Now wait is over, finally gst council has come with a wonderful surprise of New gst return having SAHAJ and SUGAM. Earlier we heard that in the direct taxes for the ease of small taxpayers concept of SAHAJ and SUGAM came in the income tax return and it got huge popularity among the small taxpayers who don’t want to be part complexities and rigorous system of taxation.

It has been brought in to the public notice through press release dated 11th June 2019, that new GST return filing system will be rolled out from October 2019. The same has been already made available to all the taxpayers from July 2019 on trial basis.

GST return under existing system :

GSTR 1 : GSTR1 was introduced to report the outward supplies of the supplier.

GSTR 3B : This was the summary return which was introduced as substitute of GSTR3.

*Initially the proposal was to introduce the GSTR1 for outward supply, GSTR2 for inward supply and GSTR3 final return.

Proposed system of GST return :

  • ANX1
  • ANX2
  • RET 1/2/3

Flow of information :

ANX1: In this form taxpayer need to disclose the supplies listed below. The details uploaded will be made available in annexure GST ANX-2 to recipient on real time basis:

  • Outward Supplies,
  • Imports
  • Inward Supplies attracting RCM

ANX2: ANX2 is related to the inwards supplies and Input tax credit. In this return taxpayer is not required to upload any detail .one need to take one of the action listed below with respect to the invoices uploaded by the supplier:

  • Accept
  • Reject
  • Pending

* If no action is taken, then all documents will be treated as deemed accepted by recipient for the purpose of availing ITC

RET 1/2/3: Final return where tax need to be paid on final liability after setting off the ITC with the output liability of the GST. Taxpayer would assess the Liability, Make Payment & File Return.

Guidelines for the taxpayers who are going to implement the new system of GST returns:

Periodicity of filing return will be deemed to be monthly for all taxpayers unless quarterly filing of the return is opted for it implies that if you will not opt by your own for the quarterly filings of return.

Many times we feel like if we have taken fresh registration under the GST and its very start of business then how to opt this option. So in case of 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.

Taxpayers would be allowed to amend the periodicity. Change in periodicity of the return filing (from quarterly to monthly and vice versa) would be allowed only once at the time of filing the first return by a taxpayer. The periodicity of the return filing will remain unchanged during the next financial year unless changed before filing the first return of that year.

The taxpayers opting to file quarterly return can choose to file any of the quarterly return namely :

  • Sahaj,
  • Sugam or
  • Quarterly (Normal).

Taxpayers filing return as Quarterly (Normal) can switch over to Sugam or Sahaj return and taxpayers filing return as Sugam can switch over to Sahaj return only once in a financial year at the beginning of any quarter.

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 quarter.

Final return : RET 1/2/3  Monthly/Normal Quarterly (RET-1 )

Taxpayers opting to file monthly return or Quarterly (Normal) return shall be able to declare all types of outward supplies, inward supplies and take credit on missing invoices

  • Facility to file Nil return through SMS will also be available if no supplies have been made or received.
  • After uploading 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-1.
  • Information declared through FORM GST ANX-i and FORM GST ANX-2 shall be auto-populated in the main return (FORM GST RET – 1). The supplier can report excess tax collected from the recipients, if any, in the main return (FORM GST RET-1) under any other liability in Sr. No. 8 of table 3A.
  • 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.
  • Amount of TDS/TCS shall be credited in the 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.
  • 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.
  • 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 the Act read with the rules made Balance payment of tax can be made in cash.
  • Suggested utilisation of ITC will be made available in the payment table. However, 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.
  • Payment of tax on account of supplies attracting reverse charge, interest, fee, penalty and others shall be made in cash only. Adjustment of negative liability of the previous tax period shall be allowed to be made along with the current tax period’s liability.
  • Viewing of the balance amount available in electronic cash and electronic credit ledger will be made available before making payment.
  • Value of inward supplies attracting reverse charge and import of services mentioned in table 3B will not be added to the turnover. Only the tax amount will be added to the computation of tax liability.
  • 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.
  • 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.

SAHAJ (RET-2 ):

  • Allowed to declare outward supply under B2C category and inward supplies attracting RCM
  • Cannot make supplies through e-commerce operators on which tax is required to be collected under section 52.
  • 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

SUGAM (RET-3)

  • Allowed to declare outward supply under B2C and B2B category and inward supplies attracting RCM
  • Cannot make supplies through e-commerce operators on which tax is required to be collected under section 52.
  • 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

Trail Phase of new system of gst return

During the trial phase, GST ANX1 & GST ANX 2 only would be available to all the taxpayers.

  • From July, 2019, users would be able to upload invoices using the FORM GST ANX1 offline tool on trial basis for familiarization. Further, users would also be able to view and download, the inward supply of invoices using the FORM GST ANX-2 offline tool under the trial program.
  • This trial would have no impact at the back end on the tax liability or input tax credit of the taxpayer.
  • In this period, taxpayers shall continue to fulfill their compliances by filing FORM GSTR-i and FORM GSTR-3B .
  • Non-filing of these returns shall attract penal provisions under the GST Act.

Implementation Phase (Mandatory)

From October, 2019 onwards, FORM GST ANX-1 shall be made compulsory and FORM GSTR-1 would be replaced by FORM GST ANX-1.

  • The large taxpayers (i.e. those taxpayers whose aggregate annual turnover in the previous financial year was > Rs. 5 Cr) would upload their monthly FORM GST ANX­1 from October, 2019 onwards.
  • Small taxpayers (with aggregate annual turnover in the previous financial year up to Rs. 5 Cr) shall file first compulsory quarterly FORM GST ANX-1 in January, 2020 for the quarter October to December, 2019.
  • invoices can be uploaded in FORM GST ANX-1 on a continuous basis both by large and small taxpayers from October, 2019 onwards.
  • FORM GST ANX2 may be viewed simultaneously during this period but no action shall be allowed on such FORM GST ANX-2

What about the Exiting returns? 

Large tax payers:

  • For October and November, 2019, continue to file FORM GSTR-3B on monthly basis.
  • First FORM GST RET-o1 for the month of December, 2019 by 1oth January, 2020.

Small taxpayers:

From October, 2019 onwards :

  • Stop filing FORM GSTR-3B
  • Start filing FORM GST PMT-o8
  • First FORM GST-RET-o1 for the quarter October, 2019 to December, 2019 from 2oth January, 2020.

*From January, 2020 onwards, all taxpayers shall be filing FORM GST RET-o1 and FORM GSTR-3B shall be completely phased out.

Author Bio

Qualification: CA in Practice
Company: GST World
Location: Delhi, New Delhi, IN
Member Since: 11 Jun 2017 | Total Posts: 2
Anuruddh is having rich experience in the field of indirect taxes specially in GST. He has worked with one of the leading Big4 EY. Anuruddh has addressed various seminars on issues related to GST and also been an advisor and trainer to many corporates. View Full Profile

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