New GST Return – Easy to Details GST Return – GST India – 2020

In this post, We will discuss the Goods & Service Tax [GST] points that the taxpayer wants to make when it comes to the New GST Return. An description of the main words and processes that are defined by the Latest GST Returns is clarified here.

Latest Update

Update as of March-14-2020

The new framework for the return of GST will be introduced from October 2020.
The New Return Filing System (GSTR-1, 2A & 3B) will continue until September 2020.

Subject to notification by CBIC.

Update as of September-20-2019.

As per the decision taken at the 37th GST Council meeting, the new framework for the return of GST for all taxpayers and for all forms will be introduced from April 2020.

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What is the New GST Return System?

At the 31st meeting of the GST Council, It was agreed that a New GST Return scheme would be implemented for taxpayers. The return system would include simpler return forms for ease of filing across taxpayers registered under the GST. In this New Return System, there will be one primary return GST RET-1 and 2 annexes GST ANX-1 and GST ANX-2.

This report would need to be reported on a monthly basis, except for small taxpayers who may opt to file on a quarterly basis. Small taxpayers are taxpayers with a turnover of up to Rs. 5 in the previous financial year.

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Registered with the New GST Return System

The main GST RET-1 Return will contain details of all supplies made, the input tax credit used and the payment of taxes, along with interest, if any. This return will contain two annexed forms, namely GST ANX-1 and GST ANX-2.

GST ANX-1 (Annexure of Inward Supplies) is for the reporting of details of all outward supplies, inward supplies subject to reverse charge and imports of goods and services that will have to be reported on an invoice-wise basis (with the exception of B2C Supplies) in real time.

GST ANX-2 (Annexure of Inward Supplies) will provide description of all inward supplies. Most of these data will be auto-drafted from the information submitted to the supplies. Will be able to take action on these self-made papers, which will be made available to them in real time.

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Differences between Current Vs New GST Return Systems

Old Return-Filing System New Simplified Return System
Taxpayers considered small if the turnover is up to Rs. 1.5 Crore in the preceding financial year, otherwise considered to be large taxpayers. Taxpayers considered small if the turnover is up to Rs. 5 in the preceding financial year, otherwise considered to be big taxpayers.
Different return forms to be filed depending on the types of taxpayers such as – GSTR-1, GSTR-4, GSTR-5, GSTR-6, GSTR-7 etc. A single simplified main return form GST RET-1 containing 2 annexeres GST ANX-1 and GST ANX-2 to be filed by all categories of taxpayers.
Revenue invoices can only be uploaded at the time of filing the returns of the outward deliveries Mechanism for the continuous upload of invoices for revenue on a real-time basis.
Input tax credit may be received on the basis of self-declaration Input Tax Credit can be claimed on the basis of invoices submitted by the supplier.
Lost invoices and amendments, if any, may only be made on the return of the following tax year. Missing invoices and amendments, if any can be made by making an amendment to the return.
Taxpayers must file GST Returns before their registration has been cancelled, even though an application for cancellation of registration has been made. Registration will also be suspended in situations where a taxpayer has applied for cancellation of registration and return do not have to be filed for this time.

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Transition strategy for the New GST Return System

The New GST Return System was launched on a trial from July 2019 and a full-fledged program will be put in operation from April 2020 (earlier: October 2019). The transitional program will be implemented in a staggered manner. The trial process would allow users to familiarize themselves with the annexed aspects of the new return system.

The transition plan previously announced was as follow:

From July to September, during the trial phase, taxpayers will continue to file their GSTR-1 and GSTR-3B returns in accordance with the current system in place. Starting October 2019 onwards, the GST ANX-1 will have to be submitted by major taxpayers to replace the GST-1 return. However, until November 2019, GSTR-3B will still have to be filed. In this case of the small taxpayer. They will have to pay taxes using PMT-08, which will replace their GSTR-3B return.

From December 2019, large taxpayers will have to begin filign GST RET-01, the main return under the new return system. For small taxpayers their first GST RET-01 would have to be registered for the quarter of October to December 2019.

Click here to learn more about the transition to the New Return Method.

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Prototype Offline Demo Tool

The GST Network (GSTN) has introduced an interactive web-based version of the offline tool.

The new method of return. In this sample version of the app, the taxpayer would be able to move through various pages. This prototype will also allow users to experience a variety of apps, such as drop-down menus, invoice uploads, purchase uploads for inward supply verification (system-created) etc.

A taxpayer will be able to evaluate and observe the functional aspects of streamlined GST Returns with this prototype. Users can then share feedback or suggestions with the GSTN.

Click to read more about GST ANX-1 planning and GST ANX-2 action on offline device prototype.

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Relevant improvements made to the New GST Returns System

These are some of the improvements implemented in the current scheme of returns-

  • The Harmonized System of Nomenclature (HSN) code would be used to include information at the document level (based on turnover) over the specific HSN description.
  • The customer would also get HSN via his GST ANX-2 wherever the HSN code was to be announced by the supplier.
  • B2B products, which are subject to a reverse charge system, do not need to be displayed by the manufacturer in the GST ANX-1, but the aggregate amount does need to be shown in the GST RET-1.
  • Inward supplies which are liable to RCM shall be reported by the recipient of the supplies to GST ANX-1 at the level of GSTIN.
  • The definition of B2C-L has been deleted. The turnove limit for quarterly filers (small taxpayers) will be considered as Rs. 5 Crore.
  • The recipient may report missing invoices at the level of the invoice. (i.e. when the supplier has not uploaded the invoice during the T+2 period).

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Uploading invoices under the New GST Return System

There are several terms introduced in the new return system with regard to the uploading of invoices:-

Missing Invoices:-

The recipient will have the option to lock the invoice if he agrees with the details of the invoices. If there is a large volume of invoices, it may not be practical to look up individual invoices. In such cases the deemed lock-up of invoices will be made on those invoices uploaded. Which are neither rejected nor maintained as pending by the recipient.

Unlocking of the invoices:-

The invoice for which ITC has already been rendered accessible to the receiver will be considered a locked invoice and will not be subject to adjustment. In the event that an amendment to a particular invoice is required, the supplier will have to issue a debit or a credit note.

Pending Invoices:-

The invoice has been submitted by the manufacturer, but one of the following conditions applies to the invoice:

  • The receiver is of the opinion that an amendment to the invoice is required.
  • The receiver is not confident whether ITC will be eligible for the time being.

For these instances, the invoice will be named pending from the recipient and no ITC will be used by the recipient on those pending voices.

Rejected Invoices:-

If the GSTIN of the customer is wrongly filled by the manufacturer. The invoice would be clear to a taxpayer who is not the customer of those supplies. Because ITC would bot be able to accept such invoices, the receiver would have to reject such invoices. To make it easy to refuse invoices, the matching IT tool will have the option of creating a recipient/seller master list from which the appropriate GSTIN can be found.

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Input Tax Credit (ITC) as part of the Revised GST Return System

The availability of ITC may depend on the payment of invoices or debit notes by the supplier within the specified timeframe. The invoice uploaded by the supplier will be visible to the recipient on an ongoing basis within the 10th of the following month. The taxes payable thereafter, which can be stated as ITC, will be shown in the ITC return table of the receiver before the 11th of the following month. Such invoices would be available for use by the ITC in the return submitted by the receiver.

Invoices that are submitted by the manufacturer after the 10th of the following month will be displayed on the recipient’s return. The following month in the field concerned, but the viewing facility will be on a continuous basis.

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Switch Return under the New GST Return System

Under the new system of returns, the taxpayer would be required to file two returns of amendment for each tax year. A taxpayer will also be able to make payment through an amendment return which, in effect, will enable the taxpayer to save on his interest liability. In the case that ITC is available in the E-Credit Ledger (ECL) of the taxpayer. It can be used to cover the debit in the amendment return. The modification of the missing invoice, which is later reported by the supplier. May be effected by returning the relevant tax period to which the invoice belongs.

In the event that the receiver has approved and locked the invoice, an amendment to that invoice would not be allowed. In order to change any specific value of a locked invoice. Either, The supplier will be required to submit a Debit/Credit note or the supplier may request assistance from the recipient in unlocking. The invoice in order to be able to make an amendment by filing an amendment return. Modification of the GST invoice will only be enabled if the receiver has not yet made use of ITC.

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Video – New Return Filing System

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Conclusion on New GST Return

I suppose you have followed each step carefully for New GST Return – Easy to Details GST Returns in India. After downloading this software, open this software.

I suppose your PC does not installed this software. Then, you can download this software from ItTechGyan website. Now import that software file to your PC.

At last, I hope you liked this post on New GST Return – Easy to Details GST Returns in India.

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