All about the New GST Returns

The very essence of Goods and Service tax regime is to ensure that input utilized is actually paid to the government for which invoice matching was done through GSTR 2A, but however this was failed because tax payers started taking credit on provisional basis in GSTR 3B, thus making it difficult to determine whether tax which is utilized is been actually paid to the government, thus shaking the very purpose of GST regime.To fight with this lacuna new returns are proposed in which there will be matching of purchases and credits through invoice matching, moreover in the new returns scheme the returns are categorized into normal return, “sahaj” and “sugam” based on nature of supply and disclosure requirements.

Are new GST returns applicable for all return filers?

The forms which are phased out are only GSTR 1 and 3B other forms continue to remain, thus the following forms will need to filed.

Type of Registered person Form
Composite scheme GSTR 4
Non-Resident Taxable Person GSTR 5
Input Service Distributor GSTR 6
Person deducting tax (TDS) GSTR 7
Person collecting Tax (TCS) GSTR 8
Casual Taxable person GSTR 11

Thus, new forms replace only GTSR 1 and 3B, other will still continue to remain.

What are all the New Returns?

Form Type Details Filing criteria
FORM GST ANX – 1 Details of supplies for which tax is payable/paid Statements to be filed for submission of the return
FORM GST ANX – 2 Details of inward supplies which are auto populated from suppliers Form GST ANX – 1 Statements to be filed for submission of the return
FORM GST RET-01 (Monthly) Detailed disclosure – Import/Export/SEZs To be filed if aggregate turnover during the

preceding financial year exceeds 5 crores
FORM GST RET-01 (Quarterly) Detailed disclosure – Import/Export/SEZs To be filed if aggregate turnover during the preceding financial year is upto 5 crores
FORM GST RET-02 (Quarterly) – Sahaj B2C, Nil-rated, exempted, Non-GST, RCM To be filed if aggregate turnover during the preceding financial year is upto 5 crores
FORM GST RET-03 (Quarterly) – Sugam B2C, B2B Nil-rated, exempted, Non-GST, RCM To be filed if aggregate turnover during the preceding financial year is upto 5 crores

Therefore we can conclude that for the person whose aggregate turnover in the previous FY exceeds 5 crores should compulsorily file GST-RET-01(Monthly) and whose aggregate turnover does not exceed 5 crore have option between GST-RET-01(Quarterly), GST-RET-02(Sahaj – Quarterly) and GST-RET-03(Sugam -Quarterly) depending on the nature of supply.

However, payment of taxes is monthly in the FORM – PMT-08 despite quarterly filing of returns.

What is the Sequence of filing of returns?

STEP 1 – Upload details in GST-ANX-01 (Outward and inward supplies on which there is tax liability)

STEP 2 – Take action on auto-populated inward supplies shown in GST-ANX-2 (Accept, reject, pending)

STEP 3 – Proceed with filing of return -GST RET – 01/02/03 – most of the data is auto-populated from GST ANX-01 and 02

STEP 4 – In case of amendments to be made in data of earlier tax periods the same can be done through GST RET 1A/2A/3A

Shifting of returns

Is there any facility available for shifting the return type? If Yes, how frequently can the return be shifted?

For e.g. – if a person has opted to file GST-RET-01(Quarterly) then he can shift his return type to GST-RET-02 and GST-RET-03 depending on his eligibility, this can be done once in each financial year.

However, if a person earlier filed GST-RET-03 then he can shift to GST-RET-02 and GST-RET-01 in the beginning of each quarter.

Thus, shift will be allowed only once for shifting from return which has more disclosure to less disclosure and shift can be done in the beginning of each quarter if shift is from less disclosure to more disclosure.

However, the option to choose Monthly or Quarterly return filing of GST-RET-01 is only available to persons having aggregate turnover less than 5 crores, and such option to be exercised in the beginning of each FY.

Prototype of New Return Scheme

A prototype of the offline tool has been shared on the GST Portal to give the users a feel of the same.

Highlights of GST 37th Council Meeting

Various decisions were taken in the meeting, the key highlights being

GSTR 9 (Annual return for regular tax payers) for Small taxpayers (Annual turnover upto 2 crores) not compulsory for FY 17-18 and 18-19

Waiver of GSTR 9A (Annual Returns for composite tax payers) for FY 17-18 and 18-19

New returns deferred to April 2020

If you require any assistance regarding Filing of GST Returns please reach our experts at +91-7008804070