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New GST return system – Transition plan

new gst return system 1

The GST Council in its 31st meeting decided that a new GST return system will be initiated to facilitate taxpayers. Government introduced a transition plan for all the taxpayers under the goods and services tax switching to new simpler return Forms.  In order to ease the transition to the new return system, a transition plan has been worked out. This mechanism allows taxpayers to try the new return filing Forms during July-September and it will become mandatory only from October. The new return mechanism will have 3 Forms – one main return Form (Form GST RET-1) and two annexures (Form GST ANX-1 that will capture details of outward supplies and Form GST ANX-2 that will be the purchase Form). The new mechanism comes with some offline tools as well.

From July 2019, the users can upload invoices using the Form GST ANX-1 offline tool on trial basis. Form GST ANX-2 offline tool will include viewing and downloading the inward supply of invoices under this trial program. They would also be able to import their purchase register in the offline tool and match it with the downloaded inward supply invoices to find mismatches from August 2019.The summary would also be available for view on the common portal online.

For a period of three months i.e. July to September, the new return system (ANX-1 & ANX-2) would be available as trial which would have no impact at the back end on the tax liability or input credit of the taxpayer. Taxpayers shall continue fulfilling their compliances by filing Form GSTR-1 as monthly or quarterly basis and Form GSTR-3B on monthly basis. Non-filing of these returns shall attract penal provisions under the GST Act.

From October 2019, Form GST ANX-1 shall be compulsory and Form GSTR-1 would be replaced by Form GST ANX-1 for all large taxpayers. Large taxpayers with aggregate annual turnover over INR 5 crore in the previous financial year would upload their monthly Form GST ANX-1. However, small taxpayers whose turnover is up to INR 5 crore will file the first compulsory quarterly Form GST ANX-1 in January 2020 for the quarter October to December of 2019. Invoices can be uploaded in Form GST ANX-1 on a continuous basis both by large and small taxpayers from October 2019.

In addition to the above, small taxpayers would stop filing Form GSTR-3B and start filing Form GST PMT-08 from October 2019 onwards. They would file their first Form GST-RET-01 for the quarter October 2019 to December 2019 from January, 20, 2020. From January 2020, all taxpayers shall be filing Form GST RET-01 and Form GSTR-3B shall be completely phased out.

Also, separate instructions shall be issued for filing and processing of refund applications between October and December 2019.

If you are looking to keep yourself updated about the recent compliances or requires assistance in filing of GST returns, GST assessments and GST audits, our team of experts can assist you in complying with the GST regime.

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