
|C. Details of advances received /adjusted and other reduction in liabilities:|
|1.||Advances received on account of supply of services during the period will be reported by the taxpayer after giving effect to refund voucher. The same may be used to adjust any advances reported wrongly earlier.|
|2.||Adjustment made out of advances reported earlier will be reported by the taxpayer. Excess adjustment, if any , made shall be accounted for in the next tax period’s return.|
|3.||Reduction in output tax liability on account of transaction from composition levy to normal levy or any other reduction in liability shall be reported here by the taxpayer.|
|D. Total Value and tax liability.|
|1.||Sum of part A,B, and C will be the total value of supplies and that of liability and will be auto-populated.|
|Summary of inward supplies for claiming input tax credit (ITC)|
|A. Details of ITC based on auto-population from FORM ANX-1 and action taken in FORM GST ANX-2 and other claims|
|1.||Amount of credit involved in the rejected documents in FORM GST ANX-2 before filing return will be auto-populated here and will be net of debit/credit notes.|
|2.||Amount of credit involved in the documents which have been kept pending in FORM GST ANX-2 will be auto-populated here and will be net of debit /credit notes.|
|3.||Amount of credit on all documents accepted (including deemed accepted) in FORM GST ANX-2 will be auto-populated here and will be net of debit / credit notes.|
|4.||If any eligible credit has not been claimed in FORM GSTR-3B due to non-receipt of supplies etc., the same can be claimed here.|
|5.||Credit on inward supplies attracting reverse charge as reported in table 3H of FORM GST ANX-1 will be auto-populated here and will be net of debit / credit notes and advances on which tax has already been paid at the time of payment, if any|
|6.||i) There may be situations where a credit note was issued by the supplier against an invoice but the recipient had taken nil or partial credit on such invoice. Since acceptance of credit note will lead to reversal of credit, there may be instances where there will be a double reversal of credit for the recipient. In order to address the same, a facility has been provided for recipients to self-adjust any such loss of credit arising from issuance of credit notes by the supplier. Illustrations:
a) A supplier issues an invoice for Rs. 1000/- to the recipient in the month of May. The recipient accepts the invoice in his FORM GST ANX-2 and the credit involved in the said invoice gets auto-populated in his FORM GST RET-1. In the month of June, the supplier gives a credit note to the recipient who accepts the same in his FORM GST ANX-2. Upon acceptance of the said credit note, the credit involved therein is reversed and this gets reflected in FORM GST RET-1. No adjustment needs to be made in such a case.
b) A supplier issues an invoice for Rs. 1000/- to the recipient in the month of May. The recipient accepts the invoice in his FORM GST ANX-2 but takes 50% credit on the said invoice in his FORM GST RET-1. In the month of June, the supplier gives a credit note to the recipient who accepts the same in his FORM GST ANX-2. Upon acceptance of the said credit note, the credit involved therein is reversed and this gets reflected in FORM GST RET-1. In such a case, the recipient may make an upward adjustment of 50% credit in this row as he had initially taken only 50% credit on the original invoice.
c) A supplier issues an invoice for Rs. 1000/- to the recipient in the month of May. The recipient accepts the invoice in his FORM GST ANX-2 but takes no credit on the said invoice in his FORM GST RET-1. In the month of June, the supplier gives a credit note to the recipient who accepts the same in his FORM GST ANX-2. Upon acceptance of the said credit note, the credit involved therein is reversed and this gets reflected in FORM GST RET-1. In such a case, the recipient may make an upward adjustment of 100% credit in this row as initially he had not taken any credit on the original invoice.
ii) Any other reclaim of ITC can also be reported here.
|B. Details of reversal of credit.|
|1.||If a document is rejected by the recipient after accepting and filing return of any quarter , then the value and amount of ITC will be auto-populated here, in the return filed immediately after such rejection. Credit availed on such document will be reversed . The amount will be net of debit/credit notes.|
|2.||Out of the credit available in table 4A, the recipient shall report the amount of ineligible credit.|
|3.||Reversal of input tax credit under Rule 37,39,42 & 43 shall be reported here, if applicable.|
|4.||Any other reversal including downward adjustment of ITC on account of transaction from composite levy to normal levy not covered by Sr.No.1 to 3 shall be reported here.|
|C. Input Tax Credit available after reversal.|
|1.||Difference of credit available in table 4A and reversal of credit reported in table 4B will be the amount of credit available during the tax period.|
|D. ITC declared during first two months of eh quarter.|
|1.||ITC declared during first two months of he quarter shall be auto-populated from FORM GST PMT-08 at Sr. No. 1 & 2 for first month and second month respectively.|
|E. Net ITC available.|
|1.||Difference of credit reported in table 4C and table 4D will be the net ITC available during the tax period and will be posted to the electronic credit ledger for utilization.|
Instructions to (FORM GST ANX-1A)
1. The amendment will be based on the tax period and for details reported therein earlier.
2. Amendment to FORM GST ANX-1 can be filed before the due date for furnishing of return for the month of September following the end of the financial year or the actual date of furnishing relevant annual return, whichever is earlier. The amendment to FORM GST ANX-1 can be filed as many times for a tax period as provided in the Act read with the rules made there under.
3. Filing process is similar to the process of filing of the original FORM GST ANX-1. The annexure will be deemed to have been filed upon filing of return FORM GST RET – 2A.
Instructions (FORM GST RET-2A)
1. Filing process of amendment return will be similar to the filing process of originl return (FORM GST RET-2).
2. Entries made by the taxpayer in the fileds at the time of filling the main return (FORM GST RET-2) which were not auto-populated shall be editable in this return.
3. Amendment return can be filed for a tax period i.e. for a quarter.
4. Frequency of filing and period within which t is to be filed will be as per provisions of the Act read with the rules made there under.
5. Payment can be made if liability arise due to filing of amendment return. If liability becomes regative then no refund shall be paid. However, the negative liability will be carried forward to the main return ( FORM GST RET-2) of the next tax period where adjusment can be made.
6. Payment process will be similar to the main return ( FORM GST RET-2). ITC available in the electronic credit ledger can be utilized for payment of liability as per provisions of Act read with the rules made there under.
7. Revised values shall be reported wherever amendment is required in the returns aledy filed. For example, if the original value reported was Rs.100/- and revised value is Rs.120/-, then Rs.120/- shall be reported in these tables.
8. Amendment to ITC (Upward/downward adjustment) shall be reported in the main return ( FORM GST RET-2) and not to be taken to this amendment retrn.
Instructions (FORM GST PMT-08)
1. Taxpyers opting to file the return on quarterly basis have to make payment on monthly basis on the supplies made during the month.
2. Only eligible ITC shall be claimed through this FORM.
3. Payment of elf-assessed liabilites shall be made for the first two months of the quarter.
4. Credit of the tax paid during the frst two months of the quarter shall be available at the time of filing the return for the quarer.
5. Payment of the self-assssed liabilites shall be made by 20th of the month succeeding the month to which the liability pertains.
6. Liability can be settled out of balance in electronic credit ledger or electronic cash ledger as the case may be.
7. Liability and input tax credit availed shall be based on self-assessment subject to adjustment in the min return of the quarter.
8. Excess input tax credit claimed or short libility stated will be liabile for levy of interest under section 50 of the Act.
9. The declaration shall also be required to be filed if no supplies have been made during the month.
10.Late payment will attract interest at the rate specified in section 50 of the Act.