Hello Everyone, in this post we will look into some of the new GST return forms which are issued by the GSTN.
The government of India has issued these GST return forms which any kind of business will have to file to pay GST from the next financial year.
What is the new GST return?
The new GST return system was introduced for taxpayers. This system will carry a simplified return form. That will be easy to file for taxpayers, who all are registered under GST. Under this system, the main form will be GST RET-1 and 2 Annexures GST ANX -1 & ANX -2. This new GST return form will have to be filed monthly, except for small taxpayers.
The GST return forms are listed below:
Normal / GST RET-1
The form GST RET-1 is a normal GST return filing which has 2 annexures (FORM GST ANX-1 and FORM GST ANX-2).
Large taxpayers will have to file this return monthly, but the small taxpayers can file on a quarterly basis. The Form GST RET-1 will replace GSTR 3B from January 2020 for all taxpayers.
Sahaj / GST RET-2
GST Sahaj a simple one-page GST summary return, introduced from October 2019 onwards. Here the taxpayer with a turnover of Rs.5 crores in the last financial year and does B2C supplies may file this return.
The monthly payment of this tax is by challan. While the small taxpayers can opt to file the quarterly return.
Sugam / GST RET-3
GST Sugam a simple returns form introduced from October 2019 onwards. A taxpayer with a turnover of up to Rs. 5 crores in the financial year can file this return.
It is available to small taxpayers who are engaged in both B2B and B2C supplies in India. There is quarterly GST returns filing for small taxpayers with a turnover of up to Rs.5 crores and it is paid monthly by challan.
Important points:
- The new forms would make the filing process much easier. Businesses with annual turnover up to 5 crores can file any one of three forms.
- Provide your HSN wise details at the invoice level than the summary level. The new format will also require the details of 6 digit HSN level wherein the current format you require the details at 4 digit HSN codes.
- According to the GST council, the new forms have been implemented starting from April 1st, 2019. It is mandatory from June 1st, 2019 as per the GST Council.
Conditions to choose a GST Return type
| CONDITIONS | NORMAL (MONTHLY) | NORMAL (QUARTERLY) | SAHAJ RET-2 | SUGAM RET-3 |
|---|---|---|---|---|
| Filing Period | Monthly | Quarterly | Quarterly | Quarterly |
| Turnover above 5Cr | Yes | No | No | No |
| Turnover below 5Cr with only B2C transactions | Yes | Yes | Yes | No |
| Turnover below 5Cr with only B2C and B2B transactions | Yes | Yes | No | Yes |
| Turnover below 5Cr with B2C, B2B, export transactions | Yes | Yes | No | No |
| Allow inward transactions with RCM | Yes | Yes | Yes | Yes |
| E-commerce transactions | Yes | Yes | No | No |
| ITC against missing invoices | Yes | Yes | No | No |
| Nil, Non-GST, Exempted transactions | Yes | Yes | Yes | Yes |
| HSN Code (6 Digits) | Mandatory | Optional | Optional | Optional |
Difference between Old vs New GST return
| Old GST Return | New GST Return |
| Limited of the small taxpayer turnover upto Rs.1.5 crores in prior FY, otherwise treated as large taxpayer. | Limited of the small taxpayer turnover upto Rs. 5 Crore in the previous FY, otherwise treated as large taxpayer. |
| Revenue invoices can be uploaded during the time of return or filing of outward supplies. | The procedure for continuously uploading invoices in real – time. |
| Input Tax Credit (ITC) could be claimed based on self declaration. | Input Tax Credit (ITC) could be claimed by the suppliers based on invoices uploaded. |
| If any Amendment or missing invoices could be made in the return of the future tax period. | Any Amendment or missing invoices can be made by filing an amendment return. |
All about the system of Invoice upload
The recipients from these small taxpayers can avail of input tax credit (ITC) based on the invoice uploaded by the supplier. The small taxpayers would be given an online facility to view and upload the invoices daily. The invoices uploaded by the 10th of every month will be available as ITC to the recipient in the relevant month, similar to a large taxpayer who files a monthly return.
There are various terms which are introduced in the new New GST return. With the concern of uploading invoices. Such as, rejected invoice, pending invoice, and missing invoice.
Pending Invoice
If any of the following cases can be marked as pending, then Input Tax Credit (ITC) will not be availed by the recipient.
- If any invoices have been uploaded by the supplier and the recipient has not received the supply.
- If the recipient is not sure about availing of input tax credit for the time being.
Missing invoice
If a supplier does not upload an invoice, but the recipient claims for input tax credit, then it will be ‘missing Invoice’.
We have come to the end of this post on the New GST return forms. Let us know your views and opinions in the comments section below.