GST Returns

Payment Declaration Form – GST PMT – 08: Definition, Format and Rules

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What is Form GST PMT-08?

The Form PMT-08 is used to make payment of self-assessed tax by all quarterly taxpayers under the new GST returns system. This form shall be used in the first two months of the quarter. It is used for declaring and paying the tax liability and claiming the eligible input tax credit. It is to be used by 20th of the next month (for the first two months of the quarter). It will be followed by the filing of RET-1/2/3 by the 25th of the month following the quarter.

Since the taxpayer pays the monthly tax liability through this form, such a form is a replacement for the current form GSTR – 3B. Thus, GST PMT – 08 is used to declare and pay the tax liability and claim eligible input tax credit. Furthermore, the taxpayer must make the payment of self-assessed liabilities through GST PMT – 08 by the 20th of the month succeeding the month for which tax is to be paid. Once the payment is made, the taxpayer needs to file GST RET – 1, GST – RET 2 or GST RET – 3 by the 25th of the month following the quarter to which such a return pertains.

Format of GST PMT-08

Form GST PMT-08 Format

Key things to keep in mind while filing GST PMT-08

  • PMT-08 form applies to all returns i.e., SAHAJ, SUGAM, and Normal returns (quarterly filing only)
  • A taxpayer who opts to do return filing on a quarterly basis needs to make a payment on a monthly basis depending on the supplies initiated within the month
  • With the help of this form, only eligible ITC can be claimed
  • Self-assessed liabilities will be paid for the initial two months of the quarter for quarterly filers and these amounts shall be populated to RET-1
  • The credit of the tax paid within the initial two months of the quarter will be available at the time of return filing for the quarter
  • Self-assessed liabilities will be paid within the 20th of every month
    Liability can either be settled out of the balance in the electronic cash ledger or electronic credit ledger, whichever is applicable
  • Tax liability and input tax credit (ITC) availed will be based on self-assessment subject to the adjustment made in the main return of the quarter
  • According to Section 50 of the Act, excess ITC claimed/short liability declared will be liable for interest charges. Hence, any late payment will draw interest as per the rate mentioned in Section 50 of the Act
  • Also, the declaration in this form needs to be filed even if no supplies were initiated during the month

What is Form GST Anx-2 under New GST Return?

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Under the New GST Return System, there will be one main return called the FORM GST RET-1 and two annexures i.e. FORM GST ANX-1 and FORM GST ANX-2. The return will have to be filed on a monthly basis, except for small taxpayers (taxpayers with a turnover up to Rs 5 crore) who can opt for the quarterly filing of returns.

What is FORM GST ANX-2?

FORM GST ANX-2 is an annexure to the main return FORM GST RET-1, and will have all the details of inward supplies, for the recipient of supplies to take action by either accepting or rejecting these documents, or marking them as pending, for action to be taken later. If the recipient accepts these documents, it means that the supplies reported in such documents by the suppliers in FORM GST ANX-1 are correct.

What are the contents of FORM GST ANX-2?

GSTIN: A taxpayer needs to input the GSTIN.

Basis details: Basic details such as trade name, legal name, etc. will be auto-populated on the basis of the GSTIN.

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: The details will be entered as follows-

 

Table No. Name of the Table Instructions
3A Supplies received from registered persons including services received from SEZ units The details in these tables will be auto-populated from the following tables of the supplier’s FORM GST ANX-1 return:

3B – Supplies made to registered persons

3E –  Supplies to SEZ units/developers with payment of tax

3F – Supplies to SEZ units/developers without payment of tax

3G – Deemed exports

The recipient has the option to take action on the documents by either accepting, rejecting or marking them as pending.
3B Import of goods from SEZ units/developers on Bill of Entry
3C Import of goods from overseas on Bill of Entry
4 Summary of the input tax credit This will be the total figure of input tax credit for the return filing period, based on action taken by the recipient of supplies such as:

Total credit on all documents that have been rejected

Total credit on all documents that are kept pending

Total credit on all documents that have been accepted
5 ISD credits received This table is for reporting eligible input tax credit that has been received from an input service distributor. This needs to be entered document-wise.

What is the format of FORM GST ANX-2?

FORM GST ANX-2 Format

Key things for taxpayers to keep in mind while filing GST ANX-2

  • The supplier can upload documents continuously and on a real-time basis in FORM GST ANX-1 and will be auto-populated in this annexure i.e. FORM GST ANX-2
  • The details of the documents uploaded by the supplier shall be available for the recipient in FORM GST ANX-2 to take action such as to accept, reject or to keep the document pending
  • If a document is accepted by a recipient, it means that the document has been received before the recipient has filed his return and that the details reported by the supplier are correct
  • Any corrections in the rejected documents can be made only by the supplier through his FORM GST ANX-1
  • If a recipient marks a document as pending, this means he has deferred his action on the said document for a later date, of either accepting or rejecting the document. Input tax credit on these documents will not reflect in the main return i.e. FORM GST RET-1
  • The supplier cannot amend pending invoices until they are rejected by the recipient
  • The status of whether the supplier’s return is filed or not will be made known to the recipient in his FORM GST ANX-2. However, this does not affect the eligibility of the input tax credit available to the recipient, which will be decided as per the Act along with the rules made thereunder
  • A separate functionality will be available to search for and reject an accepted document, on which credit has already been availed. This credit will be shown under reversal in table 4B(1) of FORM GST RET-1, which can be adjusted in table 4A(11) of the same return, in order to arrive at the amount of input tax credit that has been availed
  • FORM GST ANX-2 will be deemed filed based upon the filing of the main return i.e. FORM GST RET-1 relating to the particular tax period
  • If documents have been uploaded by a supplier in his FORM GST ANX-1, but he has not filed his return for the previous two consecutive periods, then the recipient will not be able to take credit on these documents even if the same is made available to him in his FORM GST ANX-2. However, the option will be available to reject or keep these documents pending. For suppliers who file their returns quarterly instead of monthly, then the term ‘two consecutive periods’ are replaced by ‘one quarter’

What is Form GST ANX-1 Under New GST Return?

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What is FORM GST ANX-1?

FORM GST ANX-1 is an annexure to the main return GST RET-1 introduced under the new filing system of simplified returns under GST. This annexure will contain details of all outward supplies, inward supplies liable to reverse charge and import of goods and services. Details in this annexure will have to be reported invoice-wise (except for B2C supplies) based on continuous uploading facility to be made available on GST portal. The reporting can be done on a real-time basis, and will be available for the recipient of supplies to take necessary action in their FORM GST ANX-2.

What are the contents of FORM GST ANX-1?

A taxpayer needs to input the GSTIN and the basic details such as trade name, legal name, etc. will be auto-populated on the basis of the GSTIN.

Details of outward supplies, inward supplies attracting reverse charge and import of goods and services: The details will be entered as follows-

Table No. Name of the Table Instructions Notes
3A Supplies made to consumers and unregistered persons (Net of debit/credit notes) All supplies that have been made to consumers and unregistered persons (i.e. B2C) need to be reported here. The supplies need to be reported in a summary form tax rate wise and net of debit/credit notes.

HSN Codes are not required to be reported here.
3B Supplies made to registered persons (other than those attracting reverse charge) All supplies (other than those which attract reverse charge) that have been made to registered persons (i.e. B2B) need to be reported here. Reporting of supplies made to entities (including Government departments) having a TDS or TCS registration need to be also reported here.

This would also include amendments, if any.

 Only the supply of services (NOT goods) made by an SEZ to a person located in a  domestic tariff area (DTA) needs to be reported here.

The supply of goods by an SEZ to a person located in the DTA shall be reported in table 3K.

The supply of goods or services made TO an SEZ unit shall not be reported here, but reported in table 3E or 3F, as the case may be.

The ‘invoice value’ needs to be reported in column 6 and the ‘taxable value’ in column 9.

For ex: If the taxable value is Rs 200, the tax at 18% will be Rs 36, hence the total invoice value will be Rs 236.
3C & 3D Exports with/without payment of tax All exports with payment of tax (i.e. Integrated tax or IGST) need to be reported in table 3C, while exports without payment of tax need to be reported in table 3D. The shipping bill number / bill of export number that is currently available as on the date of filing of return needs to be reported against the export invoices.

The details of the remaining shipping bills can be reported after filing of the return. A separate functionality for updating details in table 3C 3D will be made available on the portal.
3E & 3F Supplies to SEZ units/developers with/without payment of tax All supplies made to SEZ units / developers with payment of tax need to be reported in table 3E, and supplies made without payment of tax need to be reported in table 3F. This includes amendments, if any. For supplies made with the payment of tax, the supplier will have an option to select if either he will claim refund on such supplies or the SEZ unit. The SEZ unit is eligible to avail input tax credit and claim a refund on unutilised credit after export, ONLY if the supplier is not availing such refund.
3G Deemed exports All supplies treated as deemed exports need to be reported here. This would include amendments, if any. The supplier has the option to declare if the refund will be claimed by him, or the recipient of deemed export supplies. If the refund is claimed by the supplier, then the recipient will not be eligible to avail input tax credit on such supplies.
3H Inward supplies attracting reverse charge (to be reported by the recipient, GSTIN wise for every supplier, net of debit/credit notes and advances paid, if any) All inward supplies which attract reverse charge need to be reported here by the recipient. The details have to be reported GSTIN-wise and not invoice-wise. Advances paid on such supplies shall be declared in the month in which the advance was paid.

The value of supplies reported shall be net of the following:

debit/credit notes, and -advances on which tax has already been paid at the time of payment of advance, if any.

If only an advance has been paid to the supplier, and no invoice or supply received, then on reporting the same, this credit shall reflect in the main return (FORM GST RET-1), but needs to be reversed in table 4 of the said return. This credit can be availed only on receipt of the supply and issue of invoice by the supplier.
3I Import of services (net of debit/ credit notes and advances paid, if any) Services which have been imported need to be reported here. The value of supplies needs to reported net of debit / credit notes, and advances paid, on which tax has already been paid at the time of payment of advance.

The amount of advance paid needs to be declared in the month in which the same was paid.

Details are not required to be reported invoice-wise in this table.

Services received from SEZ units / developers shall not be reported in this table.

If only an advance has been paid to the supplier, and no invoice or supply received, then on reporting the same, this credit shall reflect in the main return (FORM GST RET-1), but needs to be reversed in table 4 of the said return. This credit can be availed only on receipt of the supply and issue of invoice by the supplier.
3J Import of goods The details of taxes paid on the import of goods need to be reported here.

 

These goods were subjected to IGST at the time of import, and are hence not subjected to tax once again while filing this return. The amount of IGST and cess paid at the port of import needs to be reported here, in order to avail input tax credit.

 Any reversal done due to ineligibility of credit or otherwise is to be carried out in table 4B of the main return (FORM GST RET-1).
3K Import of goods from SEZ units / developers on a Bill of Entry Goods received from SEZ units / developers on a Bill of Entry need to be reported here by the recipient.

 

These goods were subjected to IGST at the time of clearance into the DTA, and are hence not subjected to tax once again while filing this return.

 The SEZ unit making such supplies should not include such outward supplies in table 3B.

The reporting in table 3J and 3K shall be required till such time the data from ICEGATE and SEZ to GSTN system starts flowing online.
3L Missing documents on which credit has been claimed in T-2 /T-1 (for quarter) tax period and supplier has not reported the same till the filing of return for the current tax period The recipient needs to provide document-wise details of the supplies for which credit has been claimed but the details of supplies are yet to be uploaded by the supplier(s) concerned as detailed below:

 

(i) Where the supplier has not reported supplies even after a lapse of two tax periods in the case of monthly return filers and after a lapse of one tax period in the case of quarterly return filers.

 

(ii) Where the supplier uploads the invoice after the recipient reports the same in this table, then such credit needs to be reversed by the recipient in table 4B(3) of the main return (FORM GST RET-1) as this credit cannot be availed twice.
4 Details of the supplies made through e-commerce operators liable to collect tax under section 52 (out of any outward supplies declared in table 3) All supplies made through e-commerce operators liable to collect tax under section 52 shall be reported here at a consolidated-level in this table even though these supplies have already been reported in table 3.

What is the format of FORM GST ANX-1?

Form GST ANX-1 Format

Important pointers taxpayers should know while filing FORM GST ANX-1?

  • The supplier can upload documents continuously and on a real time basis
  • The documents issued during a particular tax period or for any other prior period, which have been uploaded by him in the current return filing period, shall be accounted towards the tax liability of the supplier in whichever return these details have been uploaded
  • The recipient will get input tax credit during a tax period based on documents uploaded by the supplier till the 10th of the month following the month for which the return is being filed for, or the10th of the month following the quarter in case of quarterly filers
  • The details of the documents uploaded by the supplier shall be available for the recipient in FORM GST ANX-2 to take action such as to accept, reject or to keep the document pending
  • Supplies which attract reverse charge need to be reported only by the recipient and not by the supplier in this annexure
  • The place of supply (POS) has to be reported for all supplies, and this requirement is mandatory. In the case of intra-State supplies, the POS will be the State in which the supplier is registered
  • The tax rate applicable on IGST supplies can be selected from a drop-down menu. For intra-State supplies, the tax rate will be half the tax rate of Integrated tax, to be split equally between Central tax and State / UT tax. Cess should be reported under the cess column if it is applicable
  • Wherever supplies are reported net of debit/credit notes, even if the values become negative in any particular cases, the same can be reported as it is
  • All suppliers with an annual aggregate turnover over Rs 5 crores, and in relation to imports, exports, and SEZ supplies have to upload HSN-level data., whereas other taxpayers (with annual aggregate turnover up to Rs 5 crores) can report HSN codes on an optional basis in the relevant table, or leave the same blank
  • The tax amount shall be computed by the system based on the taxable value and tax rate. The tax amount so computed cannot be edited, except by issuing debit/credit notes. However, the amount under Cess will be reported by the taxpayer himself
  • Any documents rejected by the recipient shall be conveyed to the supplier only after filing of the return by the recipient
  • The new return system provides for editing or amendment of details only from the supplier’s side. The recipient can reset, unlock or reject a document, however, the option to edit or amend a document shall be made available to the supplier only
  • The rejected documents can be edited before filing any subsequent return for any month or quarter by the supplier, and the credit of the same will be available to the recipient in the next open FORM GST ANX-2. The liability for such edited documents, however, will be accounted for in the tax period in which the supplier has uploaded the documents.
  • In situations where the particulars of the document may be correct but the document has been reported in the wrong table. A facility of shifting these documents to the appropriate table will be provided in such cases so that these rejected documents can be shifted instead of needing to amend them
  • A supplier can, at any time, amend documents relating to supplies made to persons such as composition taxpayers, ISD, UIN holders etc., and the same shall not be dependent upon the action taken (accept/reject/pending) by the recipient
  • Documents belonging to the previous period prior to the current return filing system can be uploaded in the relevant tables of this annexure. Only those details can be uploaded which have not been included in the erstwhile FORM GSTR-1

Shifting to New GST Return: How to Prepare for the Change

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The introduction of the new GST return system aimed at simplifying the tax filing regime for business owners across India. The current GST return filing will shift from GSTR-1 and GSTR-3B to a new single return RET-1/2/3 with an auto-filled ANX-1 (for tax liability) and ANX-2 (for Input Tax Credit). The new GST return filing mechanism will be focussed on allowing input tax credit based on the actual invoices uploaded by the supplier.

How to Prepare for the transition to the New GST Returns

If turnover is more than Rs 5 crore, a taxpayer will need to file the return (Normal Monthly) and make the tax payment on a monthly basis. If turnover is less than or equal to Rs 5 crore, a taxpayer will have the following three options to choose from:

·       Normal Quarterly

Return filing frequency will be on a quarterly basis. Tax payment needs to be done on a monthly basis. Applicable to any type of sales.

  • Sahaj: Return filing frequency will be on a quarterly basis. Tax payment needs to be done on a monthly basis. Applicable only to B2C suppliers.
  • Sugam: Return filing frequency will be on a quarterly basis. Tax payment needs to be done on a monthly basis. Applicable to B2B or B2C suppliers

·       Switching between return types

A taxpayer can switch only once in a financial year from Quarterly (Normal) to Sahaj or Sugam. The switch has to be initiated at the beginning of any quarter.

A taxpayer can switch only once in a financial year from Sugam to Sahaj. The switch has to be initiated at the beginning of any quarter. A taxpayer can switch more than once in a financial year from Sahaj to Quarterly (Normal) or Sugam.

The change has to be initiated at the beginning of any quarter. A taxpayer can switch more than once in a financial year from Sugam to Quarterly (Normal). The change has to be initiated at the beginning of any quarter.

·       Claim provisional ITC

A taxpayer who opts to file returns on a monthly or a quarterly (GST RET-1) basis would qualify to claim provisional Input Tax Credit (ITC) on missing invoices. However, the credit of missing invoices will not be applicable to a taxpayer who opts to file Sahaj (GST RET-2) or Sugam (GST RET-3).

·       Necessary actions on invoices

A taxpayer will need to accept, reject, or keep the supplier invoices as pending as necessary. A taxpayer has to take appropriate actions on the invoices uploaded to claim ITC between 11th and 20th of the month.

·       Modify ERP systems

The existing Enterprise Resource Planning (ERP) Systems will need to be modified in order to comply with the new GST returns. A few modifications include (not limited to): Bifurcation of capital goods and input services, Details related to Bill of Entry has to be included, Bifurcation of eligible and ineligible purchases and a single debit/credit note has to be linked with multiple invoices of a vendor.

·       Know other key changes

A taxpayer will need an HSN code for submitting details at a document level versus an individual HSN summary. B2B supplies which are accountable for reverse charge mechanism (RCM) need not be shown in the GST ANX-1 by the supplier. Nevertheless, the aggregate figure has to be shown in GST RET-1. The recipient of supplies has to declare the inward supplies which are liable for RCM in GST ANX-1.

·       File a NIL return

If a taxpayer is liable for a monthly return filing but hasn’t made any purchases or has no output tax liability and ITC to avail in any quarter, he or she will have to file one Nil return for the entire quarter versus monthly returns. The taxpayer needs to report Nil transactions through an SMS in the first and second month of the quarter.

FAQ on E-invoicing under New GST Returns

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GST Council introduced e-Invoicing from 1st January, 2020 on a voluntary basis, for reporting of business to business (B2B) invoices. The GST Council had approved the standard to be used for the e-Invoice in its 37th meeting that was held on the 20th of September, 2019 in Goa. Below are some FAQs on the e-Invoicing system under GST.

What is e-invoicing?

Electronic invoicing or E-invoicing is the new system through which business to business (B2B) transactions are authenticated electronically by GSTN for further use on the common GSTN portal. In simpler words, it is an invoice generated using a standardised format, where the electronic data of the invoice can be shared with others, thus ensuring interoperability of data.

Issue of e-invoices by the taxpayers registered under GST having a turnover above Rs 500 crores has been notified on 13th Dec 2019.

How does e-invoicing model work?

Today, a transaction between the supplier and recipient is done directly without the government having any proof of the exchange. Under the e-Invoicing model, businesses will continue to generate invoices on their respective ERPs just the way it was being done in the past. The only difference is that, the standard, schema and format for the generation of invoices will be specified, to ensure a level of standardisation and the machine-readability of these invoices.

With e-invoicing, the moment an invoice is made, it will be uploaded to GSTN portal where pre-validation will be done, and a unique number called IRN (Invoice Reference Number) will be issued which will then be digitally signed. Once IRN is issued, it will then generate a QR code, containing vital parameters of the e-Invoice. This will be returned to the same to the taxpayer who generated the document in the first place. The IRP will also send the signed e-Invoice to the recipient of the document, on the email ID provided in the e-Invoice.

What are the types of documents that are to be reported into the IRP?

The following documents will be covered under e-Invoicing for now:

  • Invoices by the Supplier
  • Credit Notes by the Supplier
  • Debit Notes by the Recipient
  • Any other document as required by law to be reported by the creator of the document

What is the workflow of e-invoice?

Step 1 – Generation of e-invoice:

The taxpayer will continue to generate invoices in the normal course of business. However, the reporting of these invoices electronically has criteria. It needs to be done as per the e-invoice schema along with mandatory parameters. The mandatory fields of an invoice for the supply of goods are listed below:

  • Invoice type
  • Code for invoice type
  • Invoice Number
  • Invoice Date
  • Supplier details like Name, GSTIN of Supplier, Supplier address (including place, pin code, state)
  • Details of the buyer such as name, GSTIN, state code, address, place, pin code, payee name, account number, payment mode and IFSC code
  • Dispatch details
  • Invoice item being dispatched
  • Total tax amount, paid amount and payment due
  • Tax scheme (whether GST, Excise Custom, VAT)
  • ‘Shipping To’ details like Name, GSTIN, address, pin code, state, supply type, transaction mode (whether regular, ‘bill to’ or ‘ship to’)
  • Details of goods like Sl. no., quantity, rate, assessable value, GST rate, amount of CGST/SGST/IGST, total invoice value, batch number/name

The seller has to ensure that his accounting/billing software is capable of generating a JSON of the final invoice. The seller can create a JSON following the e-invoice schema and mandatory parameters by using the following modes:

  • Accounting and billing system that offers this service
  • Utility to interact with either accounting/billing system, ERP, excel/word document or a mobile app
  • Offline Tool to generate e-invoice by keying-in invoice data

Step 2 – Generation of unique IRN:

The supplier has the option to generate ‘hash’ based on specific parameters usually three of them such as Supplier’s GSTIN, Supplier’s invoice number, Financial Year (YYYY-YY). The prescribed algorithm, such as SHA256 must be used for the hash generation. If the hash is validated, it would later become the Invoice Reference Number (IRN) of the e-invoice.

Step 3 – Uploading the JSON:

The following modes may be used to upload the JSON of the final invoice:

  • Directly on the IRP
  • Through GST Suvidha Provider (GSP)
  • Third-party provided apps (including through API)
  • The supplier can also upload the hash along with the JSON onto the IRP, if generated by him

Step 4 – Hash generation/validation:

Hash will have to be generated by the IRP in respect of the invoices uploaded without the hash. In such a case, the hash generated by the IRP would become the IRN. Where the supplier has also uploaded hash, a de-duplication check will be performed. It is done by validating the hash/IRN against the Central Registry of GST System to ensure that the IRN is unique. Once validated, the hash/IRN is stored in the Central Registry. IRP will then generate a QR Code and digitally sign the invoice and make it available to the supplier. The IRP also sends the e-invoice via e-mail mentioned on the invoice to the buyer and seller.

Source: last FAQ doc released by GSTN

How will the system of e-invoicing be integrated with GST Returns?

An e-Invoice will be uploaded into the relevant GST return only once it has been validated and registered by the invoice registration system. After the validation has been done, it will be visible to the recipient for viewing and taking action (in the new return system).

The main aim of the tax department is to enable the pre-population of GST returns, which will reduce reconciliation-related problems. Once e-Invoicing has been implemented, the data in the invoices can be pre-populated into the relevant tables of the tax returns without the need for fresh data entry.

What data will be included in an e-invoice?

As per the draft format generated by the GSTN, an e-Invoice will contain the following parts-

  • E-invoice schema: This part will consist of the technical field name and the description of each field. It will also specify if a field is mandatory or not, and has a few sample values along with explanatory notes
  • Masters: Masters will specify the set of inputs for certain fields, that are pre-defined by GSTN itself. It includes fields like UQC, State Code, invoice type, supply type, etc
  • e-Invoice template: The template is as per the GST rules and enables the reader to correlate the terms used in other sheets. The mandatory fields are marked in green and optional fields are marked in yellow

What are the benefits of e-invoicing?

  • One-time reporting of B2B invoices while generation, which reduces reporting in multiple formats
  • Sales and Purchase Registers can be generated from this data, and GST returns can be kept ready for filing under the new return system
  • E-way bills can also be generated using e-Invoice data
  • There is minimal need for data reconciliation between the books and GST returns filed
  • Real-time tracking of invoices prepared by a supplier can be enabled, along with the faster availability of input tax credit. It will also reduce input tax credit verification issues
  • Automation of the tax-filing process
  • Reduction in the number of frauds as the tax authorities will also have access to data in real-time
  • Elimination of fake GST invoices getting generated

Difference between Old Vs New GST Return System

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Introduction

The Indian government aimed at introducing GST to streamline the taxation policies even further. Under GST scheme, businesses followed the rule of ‘One Nation, One Tax’ which helped several taxpayers stay compliant seamlessly. However, several entrepreneurs found GST a bit complicated with numerous forms which are to be filed. Thus, to make the taxation system more simplified, the government announced the launch of GST 2.0 aka New Return Filing. The objective of the New Simplified GST Returns is to completely knock off the tax evasion pan India so that the transparency and equality can be attained under the indirect tax mechanism.

Let’s look at how different GST 2.0 is from the old return filing mechanism and how it will benefit the taxpayers.

Under the old return filing system

GSTR-1 return should be filed for reporting outward supplies and declaring tax liability on the same. Input Tax Credit (ITC) on imports has to be claimed in GSTR-3B under eligible ITC.

The taxpayer has to file monthly GSTR-1 if his annual turnover is more than Rs.1.5 crore. Otherwise, the taxpayer can file a quarterly GSTR-1.
This return includes/developers on a bill of entry

S. no Particulars
1 Supplies made to registered persons other than reverse charge mechanism (RCM) supplies and supplies through e-commerce operator
2 Supplies made under reverse charge mechanism
3 Supplies made through e-commerce operator
4 Interstate supplies to unregistered persons where invoice value is more than Rs.2.5 lakh
5 Zero rated supplies and deemed exports
6 Nil rated, exempted and non-GST outward supplies
7 Amendments to taxable outward supply
8 Advances received/adjusted during the tax period
9 HSN-wise summary of outward supplies
10 Documents issued during the tax period

Under the new return filing system

GST ANX-1 should be filed for reporting sales and declaring tax liability on the sales. Imports are also to be reported in GST ANX-1 and ITC on imports will be auto-populated in GST RET-1.
In the new return system, taxpayers are categorised into large taxpayer (whose annual turnover is more than Rs.5 crore) and the small taxpayer (whose annual turnover is up to Rs.5 crore). A large taxpayer has to file monthly GST ANX-1, whereas the small taxpayer can file his GST ANX-1 monthly or quarterly at his option.

This return includes

S No Particulars
1 Supplies made to consumers and unregistered persons
2 Supplies made to registered persons (Other than RCM supplies)
3 Exports with/without payment of tax
4 Supplies to SEZ units/developers with/ without payment of tax
5 Deemed exports
6 Inward supplies attracting reverse charge
7 Import of goods/services
8 Import of goods from SEZ units/developers on a bill of entry
9 Missing invoices which are to be uploaded by recipients
10 Details of the supplies made through e-commerce operators
11 Amendments to various supplies

Comparison – old vs new GST return system

The form GST ANX-1 under the new return system is similar to GSTR-1 under the old return system. There are some changes under the new return system when compared to old return system. Some of them are

  • Reporting of Supplies Under RCM

In the current filing system, invoice details can be reported while filing GSTR 1 form but can be viewed afterwards in GSTR-2A. In the new filing system, filing and viewing go simultaneously so that instant action can be taken on that.

  • HSN Summary Reporting

Under the old return system, the HSN code summary needs to be reported separately. But in the new return system, the supplier has to report the HSN codes at the invoice level (based on his turnover). In this way, the taxpayer will get the HSN data via his GST ANX-2 wherever the supplier was required to declare HSN.

  • Reporting of Imports

Under the old return filing system, ITC on imports alone has to be reported in GSTR-3B. However, under the new return filing system, the taxpayer has to report imports of goods and services in GST ANX-1.

  • Tax Payment

In the current system, Full Tax liability must be paid for a tax period while filing monthly return GSTR-3B. In the new system, complete Tax liability must be paid for a tax period in monthly PMT-08, regardless of monthly or quarterly filing of GST returns.

  • Reporting of Documents Issued

Under the new return system, there is no requirement for reporting of documents (along with serial numbers) like invoices, debit/ credit notes, receipt/ payment/ refund vouchers, delivery challans which were issued during the tax period.

GST Return Filing Date for March-May Extended till June Amid Corona Virus

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GST_Return_Filling_Date

The government on March 24 announced extension of the last date for filing GSTR-3B for Goods and Services Tax (GST) for March, April and May to June 30, amid the Corona Virus chaos. “Others can file returns due in March, April and May 2020 by last week of June 2020 but the same would attract a reduced rate of interest at 9 percent per annum from 15 days after due date (current interest rate is 18 % per annum),” she said.

Bigger companies, the FM said, would have to pay only interest but no late fee or penalty will be imposed. “No late fee and penalty to be charged, if complied with before or till 30th June 2020,” she said.

In a press conference, Sitharaman announced some crucial measures to fight the economic fallout of Covid-19 pandemic. The government also extended the date till the last week of June, for opting for composition scheme. “Further, the last date for making payments for the quarter ending 31st March, 2020 and filing of return for 2019-20 by the composition dealers will be extended till the last week of June, 2020,” the FM said.

The date for filing GST annual returns of 2018-19, which was due on March 31, has been extended till the last week of June. “Due date for issue of notice, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents, time limit for any compliance under the GST laws where the time limit is expiring between 20th March 2020 to 29th June 2020 shall be extended to 30th June 2020,” the government said.

Sitharaman also extended the deadline for filing FY19 income tax (I-T) returns till June 30. ATM charges have been scrapped till June 30.

FORM RET 1 – Quarterly GST Return

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In the 31st meeting of GST Council, it was recommended to introduce and implement a new GST return system. One of the key aspects of the new GST return system is the introduction of different types of return forms considering the business profile. Quarterly return form RET-1 is one such return type designed for small taxpayers.

In this blog, let us understand the applicability, return filing period and format of quarterly return form RET-1

What is quarterly return form RET-1?

Quarterly Return form RET-1 is a return type for small taxpayers whose aggregate turnover in the financial year does not exceed 5 Crores and their outward supplies consist of B2B B2C and all other types supplies such as exports, SEZ etc.

To put it in simple words, businesses opting quarterly return form RET-1 will be allowed to make all types of outward supplies such as supplies to end consumers, unregistered business, registered business, exports, SEZ etc.

Except for the periodicity of filing return, the form type, format and details required to be furnished are similar to monthly returns.

Periodicity of filing quarterly return form RET-1

The periodicity of filing quarterly return form RET-1 is similar to the Sahaj and Sugam. You need file the returns quarterly with a monthly payment of tax on a self-assessed basis. The due date to file a quarterly return in Form RET-1 is 25th of the subsequent month following the quarter-end.

The due date for filing Sugam GST returns is given below

Quarterly Return Form RET-1
Quarters Due Data
April -June 25th July
July – September 25th October
October- December 25th January
January-March 25th April

Due date for payment of tax

Though the return filing periodicity is quarterly, businesses opting quarterly RET-1 are required to make the monthly payment.

The tax payment is on the self-assessed basis and the payment declaration challan known as Form GST PMT -08 should be used to remit the payment. The due date to remit the monthly payment is 20th of the subsequent month.

Types of supplies allowed under quarterly GST Return Form RET-1

Business opting quarterly return Form RET-1 will be allowed to make all types of supplies as mentioned in the below table.

Type of Outward Supplies Allowed (Yes) / Disallowed (No)
B2B transactions Yes
B2C transactions Yes
Exports Yes
SEZ units/developers Yes
Deemed Exports Yes
Outward Supply to e-Commerce Operators Yes
Nil Rated, Exempted or Non – GST Yes
Inward supplies attracting RCM Yes
Import of goods/services Yes
Import of Goods from SEZ Yes

 

Difference between Sahaj, Sugam and quarterly return form RET-1

All these returns are quarterly and designed for small taxpayers. The first difference, the obvious one is that each of these returns differs basis nature of supplies it supports. Sahaj supports only B2C supplies, Sugam supports B2C as well as B2B supplies and quarterly return form RET-1 support all types of supplies.

Second, the most important one, the facility of availing ITC on the missing invoice (invoices not uploaded by the supplier) and reporting of such bills is allowed for businesses opting monthly return and quarterly return in form RET-1. In other words, businesses who have opted Sahaj return and Sugam return will not be allowed avail ITC on the missing invoice.

Quarterly return form RET-1 return filing process

The quarterly return form RET-1 consist of one main return, to be filed on a quarterly basis supported by two main annexures. Form GST RET-1 is the return form to be used to file Sugam returns supported by the annexures.

The details of return forms and annexures to be used for filling Sugam return is given below.

Form Description Action
Form GST ANX- I Form GST ANX-1 is an annexure of outward supplies and inward supplies attracting reverse charge. You need to upload details of outward supplies along with purchases attracting reverse charge in FORM GST ANX – 1
Form GST ANX – II It’s an annexure containing details of auto-drafted inward supplies.

 

 

 Form GST ANX-II is an auto-populated annexure containing the details document uploaded by your supplier on a real-time basis.

Here you can either accept, modify or reject the invoice uploaded by your counterpart (seller) for confirming the ITC.
Form RET-1 Form RET-1 is a quarterly return applicable for business opting Sugam returns (Up to 5 Crores) Business need to file the monthly return by 25th of the subsequent month following the quarter-end

Sugam GST Returns – Form GST RET-3

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The new GST return framework has introduced a set of return forms specially designed for small taxpayers. Among the new returns available, Sugam return form is once such GST return aims to simplify the GST complexities.

In this blog, let us discuss and understand Sugam returns, return filing periodicity, tax payment, format and filing process.

What is Sugam GST returns?

Sugam is a new GST return for small taxpayers whose aggregate turnover in the financial year does not exceed 5 Crores and their outward supplies consist of B2B as well as B2C. Businesses opting Sugam GST returns will be allowed to make outward supplies to end consumers, unregistered business and business registered under GST.

Applicability of Sugam return

To opt Sugam return under GST, you need to satisfy the below two conditions.

  • The aggregate turnover in the previous financial years is up to 5 crores
  • You are engaged in making B2B supplies (Unregistered Business and end consumers) and B2B supplies (supplies to business registered under GST)

Periodicity of filing Sugam return

The periodicity of Sugam return filing is on a quarterly basis with a monthly payment of tax. For businesses opting Sugam GST return, the due date to file a quarterly return is 25th of the subsequent month following the quarter-end.

The due date for filing Sugam GST returns is given below

Due Date to File Sugam GST Return
Filing Period Due Data
April -June 25th July
July – September 25th October
October- December 25th January
January-March 25th April

Due date for payment of tax

Though the return filing periodicity is quarterly, businesses opting Sugam return are required to make the monthly payment.

The tax payment is on the self-assessed basis and the payment declaration challan known as Form GST PMT -08 should be used to remit the payment. The due date to remit the monthly payment is 20th of the subsequent month.

Like Sahaj return, the self-assessed payment is required only for 1st and 2nd month of the and for 3rd month, payment with all adjustments should be made along with the returns.

Let’s understand with an example.

For April to June quarter, the taxpayer needs to remit the tax of April by 20th May and May’s tax by 20th June. For June, you need to pay tax along with first 2 months adjustment (if any) with main Sugam returns.

Difference between Sahaj and Sugam GST returns

While both the returns are quarterly and applicable for small taxpayers, basis the supplies nature it supports, these 2 differs. Sahaj as a small taxpayer return supports only B2C supplies whereas Sugam supports B2C as well as B2B supplies.

In other words, Sahaj return is suitable for businesses who are engaged in making only B2C outward supplies. On the other hand, Sugam is suitable for a business who make both B2C as well as B2B supplies.

Types of supplies allowed under Sugam returns

The following table gives the list of supplies allowed and disallowed under Sugam GST returns.

Type of Outward Supplies Allowed (Yes) / Disallowed (No)
B2B transactions Yes
B2C transactions Yes
Exports No
SEZ units/developers No
Deemed Exports No
Outward Supply to e-Commerce Operators No
Nil Rated, Exempted or Non – GST Yes
Inward supplies attracting RCM Yes
Import of goods/services No
Import of Goods from SEZ No

Sugam return filing process

The Sugam GST returns consist of one main return, to be filed on a quarterly basis supported by two main annexures. Form GST RET-3 is the return form to be used to file Sugam returns supported by the annexures.

The details of return forms and annexures to be used for filling Sugam return is given below.

Form Description Action
Form GST ANX- I Form GST ANX-1 is an annexure of outward supplies and inward supplies attracting reverse charge. You need to upload details of outward supplies along with purchases attracting reverse charge in FORM GST ANX – 1
Form GST ANX – II It’s an annexure containing details of auto-drafted inward supplies.

 

 

 Form GST ANX-II is an auto-populated annexure containing the details document uploaded by your supplier on a real-time basis.

Here you can either accept, modify or reject the invoice uploaded by your counterpart (seller) for confirming the ITC.
Form RET-3 Form RET-3 is a quarterly return applicable for business opting Sugam returns (Up to 5 Crores) Business need to file the monthly return by 25th of the subsequent month following the quarter-end

 

The key point which businesses should take note is that the option to avail input tax credit on the missing invoices (invoices not uploaded by the supplier) is not available in Sugam returns. This implies that businesses will be allowed to avail the ITC to the extent of the invoices auto-populated in Form GST ANX-II.

However, the option to claim ITC on a provisional basis on the missing invoice is available for taxpayers opting monthly return and quarterly normal return using Form GST RET-1.

Format of Sugam returns – Form GST RET – 03

The Sugam form RET – 03 contains the details of supplies (both inward and outward) declared through Form GST ANX – 1 and GST ANX – 2. This is the main return form which auto-populates the information of supplies from the first two annexure forms. The supplier (taxpayer) needs to complete the remaining details and calculate their tax liability.

To summarize the Sugam return format (Form GST RET-3), it contains the summary level details of outward supplies, inward supplies and adjustments related to it. The Sugam return format consists of the following details:

  • Outward supplies
  • Inward supplies attracting reverse charge
  • Debit/credit notes
  • Advanced received
  • Total tax liability
  • Inward supplies for claiming ITC
  • Net ITC available
  • Amount of TDS/TCS credit received (Transition / Switchover)
  • Interest and late fee (if any) and
  • Final payable tax along with details of tax payment and
  • Refund claimed from the ledger.

Sahaj GST Returns – Form GST RET-2

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By Introducing different return forms for different types of business, the new GST return system aims to simplify the filing process for business registered under GST. Sahaj GST return is one such form among the several types of new GST returns to be introduced.

In this blog, let us understand all about the Sahaj GST returns right from its applicability, periodicity of return filing, payment of tax and return filing process.

What is Sahaj return in GST?

Sahaj is a type of GST returns for small taxpayers whose aggregate turnover in the financial year does not exceed 5 Crores and their outward supplies are of B2C nature i.e. outward supplies are made to end consumers and unregistered business.

Applicability of Sahaj return

The criteria to decide on the applicability of the return depends on the aggregate turnover and types of outward supplies you make.

  • The aggregate turnover in the previous financial years is up to 5 crores
  • You are engaged in making only B2B supplies (Unregistered Business and end consumers)

If you satisfy the above two conditions, you will have an option to file Sahaj GST returns.

Periodicity of filing Sahaj return

The periodicity of Sahaj return filing is on a quarterly basis. However, the payment of tax should be made on a monthly basis.

For businesses opting Sahaj GST return, the due date to file a quarterly return is 25th of the subsequent month following the quarter-end. Following are due date for filing Sahaj returns.

Due Date to File Sahaj GST Return
Quarters Due Data
April -June 25th July
July – September 25th October
October- December 25th January
January-March 25th April

Due date for payment of tax

Taxpayers opting Sahaj return are required to make the monthly payment though the return filing periodicity is quarterly. The payment of tax is on the self-assessed basis and should be made through a payment declaration form known as Form GST PMT-08. The due date for monthly payment of tax for Sahaj return is 20th of succeeding month.

The self-assessed payment is required only for 1st and 2nd month of the quarter and for 3rd month, payment along with all adjustments should be made along with the returns.

Sahaj return filing process

The Sahaj GST return consist of one main return, to be filed on a quarterly basis supported by two main annexures. Form GST RET-2 is the return form to be used to file Sahaj returns supported by the annexures.

The details of return forms and annexures to be used for filling Sahaj return is given below.

Form Description Action
Form GST ANX- I Form GST ANX-1 is an annexure of outward supplies and inward supplies attracting reverse charge. You need to upload details of outward supplies along with purchases attracting reverse charge in FORM GST ANX – 1
Form GST ANX – II It’s an annexure containing details of auto-drafted inward supplies.

 

 

 Form GST ANX-II is an auto-populated annexure containing the details document uploaded by your supplier on a real-time basis.

Here you can either accept, modify or reject the invoice uploaded by your counterpart (seller) for confirming the ITC.
Form RET-2 Form RET-02 is a quarterly return applicable for business opting Sahaj returns (Up to 5 Crores) Business need to file the monthly return by 25th of the subsequent month following the quarter-end