The new – simplified GST return system is expected to be introduced, mandatorily, onto the current GST Returns system of India in the month of October, 2019. As per the transition plan for simplified GST Returns released by the CBIC, the month of October is to play a crucial role in the implementation of simplified returns as it marks the beginning of a new era of GST, with the following updates:
- Form GST ANX-1 replaces form GSTR-1, wherein the taxpayers will be able to upload their invoice data on a regular basis.
- Simultaneously, the taxpayers registered under GST will also be able to view the inward supply summary on the form GST ANX-2, although the user will be unable to take any actions.
- Large taxpayers would still have to file form GSTR-3B until it is completely phased out in the month of January,2020 as the taxpayers file their first ever GST Ret-1 for December (October to December quarter for small taxpayers) and
- Small taxpayers, who would be filing quarterly returns, will also be required to start filing form GST PMT-08 on a monthly basis, from October onwards.
Thus, with just three months to go, and trial modules already in play, let us take some time out to understand the structure of the GST Annexure 1 and GST Annexure 2.
How to fill GST ANX-1?
GST Annexure 1 will be replacing form GSTR 1 from the current GST return system, which will be a self-declaration of outward supplies and inward supplies attracting reverse charge. Form GST ANX-1 consists of 13 sections in total. These sections will be taking specific info like outward supplies, aggregates POS wise and counter-party wise and inward supplies aggregated POS wise and counter-party wise. A tabular classification of information collected is as below:
Outward Supplies at invoice level, consisting of 6 sections as given below:
- Table 3B – Supplies made to registered persons (other than those attracting reverse charge)(including edit/amendment)
- Table 3C – Exports with payment of tax
- Table 3D – Exports without payment of tax
- Table 3E – Supplies to SEZ units/developers with payment of tax(including edit/amendment)
- Table 3F – Supplies to SEZ units/developers without payment of tax(including edit/amendment)
- Table 3G – Deemed exports (including edit/amendment)
Aggregated Outward supplies
- Table 3A(Aggregated POS wise): Supplies made to consumers and un-registered persons (Net of debit notes, credit notes)
- Table 4 (Aggregated Counterparty wise): Details of the supplies made through e-commerce operators liable to collect tax under section 52 (out of any outward supplies declared in table 3)
Aggregated Inward Supplies
- Table 3H(Aggregated Counterparty wise) – Inward supplies attracting reverse charge (to be reported by the recipient, GSTIN wise, net of debit notes and credit notes and advances paid, if any)
- Table 3I (Aggregated POS wise). Import of services (net of debit/ credit notes and advances paid, if any)
Inward Supplies at Invoice Level for claiming ITC.
- Table 3J – Import of goods
- Table 3K – Import of goods from SEZ units/developers on a Bill of Entry
P.S Once the GST system is integrated with ICEGate portal, this section will be shifted to GST ANX 2.
Invoice data of Provisionally Claimed ITC (Yet to be reported by the supplier)
- Table 3L – Missing documents on which credit has been claimed in T-2 /T-1 (for the quarter) tax period and supplier has not reported the same till the filing of return for the current tax period
P.S This section will not be used for populating any data in GST RET 1.
Simplified Returns are supposed to simplify the returns filing for all the taxpayers. Under the new formats, taxpayers will be required to file one monthly return, except small taxpayers and a few exceptions.
Those with no purchases, no output tax liability and no input tax credit in any quarter of the financial year will have to file one ‘Nil’ return for the entire quarter.
And taxpayers with turnover of up to Rs 5 crore in the last fiscal can file quarterly return with monthly payment of taxes on self-declaration basis.
IRIS Sapphire is soon going to launch IRIS Sapphire 2.0 which wil support New Simplified Returns. With every API release by the government, we are working towards building a stable, and easy to use platform for simplified returns.
Till that time, we are conducting regular webinars on unveiling of Simplified GST Returns, you can register for the webinar.