January 27, 2020

The GST council, in its 31st meeting, in order to increase the transparency and accuracy of the return filing process has decided to implement ‘New GST Returns’.

Currently, these returns will be applicable from April,2020.

The New Return consists of one main return (Form GST RET 1) and two annexures (ANX 1 and ANX 2) to be filed monthly/quarterly based on the aggregate annual turnover in the preceding financial year).

For the small taxpayers (having aggregate annual turnover of less than Rs 5 crore in the preceding financial year), there are options to file quarterly forms like Sahaj ( Form GST RET 2) or Sugam (Form GST RET 3).

 

How to choose from Form GST RET 1,RET 2 or RET 3?

 

Particulars	RET 1-Normal	RET 2-SAHAJ	RET 3-SUGAM
Aggregate Annual turnover in preceding FY	More/Less than Rs. 5 crores	Less Than Rs. 5 crores	Less than Rs. 5 Crores
Frequency of return filing	Normal Quarterly( if less than 5 Crores) Normal Monthly(if more than 5 Crores)	Quarterly	Quarterly
Option to report B2C supplies	Yes	Yes	Yes
Option to report B2B supplies?	Yes	No	Yes
Option to report Exports/Supplies to SEZ	Yes	No	No
Option to report Deemed exports?	Yes	No	No
Inward Supplies attracting reverse charge reportable?	Yes	Yes	Yes
Option to report import of goods/services?	Yes	Yes	Yes
Option to report Missing Invoices?	Yes	No	No
Option to report supplies through e-commerce operators?	Yes	No	No

 

Salient features of new return system

1. Option to file quarterly return is available for taxpayers whose aggregate annual turnover in the previous financial year was upto Rs. 5 Crore. (Earlier, this limit was upto Rs 1.5 Crore.)
2. Option to file NIL return through SMS. 
3.  Invoice details can be uploaded by the supplier and the same can be viewed by the recipient on real time basis. 
4.  Matching tool is available which will help the taxpayer to match their Input Tax credit based on their FORM GST ANX – 2 and purchase register.
5. Option to file Amendment Return from supplier side.(Form GST ANX 1A).
6. In case of annual turnover exceeds Rs 5 Crores, the taxpayer needs to report the 6 digit HSN code on each invoice instead of HSN summary. (It is optional for taxpayers having annual turnover lower than Rs. 5 Crores)
7. Invoice wise details related to RCM applicable transactions to be reported by the recipient in ANX 1. (Currently, supplier is required to report in GSTR 1).
8. Invoice wise details of all B2C sales needs to be reported (irrespective of the existing Rs. 2.5 lakhs limit)