Important Differences Between GST RET-1, GST RET-2 and GST RET-3

Last Update Date : July 19, 2019
Estimated Read Time: 4 min

Differences Between GST RET-1, GST RET-2 and GST RET-3

The government has introduced a new GST return filing system and launched three new GST return forms with the aim to simplify the GST return filing process.

Read this guide by H&R Block to find out the key differences in the new GST forms named GST RET-1, GST RET-2 and GST RET-3.

Background of New GST Return

The introduction of the new GST return filing system was declared in the 31st GST Council meeting. The new forms will be first implemented on a trial basis from July 2019. The forms will become operational from October 2019 onwards.

New GST Return Forms

The new GST return forms are:

  • Normal Return Form GST RET-1
  • SAHAJ Return Form GST RET-2
  • SUGAM Return Form GST RET-3

The new GST Forms will replace GSTR-1 (details of outward supplies), GSTR-2A (details of inward supplies) and GSTR-3B (monthly self-declaration form).

Filing Procedure for the New GST Forms

Even though the forms have changed, the method to fill these new forms remains the same.

  • Step 1: Enter outward supply details in GST ANX-1.
  • Step 2: Finalise the purchases as per the details which are auto-populated in GST ANX-2.
  • Step 3: File your GST return using Form GST RET-1/ Form GST RET-2/ Form GST Ret-3 on the GST portal.

Differences Between GST RET 1, GST RET 2 And GST RET 3

Criteria Normal Return
Form GST RET – 1
SAHAJ Return
Form GST RET – 2
SUGAM Return
Form GST RET – 3
Type This return is filed on a  monthly or quarterly basis This return is filed on a quarterly basis This return is filed on a quarterly basis
Applicability This form is applicable to taxpayers making all kinds of inward supplies (purchases) and outward supplies (sales) Applicable to B2C supplies and inward supplies  (purchases)  on which reverse charge mechanism applies Applicable to B2C and B2B supplies and inward supplies  (purchases) on which reverse charge mechanism applies
Threshold limit Turnover above Rs 5 crores (monthly return)

Turnover below Rs 5 crores (quarterly return)

Turnover below Rs 5 crores Turnover below Rs 5 crores
Non- Applicability This form is not applicable to:
1. Supplies to e-commerce operators
2. Exports/ Imports of goods or services
3. Supplies to/from SEZ units/developer
4. Deemed Exports
This form is not applicable to:
1. Supplies to e-commerce operators
2. Exports/ Imports of goods or services
3. Supplies to/from SEZ units/developer
4. Deemed Exports
ISD Credits Can receive credits Cannot receive credits Cannot receive credits
HSN Code

(a 6 digit number based on the annual aggregate turnover)

Mandatory for taxpayers with a turnover above Rs 5 crores

Optional for taxpayers with a turnover below Rs 5 crores

Optional Optional
Changing the type of return You can switch over to:
1. Normal (quarterly) return or
2. SAHAJ return or
3. SUGAM returnOnce in a FY at the beginning of any quarter.
You can switch over to:
1. Normal (quarterly) return or
2. SUGAM returnMore than once in a FY at the beginning of any quarter.
You can switch over to:
1. Normal (quarterly) return or
2. SAHAJ returnMore than once in a FY at the beginning of any quarter.
Input Tax Credit (ITC) on invoices not uploaded/ missing invoices Allowed to avail Not allowed to avail Not allowed to avail
Tax to be paid on Monthly basis Monthly basis Monthly basis
Making amendments to the final return File Form GST RET – 1A File Form GST RET – 2A File Form GST RET – 3A

 

Here, B2B means registered persons while B2C means consumers and unregistered persons.

People Also Ask

Q. How many returns do I have to file in a year?

A. As a large taxpayer having a turnover above Rs 5 crores, you will have to file 12 returns in a year. While small taxpayers having a turnover up to Rs 5 crores will have to file 4 returns in a year (quarterly basis).

Q. What is the Prototype of GST Return forms?

A. The GST Portal has a prototype of the new return forms where you can learn how the form functions.

Q. When should I pay the Goods and Service Tax?

A. You have to pay GST every month. The return can be filed monthly or quarterly depending on the form you choose.

Q. Is there any change in GSTR 4?

A. No, there is no change in the returns from GSTR 4 to GSTR 11. You can file them as earlier.

Irrespective of the form you select, you need to pay GST on a monthly basis by using the payment declaration form (FORM GST PMT-08). The due date of GST payment is the 20th of the month following the month for which the return is to be filed.

 

How Can H&R Block Help You?

Several businesses find it challenging to focus on their business while trying to be GST compliant. This is where we come into the picture. Our team of in-house GST experts can help you meet all the GST compliance requirements right from registration and filing of returns to handling notices.

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CA Ankita Mathur
CA Ankita Mathur
Ankita, a Big 4 alumna, is a tax expert at H&R Block (India) with vast experience in managing GST-related business services. An avid traveller, Ankita is a regular contributor to the CAclubindia and loves helping people understand about GST and helping companies be GST compliant.