A new return system was announced in the 35th GST Council Meeting to simplify the GST filing process for taxpayers. From now on, you will have to file one main Form GST RET-1. This form has 2 annexures; Form GST ANX 1 and Form GST ANX 2.
Let us discuss Form GST RET 1 and the process to file it in detail.
Form GST RET-1 is a normal GST return that you can file on monthly/ quarterly basis. The following details will be included in this Return form:
You can file this form if you are into B2C/ B2B supplies, inward supplies on which a reverse charge is applicable, NIL rated supplies or zero rated supplies. Also, if you are supplying through e-commerce operators, this form is applicable.
For large taxpayers (if your turnover is exceeding 5 crore in the previous FY), it is mandatory to file the return on a monthly basis.
For small taxpayers (if your turnover is up to 5 crore in the previous FY), you can choose to file the return quarterly.
Large taxpayers will file Form GST RET-1 for the first time by 20 January 2020 (for December 2019), whereas small taxpayers will file the first form from 20 January 2020 for the quarter October to December 2019.
The new form consists of 9 parts. The details are given below:
1. GSTIN: You have to mention your GSTIN here.
2. Other details: On entering your GSTIN, the legal name, trade name, ARN i.e. application registered number and the date of ARN will be automatically generated.
3. Supply of outward invoices, inward supplies attracting reverse charge, debit/ credit notes, etc. and tax liability: Details of outward supplies made to consumers and un-registered persons and also details of inward supplies attracting a reverse charge will be auto-populated from the respective tables of Form GST ANX-1 and GST ANX-2. This summary is sub-divided in 5 parts:
Apart from these details, you have to report liabilities which are related to the period before the current return filing system was introduced. If there is any other liability (this includes excess tax which is collected from the recipient) you have to mention it here.
B. Details of inward supplies attracting reverse charge: Inward supplies which have a reverse charge applicable and import of services will be auto-populated from Form GST ANX-1.
For both these amounts, the net value of debit/ credit notes and the advances on which tax is already paid at the time of payment will be considered.
C. Details of debit/ credit notes issued, advances received or adjusted and other reduction in liabilities: Details of debit/ credit notes issued when you had supplied goods will be auto-populated from Form GST ANX-1. Apart from this, you should report the following details:
D. Details of supplies having no liability: You have to report the following details here:
E. Total value and tax liability: The total of A, B, C and D will be the total value of supplies and your tax liability will be automatically computed.
4. Summary of inward supplies for claiming Input Tax Credit (ITC): The details of all purchases to claim ITC are summarised here. The details will be auto-generated from Form GST ANX-1 and Form GST ANX-2. It is divided into 5 parts:
A. Details of ITC based on auto-population from FORM GST ANX-1 and action taken in FORM GST ANX-2 and other claims: You can claim any eligible credit amount if you have missed it while filing Form GSTR-3B. Also, you can claim a provisional credit if any documents (for e.g. invoices) are not uploaded by the supplier.
The following amounts will be automatically generated from Form GST ANX-2:
These amounts will be automatically generated from Form GST ANX-1:
B. Details of credit reversals: You have to mention the following amounts:
C. Net ITC available: It is the difference between details of ITC (A) and details of credit reversals (B).
D. ITC declared during first 2 months of the quarter: This table is applicable only if you file returns on a quarterly basis. The details of input tax credit amount declared for the first two months will be mentioned here.
E. Net ITC available: It is the difference between Net ITC available (C) and the ITC declared during first two months of the quarter (D).
5. Amount of TDS and TCS credit received in electronic cash ledger: These details will be based on:
6. Interest and fee liability: The system calculates the interest and late fees if you have filed a late return. You have to self-assess the interest if:
7. Payment of tax: You will mention all GST details and cess for the tax period. You have to pay your tax liability, interest amount and late fees in cash only.
8. Refund claimed from electronic cash ledger: The amount will be auto-generated from the electronic cash ledger.
9. Verification: By clicking on the checkbox and signing the form, you will verify the details reported in the form. After verifying, you can file your return.
This form is an annexure to Form GST RET-1. It includes details of outward supplies, inward supplies on which a reverse charge is applicable and goods/ services imported by you. You need to report details according to the invoices. You can do so with the help of continuous uploading facility will be available on the GST portal.
This form is an annexure which you need to file as a part of Form GST RET-1 (Normal). The form contains the following details:
You have to report details in Form GST ANX-1 according to the invoices generated. You will be able to access the continuous uploading facility once it is uploaded on the GST portal. Details reported in Form GST ANX-1 will be auto- populated to Form GST ANX-2 where the receiver of supplies will access the data.
If you are a large taxpayer (your turnover is exceeding Rs 5 Crore in the previous FY), you will have to file this monthly form from October 2019 onwards.
In case you are a small taxpayer (your turnover is up to Rs 5 Crore in the previous FY), you have to file this form for the first time in January 2020 for the October to December 2019 quarter.
Before you proceed to file Form GST ANX-1, you have to answer a questionnaire which is divided in two parts:
Part A: You have to give answers to questions related to retaining the option given in the previous tax period.
Part B: This part contains the detailed questionnaire related to your supplies activities.
After answering the questions, you will file Form GST ANX-1. The parts of the form are described below:
Part 1: Basic Details
In the first part of the form, the following details will be displayed:
Based on the GSTIN, ARN (Application reference number) and the ARN date will be automatically generated.
Part 2: Details of outward supplies and inward supplies on which a reverse charge is applicable
These details will be filled under different tables. The table numbers along with the details are given below:
3A. Supplies made to consumers and un-registered persons (i.e. B2C): Supplies should be reported tax wise. You need not to mention the HSN code in this table.
3B. Supplies made to registered persons: All supplies excluding those on which a reverse charge is applicable made to registered persons should be mentioned here.
3C. Exports with payment of tax: All exports will be reported here. You have to mention the shipping bill number or the bill of export number along with the export invoice details. The remaining details can be mentioned after filing the return. A separate tab will be made available on the GST portal for it.
3D. Exports without payment of tax: All exports on which tax is not paid will be reported here. You should mention the shipping bill number or the bill of export number too.
3E. Supplies to SEZ units/ developers with payment of tax: The supplier has an option if he wants to claim refund on supplies or the SEZ unit. The SEZ unit can also avail ITC and claim a refunds only when the supplier is not taking benefit of the refund. Amendments can be reported.
3F. Supplies to SEZ units/ developers without payment of tax: Supplies without any tax payment can be reported here. Amendments can also be reported here.
3G. Deemed exports: Supplies which are considered as deemed exports are reported here. Either the supplier or the person who is receiving exports can claim a refund on the exports.
3H. Inward supplies attracting a reverse charge: These details should be reported as per the GSTIN.
3I. Import of services: You need to report services which you have imported. The supplies on which tax is paid should be reported here.
3J. Import of goods: Details of taxes paid on import of goods should be reported.
3K. Import of goods from SEZ units/ developers on a Bill of Entry: Goods reported here should be charged under IGST at the time of clearance. Hence, they should not be taxed again while filing.
3L. Missing documents on which credit has been claimed: Details of supplies on which a credit is claimed but they are not reported by the supplier should be reported here. You have to give details as per the documents.
Part 3: Details of the supplies made through e-commerce operators liable to collect tax under section 52
Supplies which are given using e-commerce operators and tax should be collected under section 52 should be mentioned here.
When you file GST RET-1 (Normal) you need to file Form GST ANX-2 as a part of the return filing process.
The Form GST ANX-2 is an Annexure of Inward Supplies or purchases made. The form contains details of inward supplies that are auto-populated from Form GST ANX-1.
You, as a recipient of inward supplies of goods/service can choose to accept/ reject the documents uploaded by the supplier. You may also keep the decision pending after the 10th of the month succeeding the month in which such invoices have been uploaded.
However, if you are a quarterly return filer, you can communicate the rejection and any further action to be taken on such rejected invoices only when the return for the next quarter is filed.
If you choose to accept the documents, it means that invoices uploaded in Form GST ANX-1 are correct.
Part 1: Basic details
This is the first part of the annexure. It displays your general details like GSTIN, legal name, trade name (if any), ARN (Application Reference Number) and the date of filing.
Part 2: Inward supplies received from a registered person (other than the supplies attracting reverse charge), imports and supplies received from SEZ units / developers on Bill of Entry
This part includes details as below:
3A. Supplies received from registered persons including services received from SEZ units (other than those attracting reverse charge
3B. Import of goods from SEZ units / developers on Bill of Entry
3C. Import of goods from overseas on Bill of Entry
These details are auto-populated from tables 3B, 3E, 3F and 3G of your supplier’s Form GST ANX-1.
Part 3: Summary of the input tax credit
This contains the total amount of Input Tax Credit involved on the credit on all documents which have been rejected/ accepted/ have been kept pending. This includes the net of debit/ credit notes.
Part 4: ISD credits received (eligible credit only)
This part consists the document details of input tax credit received from the Input Service Distributors (ISD).
Form GST Ret-1A is an amendment return to Form GST RET-1. You can file this amendment return if details reported in the main return were not auto-populated.
You can pay the liability arising on filing the amended return. In case you have a negative liability, it will get carried forward in the next tax period to the main return.
You can file an amendment return twice for every tax period.
Additionally, there will be some offline tools in the new mechanism.
A. No, you can report advance amount or advance adjustments in GST RET-1.
A. In this case, the amount will be added to the liability of the subsequent month in which you have uploaded the details.
A. No, you will not get a refund. This amount will be carried forward in the next tax period in Form GST RET-1.
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