Key Features of proposed Simplified GST Return Forms and Process

• Turnover above Rs. 5 Crs

• Turnover upto Rs. 5 Crs

• Having no purchases, no output tax liability and no ITC
• Facility to file through SMS

• Invoices to be uploaded during any month.
• Only uploaded invoice would be valid document for availing ITC.
• Uploaded invoices shall be auto populated in the liability table of the main return of the supplier.

• Invoices uploaded by the supplier are visible to the recipient as “Viewing Facility”.
• After the due date for filing of return is over, the recipient shall also be able to see the return filing status of the supplier.
• Also show the trade name of the supplier

• Invoices uploaded by the supplier by 10^th of the next month shall be available for ITC in the return filed by the recipient.
• Invoices uploaded after 10^th of the next month by the supplier shall be available for ITC in the subsequent month return of the recipient.

• In transition period of six months after new system of return is implemented, the recipient would be able to avail ITC on self-declaration basis even on the invoices not uploaded by the supplier by 10^th of the next month or thereafter using the facility of availing input tax credit on missing invoices

• If no return filed after uploading, it shall be treated as self-admitted liability by the supplier and recovery proceedings shall be initiated.

• Only invoices or debit notes uploaded by the supplier shall be valid document for availing ITC by the recipient.

• Invoices or debit notes which have not been uploaded by the supplier and on which recipient has availed ITC are called “Missing Invoices”.
• Same shall be uploaded within prescribed time period
• In case of failure the same shall be recovered from the recipient

(Two tax periods)

• Shall be reported by the supplier in the main return for any tax period with interest or penalty as applicable.
• Uploading of missing invoices can be delayed upto to tax periods.

• An IT tool for matching of the invoices downloaded in XL Format from the viewing facility, with the invoices stores in the accounting software by the taxpayer shall be provided.
• The same shall have ability to filter invoices on the basis of –

i. Date of invoice – to and from date

ii. Date on which invoice was uploaded by the supplier on the Common portal

iii. GSTIN of the supplier

• Liability declared in the return shall be discharged in full at the time of filing of the return by the supplier

• There shall not be any automatic reversal of ITC
• In case of default by supplier, recovery shall be made from the supplier.
• In some exceptional cases like missing taxpayer, closure of business by the suppler etc., recovery of ITC from recipient shall be made through a due process

• Where GSTIN of the recipient is wrongly filed by the supplier, the invoice would appear on the viewing facility of a taxpayer who is not the recipient of such supplies and therefore, reject those invoices.
• Facility will be provided in IT tool

• Which have been uploaded by the supplier but pending by the Recipient for the reasons –

i. The supply has not been received

ii. Invoice needs amendment

iii. Not able to decide whether to take ITC for the time being.

• ITC can be availed against uploaded invoices (upto the due date 10^th of the next month) if good or services have been received. (this is for goods received after 1^st of next month but before 20^th of next month)

• Pending invoice can be rejected by the recipient at a later date, when he is able to decide on either of the above three situations

• Uploaded invoices have not been rejected or have not been kept pending by the recipient shall be deemed to be locked after return for the relevant tax period has been filed by the recipient.
• Locked invoices will not be allowed to be amended by the supplier.
• In order to amend a credit or debit note will have to be issued by the supplier.

• A wrongly locked invoice shall be unlocked online by the recipient himself subject to reversal of the input tax credit by him and online confirmation thereof

• Amendment of an invoice may carried out by the supplier where ITC has not been availed and not reported as locked by the recipient.
• Once an invoice is locked, credit note or debit note can still issued by the supplier to change value, rate of tax, quantity or the tax payable.

• The table for reporting supplies with the tax liability at various tax rates shall not capture HSN but would continue to capture supplies at different tax rates as is the present practice.
• The details of HSN shall be captured at four digit or more in a separate table in the regular monthly return.

• Main return shall have two main tables

i. Reporting supplies on which tax liability arises

ii. One for availing ITC.

• Return shall have annexure of invoices which shall auto-populate the output liability table in the main return.

• Liability in the return arising out of invoices of different dates shall be summarized period wise.
• One payment for the total tax liability on all tax invoices shall be allowed to be made
• Interest shall be calculated on invoices reported late

• To address the problem of human error
• There would be a facility to file two amendment returns for each tax periods within the time period in Section 39(9) of the CGST Act, 2017.
• Amendment of entries which flow from annexure of the main return shall be allowed only with the amendment of the details filed in the Annexure

• Amendment of missing invoices reported later by the supplier shall be carried out through the amendment return of the relevant tax period to which the invoice pertains.
• Therefore trade is advised to report all the missing invoices before exhausting their opportunity to amend the return

• All user entries of input tax credit table in the main return would be allowed to be amended.
• Change in the closing balance of the input tax credit shall be affected based on the declaration in the amendment return of the taxpayer.
• Thus, the opening and closing balances of intervening month(s) shall not get impacted.

• Payment would be allowed to be made through the amendment return as it will help save interest liability for the taxpayer.
• ITC, if available in the electronic credit ledger can also be used for payment of the liability in the amendment return.

• Negative liability arising from the amendment return shall be carried forward as negative liability in the regular return of the next tax period.

• For change in liability of more than 10% through an amendment return, a higher late fee may be prescribed to ensure that reporting is appropriate in the regular return.

• All reported liabilities for a month in regular return for a tax period

i. liabilities from missing invoices

ii. uploaded/reported later and

iii. liability flowing from the amendment return shall be shown to the taxpayer and the tax officer at one screen on the common portal to assist tax period wise accounting and assessment.

• The table shall contain details of shipping bill also.
• Can either fill this information at the time of filing the return or after filing the return at his option
• Filing the details of the Shipping bill in the return at a later date shall not be considered as filing of an amendment return

• Once the information of S/B is completed, the entire data shall be transmitted to the ICEGATE

•  Till data starts flowing online from ICEGATE or SEZ online in the input tax credit of the return, credit on imports and supplies from SEZ shall be availed on self-declaration basis

•  For a newly registered taxpayer and a taxpayer who has defaulted in payment of tax beyond a time period and/or above a threshold, uploading of invoices shall be allowed only upto a threshold amount or only after the default in payment of tax is made good respectively.
• This would lead to the recipient getting protected against the actions of the supplier and also the interest of public money (revenue) adequately protected
• Where the condition for supplier’s side control are not satisfied due to default in payment of tax by the supplier, the invoice of such supplier shall not be populated in the viewing facility and the recipient would not be able to avail the ITC on such invoices.

• There are many kinds of supplies which can be made under GST and also there are many types of inputs using which input tax credit can be availed.
• Most of the taxpayers have only a few types of supplies to make and few types of inputs to report.
•  Therefore, a questionnaire shall be used to profile the taxpayer and only such part of return shall be shown to him which are relevant to his profile.

• Invoices/ Supplies on which the recipient does not intend to take ITC (such as ineligible ITC supplies) but are kept pending or rejected will have to be reported separately in the Annual return.

• Concept of suspension of registration would be introduced when a registered person has applied for cancellation of registration or when the conditions in law for cancellation of registration are satisfied.
• From the date of suspension to the date of cancellation of registration, return would not be required to be filed