PPT on New GST Return System
- 1. OVERVIEW NEW (PROPOSED) GST RETURNS
- 2. Content : - Current vs New (Proposed ) GST Return System Overview of New GST returns. Features Form GST ANX-1 Features Form GST ANX-2 Featured of Normal (RET-1), Sahaj (RET-2) & Sugam (RET-3) Return Advantages & Limitations of New Return System
- 3. Current GST Return System GSTR-1 (on or before 11th of following Month) GSTR-2A GSTR-2 GSTR-3 / 3B (on or before 20th of following Month) New (Proposed ) GST Return System ANX-1 (on or before 10th of following Month) ANX-2A (to be made available up to 10th of following month) ANX-2 (Due date to be notified) GST RET-1/2/3 (Due date to be notified) Current vs New (Proposed ) GST Return System GSTR-3B notified as return u/s 39 & rule-61 in place of GSTR-3 GSTR-2 Suspended
- 4. Overview: - (The GST Council in its 31st meeting recommends introduction of New GST Return System which is not Proposed to be implemented w.e.f. 01.10.2020) New GST Return Taxpayer having aggregate Annual TO < INR 5 Crore Normal Return (Form RET-1) Sahaj Return (Form RET-2) Sugam Return (Form RET-3) Taxpayer having aggregate Annual TO > INR 5 Crore Normal Return (Form RET-1) Q U A R T E R L y Monthly Mandatory (Data Dependency)
- 5. Features of New GST Return Normal Return • Aggregate Turnover < INR 5 Crore may choose to file the return quarterly. • Aggregate Turnover > INR 5 Crore will have to file the return monthly. • Taxpayer allowed to declare all types of outward supplies, inward supplies and take credit of missing invoices. Sahaj Return • It is quarterly return and applicable for such taxpayer whose Aggregate Turnover < INR 5 Crore. • Taxpayer opting to file Sahaj return will be allowed to declare outward supply under B2C, Inward supply attracting RC and Nil rated. Exempted or Non-GST supplies. • Such taxpayer cannot make supplies through e-commerce operator on which tax is required to be collected u/s 52. • Taxpayer will not be allowed to take credit of missing invoices. Sugam Return • It is also quarterly return and applicable for such taxpayer whose Aggregate Turnover < INR 5 Crore. • Taxpayer opting to file Sahaj return will be allowed to declare outward supply under B2B, B2C, Inward supply attracting RC and Nil rated. Exempted or Non-GST supplies. • Taxpayer will not be allowed to take credit of missing invoices. Switch over of Return • Taxpayer filing Normal (Quarterly) Return can switch over to Sugam or Sahaj and taxpayer filing Sugam can switch over to Sahaj return only once in a FY at the beginning of any quarter. • • Taxpayer filing Sahaj can switch over to Sugam or Normal (Quarterly) and taxpayer filing Sugam can switch over to Normal (Quarterly) return more than once in a FY at the beginning of any quarter.
- 6. Features of Form GST ANX-1 (Details of Outward supplies, imports and inward supplies attracting Reverse Charge) ANX-1 This will be substitute of GSTR-1 and filed on or before 10th of succeeding month. Details of documents can be uploaded any (real time basis) time during a month/qtr to which it pertains with exception of 18th – 20th for monthly filer and 23rd to 25th for quarterly filers. Advances received on account of supply of services shall be reported in Table 3C(3) and adjustment thereof shall be reported in table 3C(4) of FORM GST RET-1. Recipient will get credit during a tax period on the basis of the details of documents uploaded by the supplier up to the 10th of the month following the month for which the return is being filed for. Such credit can be availed . Supplies attracting RC will be reported only by the recipient and not by the supplier on GSTIN level in this annexure. 6 Digit HSN/SAC reporting is mandatory for large taxpayers. Small tax payer shall have option to report or not to report HSN/SAC. Wherever, supplies are reported as net of debit/credit notes, the value may become negative in some cases and the same may be reported in negative value. ….Continued…
- 7. Features of Form GST ANX-1 (Details of Outward supplies, imports and inward supplies attracting Reverse Charge) ANX-1 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 issue of debit / credit notes. However, the tax amount under cess will be reported by the taxpayer himself. Place of supply shall have to be reported mandatorily for all supplies. Documents not uploaded during existing returns filing system can be uploaded in new return filing mechanism. Following scenarios may happen: (a) If a doc not been reported in GSTR-1 and tax not been paid in Form GSTR-3B? In this case, document shall be uploaded and tax shall be paid along with interest except in case of credit notes. (b) If a doc not been reported in GSTR-1 but tax paid in Form GSTR-3B? In this case, document shall be uploaded and adjustment of taxes so paid shall be made in GST RET-1. (c) If doc reported in GSTR-1 but tax not been paid in Form GSTR-3B. In this case, document shall not be uploaded but adjustment of taxes so paid shall be made in GST RET-1.
- 8. ANX-2 ANX-2 will be substitute of GSTR-2 and it will be auto populated as per ANX-1 filed by suppliers on real time basis which shall be available for feeding response up to 10th of the month following the month for which return is being filed for monthly filer and 10th of the month following the quarter for which return is being filed for quarterly filer. Recipient has to take action on auto populated documents to “Accept” or “Reject” or “Pending” for each invoice/line item after 10th of month following the month in which such documents have been reported. However, in case of quarterly return filers communication of such rejected documents and any further action on such rejected documents shall be done only in the return for the next quarter. 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. Pending invoices will not be available for amendment by the supplier until rejected by the recipient. Any document, 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 the 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-1). ….Continued… Features of Form GST ANX-2 (Details of auto-drafted inward supplies)
- 9. Features of ANX-2 ANX-2 Status of return filing (not filed, filed) by the supplier will also be made known to the recipient in FORM GST ANX-2 of the tax period after the due date of return filing is over. Recipients would be able to check the return filing status of the suppliers. This 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. Trade name of the supplier will also be shown along with GSTIN. Legal name will be shown where trade name is not available. 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-1 which may be adjusted in table 4A(11) of FORM GST RET-1 to arrive 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. FORM GST ANX-2 will be treated as deemed filed upon filing of the main return (FORM GST RET-1) relating to the tax period. The documents uploaded in FORM GST ANX-1 for month ‘M’ by a supplier who did not file his return for the previous two consecutive period (M-1 and M-2 months)shall be made available to the recipient in FORM GST ANX-2 with an indication that the credit shall not be available on such documents. For suppliers filing return on quarterly basis, this period will be one quarter.
- 10. Advantages of New GST Return A taxpayer will be able to upload invoices 24/7 to the GST Portal. A recipient will be able to accept or reject an invoice on a real-time basis. A recipient will be able to view the supplier’s return filing status on the portal. If taxpayer report a wrong transaction in return, they will be able to file an amendment return. For every tax period, a taxpayer will be given the option to file two amendment returns i.e. ANX-1A & ANX-2A Profile-based returns: A taxpayer can create his/her profile on the basis of the nature of the supplies initiated and received. The return will display specific information fields that are pertinent to a taxpayer’s profile. 70 to 80% of the tables will be auto-populated. The invoices /documents on which refund has already been claimed by the supplier/recipient shall not be open for amendment
- 11. Limitations of New GST Return ITC availed on the basis of invoice (i.e. missing invoice) which is not uploaded by the supplier within stipulated time frame will be added to GST output liability. An invoice will be deemed to be locked after the return for a specific tax period is filed by a recipient under the following conditions: i) A supplier uploads an invoice. ii) The invoice is made accessible to the recipient. iii) The invoice has neither been rejected nor kept as pending by the recipient. A locked invoice on which a recipient has availed credit will not be permitted to be amended by a supplier. To amend such a kind of a reported invoice, the supplier will need to issue a credit/debit note. A wrongly locked invoice can be unlocked online by the recipient subject to reversal of ITC claimed by him/her and online confirmation thereafter.