Comparison Analysis Quarterly vs Monthly GST Returns. Know about the contents of the new return format and its annexures. These invoices will be available for availing ITC in the return which is filed by the recipient. Introduction to new gst return system: The government has announced a simple GST filing regime for small taxpayers.This new returns will contain simplified GST returns forms for ease of filing. These returns would require lesser information to be declared as when compared to a regular taxpayer. Filling PART A of Questionnaire of GST ANX-1 The Form PMT-08 is for payment of self-assessed tax under the new GST returns. Availing of ITC will depend on uploading of invoices or debit notes by the supplier, within the stipulated time frame. New GST Return System originally planned. Focus area for Quarterly Return Filers-. The turnover limit for quarterly filers (small taxpayers) will be considered as Rs 5 crore versus the present limit of Rs 1.5 crore. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. A recipient can report missing invoices at an invoice level (that is when a supplier has not uploaded an invoice in T+2 period). The new system will feature only one main return called the GST RET-1, which will comprise of 2 annexures – GST … Learn how to file an amendment return using FORM GST RET-1A. In this article, we will discuss the essential pointers a taxpayer needs to note when it comes to the New GST returns. The return filing system have been completely overhauled & new GST return form SAHAJ, SUGAM & NORMAL have been proposed to be introduced w.e.f 1st October 2019.A prototype of the offline tool has also been shared on the GST common portal to give the look and feel of the tool to the users. A user will also get HSN via his GST ANX-2, wherever a supplier was supposed to declare the HSN code. Ltd. ClearTax offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Comparison Analysis: Old vs New GST Return System - Reporting of Exports, Zero-rated Supplies & Deemed Exports, Comparison Between the Old & New GST Return System: Outward Supplies and Other Tax Liabilities, Comparison Analysis: Old vs New GST Return System - Reporting of Inward Supplies and ITC, How to Upload Data in GST ANX-1 using the GST New Return Offline Tool, How to Download and Install the New GST Return Offline Tool. The old system got revised due to the need for a single, simple and concise return form which will take the place of multiple return forms of complex nature that are currently being filed by taxpayers. An incorrectly locked invoice can be unlocked by the recipient online, subject to a reversal of ITC claim made, and an online confirmation thereafter.Â. As per the new process, taxpayers will need to upload the details of outward supplies and certain inward supplies as part of Annexure. The government of India and the GST Council has introduced the GST 2.0- A New Filing System in order to simplify the GST return filing process. Here are the measures taxpayers can take to ensure that their vendors file their GST returns on time, under the new GST return system. Returns will be filed monthly except for small taxpayers who can opt to file returns quarterly. It is the Monthly/Quarterly return that should be filed by every registered dealer. FORM GST ANX-2 is the annexure for inward supplies under the main return FORM GST RET-1. The government plans to improve existing GST return filing system and dumps the new GST Return System. An invoice on which ITC has already been availed by a recipient will be considered a locked invoice, and will not be open for amendments. Applying for GST return got simpler-. of the new return system. This can be done on a continuous basis, i.e. Here are the steps to upload data in GST ANX-1 using the offline tool. 2.Why New GST return system? The suppliers GSTR-1 invoices get populated into GSTR-2A of the recipient. An overview of the key terms and processes that are distinguishing under the New GST returns are explained here. New GST return system is simplified form of filing return by taxpayer, where taxpayer need to file only a single return along with its annexures (ANX-1 & ANX-2). No GSTR 1 … With this demo version of the prototype, a taxpayer will be able to navigate across different pages. In this article let's cover the most emphasized facts about the changes brought to Invoicing under the new system, how to manage the invoices, involved processes, … ClearTax can also help you in getting your business registered for Goods & Services Tax Law. From December 2019, large taxpayers will have to start filing GST RET-01, the main return under the new return system. According to the notification released by CBIC: As per the conclusions driven by the 37th GST Council meeting (held on 20 September 2019… Vendor Payments – Is Holding Payments Justified For Not Filing GST Returns? New GST Return System Focus area for Monthly Return Filers-. The main reasons for the introduction of this new return filing mechanism, i.e., Goods and Service Tax 2.0, by the government include simplification of tax procedures, evade & control tax evasion, and increase compliance. Small taxpayers can choose between monthly or quarterly filing under the New GST Return system. 5 crores come … It contains details of the outward supplies, i.e. If you have any doubt at any point please ask in the comment box. An E-Way bill is an electronic way bill for the movement of goods. FORM GST RET-1A - Taxpayers can amend their returns under the New Return System. The GST Network (GSTN) has introduced an interactive web-based prototype of the Offline Tool, A taxpayer will be able to analyse and experience the practical aspects of the simplified GST returns with this prototype. Know more about the reporting requirements under new GST returns, Compare between the old and new GST return system to know about changes in reporting of Supplies from Special Economic Zone (SEZ). Details of the documents uploaded by the corresponding supplier(s) will be auto-populated in FORM GST ANX-2. The GST Council in its 31st meeting decided that a new GST return system will be introduced to facilitate taxpayers. GST ANX-2 - The Matching Tool will automatically compare the purchase register and data uploaded by the supplier. It was then decided that a new Return System under GST would be introduced for taxpayers in the 31st GST Council Meet. The new GST return system will be implemented from October 2020. Small Tax payers . To make the task of rejecting invoices hassle-free, the matching IT tool will have the option to create a recipient/seller master list via which the correct GSTIN can be identified. The transition plan that was previously announced was as follows: From July to September, during the trial phase, taxpayers will continue to file their GSTR-1 and GSTR-3B returns as per the current system in place. Authorities will calculate tax liability based on the filed returns. GST ANX-1 (Annexure of Outward Supplies) is for reporting details of all outward supplies, inward supplies liable to reverse charge, and import of goods and services, that will need to be reported invoice-wise (except for  B2C supplies) on a real-time basis. There will be no requirement for the separate filing of GST ANX-1 and GST ANX-2. This prototype will also allow a user to experience various functionalities such as drop-down menus, upload of invoices, upload of the purchase for verifying with inward supplies (system-created), etc. ClearTax is a product by Defmacro Software Pvt. The most important feature of the New System is that the recipient will be able to claim ITC on a provisional basis if the supplier fails to upload invoices or file his return, which will not … Government dumps new GST Return System. Download ClearTax App to file returns from your mobile phone. The GST New Return Offline Tool has been launched on a trial basis since July 2019. Now below is a tabular presentation of the returns under the new system. The GST council in 31st meeting recommended the introduction and implementation of a new GST return system. Information’s to be provided in new GST returns form. Part A – For uploading Sales invoices – Under the new GST return system, there will be one GST RET-1 and its two annexure GST ANX-1 and GST ANX-2. Small Taxpayer need to file these returns on Quarterly bases while Large … Most of these details will be auto-drafted from the details uploaded by the suppliers in their GST ANX-1. Government dumps new GST Return System. Consolidated Credit/Debit Note details can be given under the new return system. Ltd. However Small taxpayers whose turnover in the previous financial year was up to 5 crores will upload their first Quarterly FORM GST ANX-1 only in January 2020 for Quarter Oct-Dec 2019. HSN will be captured at the invoice unlike in the earlier GST return system. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing. Plus, making a reconciliation of GSTR-1 and GSTR 3B form for big taxpayers became a tedious job. The arrival of the New GST Return System & e-invoicing in the near-future spectated to be implemented by October 2020, has raised the requirement of taking the management of Invoices into deliberation.. demoofflinetool.gst.gov.in - GSTN introduces an interactive prototype of the “Offline Tool of New Return”. The new GST return system will have three main components – one Main Return (FORM GST RET-1) two Annexure, i.e. Annexure 1 will contain details of all outward supplies, inward supplies liable to reverse charge and the import of goods and services. The Goods and Services Tax Network had shared a prototype of the offline tool in May, 2019, an official statement said on Tuesday. An invoice which has been uploaded by a supplier, however one of the following scenarios applies to that invoice: An invoice in such cases will be marked pending by the recipient, and no ITC will be availed by a recipient on these pending voices.Â. In order to ease the transition to the new return system, a transition plan has been worked out. Which return is applicable? As ITC will not be eligible to be taken on these invoices, the recipient will need to reject these invoices. New GST return forms from 1st April, 2020 As per the decision taken at the 37th GST Council Meeting, the new GST return system for all taxpayers and for all forms will be implemented from April 2020. Current Update related to GST return filing system dated 14 March 2020 Implementation of new and modified GST return system from October 2020. ; An auto-drafted Annexure, which will primarily include the B2B purchase transactions and other tax credits will be made available by the GST system. There would be capturing of place of supply at document level which shall ensure smooth settlement of IGST. And as per the leading business daily that quotes sources familiar with the … Implementation in New GST Return System Under the new return system, there will be auto-population of key details in returns. Details of the documents uploaded by the corresponding supplier(s) will be auto-populated in FORM GST ANX-2. There will be 1 mandatory GST return under this new system GST RET-1 & Annexure i.e. Invoices that are uploaded by the supplier after the 10th of the following month will get posted in the concerned field of the recipient’s return of the subsequent month, however, the viewing facility will be on a continuous basis. The Small Taxpayer opting to file FORM GST RET-1 on a quarterly basis and will file their first FORM GST RET-1 for Quarter Oct 2019 to Dec 2019 by 20th January 2020. In order to allow businesses to get used to new returns, a trail functionality has been enabled on the GST common portal. 1. The Main Return will be generated by the GST system based on the information available in Annexures and some sections will be kept editable for the taxpayer to fill or update if required. Find the comparison between Old vs New GST Returns Filing System. A user can then share feedback or suggestions with the GSTN.Â, These are some of the changes introduced in the new return system-, There are several terms introduced in the new return system, with regard to the upload of invoices-, Whenever a supplier has not uploaded an invoice or a debit note, and a recipient claims ITC, it will be termed as “missing invoices”. E-way Bill: Changes Introduced In The New Return System Under GST, Invoice Management Under the New GST Returns : Viewing, Locking, Pending, Missing, New GST Return Anx-2 Matching Tool: How To Use The Matching Tool, How to prepare FORM GST ANX-1 Offline using the prototype ANX-1 Offline Tool, Steps to Take Action in GST ANX-2 using the GST New Return Offline Tool, FORM GST RET-1A - Amendment Return To FORM GST RET-1, New GST Returns - Overview, Important Changes, ITC, Amendments, Offline Tool, Form GST RET-1: How To File A Detailed Return, Advantages/Disadvantages of the Simplified Return Forms, Transition Plan to the New GST Return by the Ministry of Finance, GSTN releases the New Return Prototype - demoofflinetool.gst.gov.in, I would like to get latest GST & Tax updates on, Forms to be filed under the New GST Return System, Differences between Current Vs New GST Return Systems, Transition plan to the New GST Return System, Important Changes introduced in the New GST Return System, Upload of Invoices under the New GST Return System, Input Tax Credit (ITC) under the New GST Return System, Amendment Returns under the New GST Return System, This page is best viewed in Chrome, Firefox or IE 11. The present return filing system (GSTR-1, 2A & 3B) will continue until September 2020. 5 crores can file this return by 25th of the month succeeding quarter. Under the new return system, there will be auto-population of key details in returns. Reverse Charge Mechanism (RCM) comparison between old and new GST returns filing system, there are some changes in reporting supplies under reverse charge mechanism (RCM). Read to know about Sahaj form in detail. The recipient has not received the supply, The recipient is of the opinion that there is a need for an amendment in the invoice, The recipient is unsure about availing ITC for the time being. GST returns are a detailed report of the sales and purchases made along with tax collected or paid. Thus, the taxpayers having an annual turnover of upto 5 Crores have the option to either file monthly return or quarterly return. GST Refund process for Exports of both goods & services will become better and seamless under New GST returns system. The old system got revised due to the need for a single, simple and concise return form which will take the place of multiple return forms of complex nature that are currently being filed by taxpayers. New GST Return System. As we already know that new returns are going to replace the old ones.Under new regime of GST Return system, first of all we have to categorize the tax payers on the basis of previous year's turnover. The government has already provided the prototype of the new GST return system. GST ANX-2 shows the Information on ITC. The Central Board of Indirect Taxes and Customs (CBIC) has issued a Standard Operating Procedure (SOP) … ClearTax serves 2.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India. In a fresh upsurge to implement the new return system, Government has recently released the draft new return forms. sales. The recipient can accept/reject or keep the invoices pending, but he cannot edit the invoices as in earlier Return regime. Efiling Income Tax Returns(ITR) is made easy with ClearTax platform. CAs, experts and businesses can get GST ready with ClearTax GST software & certification course. Under the new return system, a taxpayer will be allowed to file two amendment returns for each tax period. From October 2019, GST ANX-1 will need to be filed by large taxpayers, which will replace the GSTR-1 return. Taxpayers whose turnover in preceding FY up to Rs. From October 2019 onwards, the current Form GSTR-1 will be replaced by new return FORM GST ANX-1. Important Changes introduced in the New GST Return System Harmonized System of Nomenclature ( HSN) code will be needed in order to submit details at a document level (on the... A user will also get HSN via his GST ANX-2, wherever a supplier was supposed to declare the HSN code. The taxpayer has to use the latest technologies to overcome those issues. GST ANX-1 & GST ANX-2. New GST returns allows small taxpayers to upload invoices by 11th of the month after quarter. The implementation timeline was however deferred. Continue to read this article to know in detail about the form. The government plans to improve existing GST return filing system and dumps the new GST Return System. To know more about the transition into the New Return System, click here. NEW GST RETURN FILLING SYSTEM FROM 01-01-2021. The GST Council in its 31 st meeting, on 22 nd December 2018, had decided that a new GST return system will be brought for the ease of taxpayers. The new GST return system will come into action from October 2020 onwards. The Large Taxpayer will file their First GST RET-1 for the month of December 2019 by 20th January 2020. Small business taxpayers (under general circumstances) furnish 3 monthly and one annual return. Invoice level liability gets declared in GSTR-1. 5 crores will be required to monthly return by 20th of next month and those with aggregate turnover up to Rs. Information on the ITC is reflected in GSTR-2A. B2B supplies, liable to reverse charge mechanism need not be shown by the supplier in the GST ANX-1, however, the aggregate figure will need to be shown in GST RET-1. Large Taxpayers 2. The New Return System will officially roll out in October 2020 and taxpayers need to be streamlining their documents, preparing for what will hopefully be, a convenient and glitch-free filing system. There are several challenges in the implementation of the new GST return system. Just upload your form 16, claim your deductions and get your acknowledgment number online. New GST Returns. The recipient can avail and utilize this ITC for tax payment. In case ITC is available in the taxpayer’s electronic credit ledger (ECL), it can be utilised for paying the liability in the amendment return. The new GST return system is expected to be implemented with effect from October 2020 for all category of taxpayers. Know about the integration of GST returns with E-Way bills under the New Return System. According to an Official Statement Made on Tuesday: The Goods and Services Tax Network had shared a prototype of the offline tool in May 2019. There would be a main return called FORM GST RET-1 and 2 annexures FORM GST ANX-1 (Annexure of Supplies) and FORM GST … Here is all you need to know on transitioning to the New Return System from the current system. New GST returns have brought changes to the reporting of various particulars like using HSN codes, TDS, TCS for e-commerce operators and Advances received. The concept of B2C-L has been removed. Large Taxpayers: Those taxpayers whose previous year's turnover is more than Rs. In case a recipient has acknowledged and locked an invoice, amendment of that invoice will not be allowed. The New GST Return System has been launched on a trial basis from July 2019, and the full-fledged system will be put into place from April 2020 (earlier: October 2019). New simplified return forms will be introduced in the second half of FY 2019. The new system and format of the GST returns was initially introduced in the 28th GST Council meeting meeting held on 21 July, 2018.The return prototype gave a concrete picture of how the returns look like in actual and the detailed process of filing too. If there is a huge volume of invoices, it may not be practical to lock in individual invoices, and in such cases, deemed locking of invoices will be done on those invoices uploaded which are neither rejected nor have been kept as pending by recipient. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. RET-1 needs to be filed based on Form GST ANX-1 and Form GST ANX-2. inward supplies. The GST council revealed a new system on May 24, 2018 designed to reduce the complexity of GST filing and excessive documentation. © 2021 ‐ Defmacro Software Pvt. Please share the blog with your friends also. A large taxpayer with previous financial year turnover more than 5 crores will upload their monthly Form GST ANX-1 from October 2019 onwards. Now below is a tabular presentation of the returns under the new system. Taxpayers whose turnover in preceding FY up to Rs. It has to file monthly by 11th of next month except in case of small taxpayers with turnover up to 1.5 crores in the preceding financial year, who can file the same on a quarterly basis. There will be unidirectional flow of invoices and recipient will not be allowed to amend the invoices and the same can only be accepted or rejected at the recipient’s end but cannot be amended by him. The GST council in 31st meeting recommended the introduction and implementation of a new GST return system. Know about the contents and instructions on filing FORM GST ANX-2. ICAI Released RTP for CA Intermediate/IPCC May 2020 Examination, Online facility for seeking change of Centre/Group/Medium for appearing in CA Exams, Recent Changes in GST which you Must be Aware of, ICAI Notification-Exemption From Orientation and ITT, Concerns of Students Related To Cancellation Of CA Exams, A Young Woman Chartered Accountant Committed Suicide In Surat, Equalisation Levy Digital Taxation: BEPS Action Plan 1, Depression among the Chartered Accountancy Students, Important Announcement: OPT-OUT Scheme Further Extended By ICAI. The Taxpayers whose turnover in the preceding FY was above Rs. There will be provision for the amendment of the return under the new GST return system. A detailed guide on FORM GST RET-1, the main return under the new filing system. They are deemed to be filed on the filing of GST RET1/2/3. Currently, there are 3 types of New GST Returns GST RET-1 (Normal) GST RET-2 (SAHAJ) GST RET-3 (SUGAM) NEW DELHI: GST officers will immediately suspend registration of taxpayers whose sales return or GSTR-1 forms show "significant differences or anomalies" from the return filed by their suppliers, a move aimed at curbing tax evasion and safeguarding revenues. As per the latest press release, dt: 11th June 2019, It has been decided as under: Large tax payers, i.e. Here are the key differences in reporting of exports, supplies to SEZ and deemed exports. GST ANX-2 (Annexure of Inward Supplies) will report details of all. The amendment of a missing invoice which is reported later by a supplier can be done via an amendment return of the concerned tax period to which the invoice belongs.Â. These returns would require lesser information to be declared as when compared to a regular taxpayer. New GST Return - Overview, Updates - Learn about important changes in New GST Returns prototype. From October 2019 onwards, the current Form GSTR-1 will be replaced by new return FORM GST ANX-1. Under new GST return filing system, every taxpayer whose turnover during the last financial year exceeds Rs 5 crore, will have to file monthly return in form GST RET-1. CATEGORY 1 – RETURN FILLING SYSTEM FOR TURNOVER BELOW 5 CRORE. New system basically consist one main return in form GST RET-1 which includes summery of all the supplies made, input tax credit availed along with details of payment of tax and interest etc. What is the new GST return filing system? Let's look at the advantages and disadvantages associated with it. HSN will be captured at the invoice unlike in the earlier GST return system. Gst common portal individuals, businesses, organizations & chartered accountants in.. This new system was supposed to be paid it comes to the new GST system. For filing FORM GST ANX-2 is the Annexure for inward supplies which are liable to declared! 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