Transition Plan to New GST Returns for Small & Large Taxpayers

The GST Council in its 31st meeting had decided to implement a new returns system in order to make the return compliance more easier.

There are three components in the new returns system:

1.GST ANX-1

a). In GST ANX-1, the details of outward supplies and inward supplies on which tax is payable on the reverse charge basis need to be disclosed.

2. GST ANX-2

a) In GST ANX-2, the details of all inward supplies need to be disclosed.

3. GST RET-01

a)GST RET-01, it is a final return form through which the tax liability has to be discharged.

Transition phase:

1) From July to September,

a) All assesses would be able to upload their outward supply invoices in the GST ANX-01 offline tool on a trial basis in order to get a familiarisation.

b) The summary of inward supplies would be also available for view in the offline tool.

c) From August onwards, the assessee would be able to import the purchase register from the offline tool and match it with the summary of inward supplies in order to find mismatches.

d) This trail would have no impact at the backend on the tax liability or Input tax credit of a taxpayer.

e) During this Trail period, all assessee shall continue to file the GSTR-1 and GSTR-3B returns. Non-compliance of the same would attract the penal provisions under the GST act.

2. From October onwards,

a) The Form GST ANX-01 shall be made mandatory fo file. The GSTR-1 would be replaced by the Form GSTR ANX-01.

b) The large taxpayers(i.e; whose aggregate turnover in the previous financial year is above 5 crores) would file their first GST ANX-01 from October onwards.

c) The small taxpayers(i.e; whose aggregate turnover in the previous financial year is less than 5 crores) would file their first quarterly(October to December)  GST ANX-01 in January 2020.

d) The small taxpayers would file GST PMT-01 on a monthly basis from October onwards.

e) For October and November month, the large taxpayers would file their GSTR-3B  as usual.

f) From December month, GSTR-3B would be replaced by GST RET-01.

g) Both large taxpayers and small taxpayers would file their first GST RET-01 in January 2020 for the month of December.

h) In January 2020, both GSTR-1 and GSTR-3B would be completely phased out.