The government on Tuesday unveiled the new goods and services tax (GST) return forms that will make the process of filing monthly returns simpler for taxpayers.
The finance ministry has also put in place a transition mechanism which allows taxpayers to try the new return filing forms during July-September, but it will become mandatory only from October. Here is everything you need to know about the new monthly GST return filing mechanism:
– Currently, companies and businesses file tax returns via GSTR-3B or summary form and GSTR-1, which entails details of outward supplies.
– The new return mechanism will have three forms – one main return form (Form GST RET-1) and two annexures (Form GST ANX-1 that will capture details of outward supplies and Form GST ANX-2 that will be the purchase form). The new mechanism comes with some offline tools as well.
– From July 2019, businesses would be able to upload invoices using the Form GST ANX-1 offline tool on trial basis for familiarisation.
– They would also be able to view and download, the inward supply of invoices using the Form GST ANX-2 offline tool under the trial programme. The summary of inward supply invoices will also be available for view on the common online portal.
– Additionally, from August, users can import their purchase register in the offline tool and match it with the downloaded inward supply invoices to spot mismatches.
– It is important to note that this trial would have no impact at the back end on the tax liability or input tax credit of the taxpayer during July-September. In this period, taxpayers shall continue to fulfil their compliances by filing GSTR-1 and GSTR-3B. Failure to do so will attract penalties.
– Large taxpayers, with aggregate annual turnover over Rs 5 crore in the previous fiscal year, would upload their monthly Form GST ANX-1 from October 2019 onwards.
– Small taxpayers, who have a turnover of up to Rs 5 crore and file returns quarterly, will need to file the first compulsory Form GST ANX-1 only in January 2020 for the quarter ended December 2019.
– Invoices can be uploaded in Form GST ANX-1 on a continuous basis both by large and small taxpayers from October 2019 onwards.
– Form GST ANX-2 may be viewed simultaneously during this period, but no action shall be allowed on such form.
– During October and November 2019, large taxpayers would continue to file Form GSTR-3B on monthly basis. They would file their first Form GST RET-01 for the month of December 2019 by 20 January 2020.
– Small taxpayers would stop filing Form GSTR-3B and would start filing Form GST PMT-08 from October 2019 onwards. They would file their first Form GST-RET-01 from 20 January 2020 for the quarter December 2019.
– From January 2020 onwards, Form GSTR-3B shall be completely phased out and all taxpayers shall be filing Form GST RET-01.