This system was proposed to be implemented from 1.Jan.2020, however due to practical difficulties date further extend to 1.April.2020. Vendor Payments – Is Holding Payments Justified For Not Filing GST Returns? This the simplified return system for the taxpayer for easy filling of GST returns. Here are the steps to download and install the Offline Tool. 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. The council made a recommendation to implement this new system in a phased manner from October 2019 to facilitate taxpayers. The details of the indicative transition plan are as follows: – The important details that need to be declared in Form GST ANX-1 are Outward Supplies, Inward supplies attracting reverse charge and details of Import of Goods and Services. New GST Return System. GST return filing is generally done either on a quarterly or annual basis. Let's look at the advantages and disadvantages associated with it. GST returns are a detailed report of the sales and purchases made along with tax collected or paid. The GST Council in its 31st meeting had decided that a new GST return system will be introduced for taxpayers. We will begin by a tabular presentation about returns under the existing scheme. 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. Ltd. 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. Read to know terms like a pending invoice, missing invoice. 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.. GST Return : New GST Return System- Complete Guide • One monthly return for regular taxpayers (GST RET-1) • NIL returns can be filled by SMS • Taxpayers with turnover up to 5 Cr are included in the "Small Taxpayer" base. 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. Through GSTR-3B, the taxpayer self declares his tax liability and ITC and pays his tax by utilizing cash and ITC both, GST Anx-1 just like GSTR-1 reports the invoice level liability and is uploaded on the portal. Consolidated Credit/Debit Note details can be given under the new return system. It was then decided that a new Return System under GST would be introduced for taxpayers in the 31st GST Council Meet. Credit note & debit note in the new GST returns will have some changes in the way it was reported in GSTR-1 and GSTR-3B. The GSTN has introduced Demo offline tools of new return, option for amendment return, availing ITC, uploading invoices online and watch our video to know all about New GST Returns. A recipient can report missing invoices at an invoice level (that is when a supplier has not uploaded an invoice in T+2 period). 5 crores and have only B2C supplies and inward supplies attracting reverse charge can file this return. 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. Know about the contents of the new return format and its annexures. HSN will be captured at the invoice unlike in the earlier GST return system. Efiling Income Tax Returns(ITR) is made easy with ClearTax platform. As ITC will not be eligible to be taken on these invoices, the recipient will need to reject these invoices. The new system was supposed to be launched on 1 October this year. The taxes payable thereafter which can be claimed as ITC will be posted in the ITC table of the recipient’s return before the 11th of the following month. As per the latest press release, dt: 11th June 2019, It has been decided as under: Large tax payers, i.e. The new system was supposed to be launched on 1 October this year. The current GST return filing system (GSTR 1, 2A and 3B) is operational until 30 September 2020. ClearTax serves 2.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India. 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. sales. The government plans to improve existing GST return filing system and dumps the new GST Return System. The trial phase will be for users to familiarise themselves with the annexure forms of the new return system. File Income tax returns for free in 7 minutes, Get expert help for tax filing or starting your business, Curated Mutual Funds & plans for tax savings, Complete solution for all your e-invoicing needs, I-T, e-TDS & Audit Software for CAs & Tax Professionals, 1 click auto-fill GSTR-3B with G1 & 2B data. The new GST return system will come into action from October 2020 onwards. Save taxes with ClearTax by investing in tax saving mutual funds (ELSS) online. The GST council announced the new GST quarterly returns for small taxpayers known as Sahaj & Sugam. The new GST return system will have three main components – one Main Return (FORM GST RET-1) two Annexure, i.e. Please share the blog with your friends also. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. CATEGORY 1 – RETURN FILLING SYSTEM FOR TURNOVER BELOW 5 CRORE. There will be two types of tax payers: 1. 5 crores and have only B2C, B2B supplies and inward supplies attracting reverse charge can file this return. There will be provision for the amendment of the return under the new GST return system. GSTR-1 reports liability. These returns would require lesser information to be declared as when compared to a regular taxpayer. 1. Taxpayers under the present return system will need ample time to adapt to the new GST return system. The present return filing system (GSTR-1, 2A & 3B) will continue until September 2020. The pain point during the transition is that the taxpayer must get used to new features such as the upload of invoices in GST … New GST returns allows small taxpayers to upload invoices by 11th of the month after quarter. With this demo version of the prototype, a taxpayer will be able to navigate across different pages. Additional Features of New GST Return Filing System The New Filing System emphasis simultaneously uploading invoices on a real-time basis to enable the recipients to take instant action. A user will also get HSN via his GST ANX-2, wherever a supplier was supposed to declare the HSN code. This offline tool has also been introduced to get feedback from the users. Small Tax payers . 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 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. A taxpayer will also be allowed to make payment through an amendment return, which in turn will help the taxpayer in saving on his interest liability. However, the look and feel of the offline tool would be the same as that of the online portal. Availing of ITC will depend on uploading of invoices or debit notes by the supplier, within the stipulated time frame. The Form PMT-08 is for payment of self-assessed tax under the new GST returns. The New Return System has been launched on a trial basis and the prototypes released. 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. An overview of the key terms and processes that are distinguishing under the New GST returns are explained here. Amendment of a GST invoice will be allowed only if ITC has not yet been availed by the recipient. From December 2019, large taxpayers will have to start filing GST RET-01, the main return under the new return system. Know about the integration of GST returns with E-Way bills under the New Return System. Form GST ANX-1 will require details of all the transaction on which tax is liable to be paid. There will be no requirement for the separate filing of GST ANX-1 and GST ANX-2. The GST council in 31st meeting recommended the introduction and implementation of a new GST return system. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. 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. Filling PART A of Questionnaire of GST ANX-1 Below are some of the benefits of simplified returns which makes its introduction a necessary move: Simplified returns are … MSMED Act fixes a maximum credit period to pay MSME vendors. The GST council in 31st meeting recommended the introduction and implementation of a new GST return system. Part A – For uploading Sales invoices – 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 taxpayer creates a challan on the portal, and deposit cash and this cash payment by the taxpayer gets populated in the electronic cash ledger of the taxpayer, GSTR-3B is the consolidated summary of return of inward and outward supplies. 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. In order to allow businesses to get used to new returns, a trail functionality has been enabled on the GST common portal. It is the Monthly/Quarterly return that should be filed by every registered dealer. To amend any specific value of a locked invoice, either a supplier will have to raise a debit/credit note, or a supplier can seek the help of the recipient in unlocking the invoice so that he will be able to make an amendment by filing an amendment return. Users can learn how to take action in FORM GST ANX-2 offline tool. Which return is applicable? 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. Find the comparison between Old vs New GST Returns Filing System. In this blog, we will discuss in detail what these new return forms are, the difference between the existing and new returns, implementation schedule of new returns since these will be implemented in a phased manner and the intended benefits of the new return forms. We have tried to present the New GST Return System in a summarised manner. Here is all you need to know on transitioning to the New Return System from the current system. Here are the steps to upload data in GST ANX-1 using the offline tool. The Large Taxpayer will file their First GST RET-1 for the month of December 2019 by 20th January 2020. Find the key differences in reporting of Inward supplies and claiming of ITC in Old vs New GST Return Filing System. To learn more about the advantages associated with the simplified GST return, click here. ClearTax is a product by Defmacro Software Pvt. Roadmap to new returns system: Large Tax Payers. 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. The GST council introduced new quarterly returns called Sahaj & Sugam in 27th GST council meeting. RET-1 needs to be filed based on Form GST ANX-1 and Form GST ANX-2. Authorities will calculate tax liability based on the filed returns. In order to ease the transition to the new return system, a transition plan has been worked out. The GST council revealed a new system on May 24, 2018 designed to reduce the complexity of GST filing and excessive documentation. These returns would require lesser information to be declared as when compared to a regular taxpayer. 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). Under the new GST return system, there will be one GST RET-1 and its two annexure GST ANX-1 and GST ANX-2. 5 crores come … Now below is a tabular presentation of the returns under the new system. Let us know the GST Sugam returns in detail. Inward supplies which are liable to RCM has to be declared in GST ANX-1 at the GSTIN level, by the recipient of supplies. Form GST ANX- 1 and Form GST ANX-2. as and when an invoice is booked or accounted for by the taxpayer. New simplified return forms will be introduced in the second half of FY 2019. New GST return system will change the system of invoice management and declaration process. Credit note Debit note Reporting under New GST Returns, New MSME Act and its Effect on the Payment Cycle Under the New GST Returns, Forms under New GST Returns for claiming refund on Exports, Comparison Between the Old & New GST Return System - Miscellaneous, Comparison between Old and New GST returns - Refunds, Comparison Between the Old & New GST Return System - Supplies from Special Economic Zone (SEZ), Comparison Between the Old & New GST Return System - Supplies Under Reverse Charge Mechanism (RCM). The recipient of supplies will be able to take action on these auto-drafted documents, which will be available to them on a real-time basis. The GST Council in its 31st meeting, announced that this new return system would be introduced on a trial basis from April 1, 2019 and will be made mandatory from July 1, 2019. And as per the leading business daily that quotes sources familiar with the … In this article, we will discuss the essential pointers a taxpayer needs to note when it comes to the New GST returns. As per the new process, taxpayers will need to upload the details of outward supplies and certain inward supplies as part of Annexure. NEW GST RETURN FILLING SYSTEM FROM 01-01-2021. They are deemed to be filed on the filing of GST RET1/2/3. New GST Return system will be developed for the Taxpayer by GSTN as decided in the 31st GST Council meeting. inward supplies. Taxpayers considered small if turnover is up to Rs 1.5 crore in the preceding financial year, otherwise considered large taxpayers, Taxpayers considered small if turnover is up to Rs 5 crore in the preceding financial year, otherwise considered large taxpayers, Multiple return forms to be filed depending on the category of taxpayers, such as -, A single simplified main return form GST RET-1 containing 2 annexures GST ANX-1 and GST ANX-2 to be filed by all categories of taxpayers, Revenue invoices can be uploaded only at the time of filing of returns of outward supplies, A mechanism for the continuous upload of revenue invoices on a real-time basis, Input tax credit could be claimed on a self-declaration basis, Input tax credit can be claimed based on invoices uploaded by the supplier, Missing invoices and amendments, if any, could only be made in the return of the following tax periodÂ, Missing invoices and amendments, if any, can be made by filing an Amendment Return, Taxpayers have to file GST returns until their registration has been cancelled, even if an application for cancellation of registration has been submitted, Registration will now be suspended, in cases where a taxpayer has applied for cancellation of registration, and returns will not need to be filed for this period. Small Taxpayer need to file these returns on Quarterly bases while Large … According to the notification released by CBIC: As per the conclusions driven by the 37th GST Council meeting (held on 20 September 2019… For tax liability, the outward supply information as uploaded till 20th of the subsequent month will be considered. Know about the contents and instructions on filing FORM GST ANX-2. The Central Board of Indirect Taxes and Customs (CBIC) has issued a Standard Operating Procedure (SOP) … The GST New Return Offline Tool has been launched on a trial basis since July 2019. This return form will have two annexures, namely, FORM GST ANX … GST Refund process for Exports of both goods & services will become better and seamless under New GST returns system. 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. 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. We will be more than happy to respond. Implementation in New GST Return System Under the new return system, there will be auto-population of key details in returns. GST ANX-2 shows the Information on ITC. The Government has launched the New Filing System under GST on a trial basis. For small taxpayers, their first GST RET-01 will need to be filed for the quarter of October-December 2019. New GST Return System originally planned. Information’s to be provided in new GST returns form. 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. An invoice uploaded by the supplier within the 10th of the following month will be visible continuously for the recipient. Thus, the taxpayers having an annual turnover of upto 5 Crores have the option to either file monthly return or quarterly return. 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. The new GST return system comprises of three main components: FORM GST RET-1/2/3; FORM GST ANX-1; FORM GST ANX-2; Eligibility for New GST Returns. Learn how to file an amendment return using FORM GST RET-1A. Form GST ANX- 1 and Form GST ANX-2. Government dumps new GST Return System. The turnover limit for quarterly filers (small taxpayers) will be considered as Rs 5 crore versus the present limit of Rs 1.5 crore. But all the specified features are not enabled in prototype returns. So, the government is now launching new GST return system. 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. In the case of small taxpayers. New GST Return System has been launched on a trial basis. Current Update related to GST return filing system dated 14 March 2020 Implementation of new and modified GST return system from October 2020. Applying for GST return got simpler-. 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. 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. FORM GST RET-1A - Taxpayers can amend their returns under the New Return System. To know more about the transition into the New Return System, click here. of the new return system. 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