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New GST Returns

Last updated on 31 October, 2019

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Latest Updates as per the 31st GST meeting
  • During the 31st GST meeting, the GST Council decided to institute a new return filing system to help ease the burden of filing returns for taxpayers. In an attempt to help taxpayers switch to this new filing system, the GST Council has initiated a transition plan.
  • As of May 2019, a prototype of the offline tool used to file returns was shared on the online portal. The offline tool shares the same look and feel as the online portal.
  • The new returns have 5 main components: one main return and four annexures (Form GST ANX-1, Form GST ANX-2, Form GST ANX-1A, and PMT-08).
  • From July 2019, taxpayers will be allowed to upload their invoices using the offline tool for Form GST ANX-1 on a trial basis. They will also be able to view and download their invoices for inward supplies using the Form GST ANX-2 offline tool on a trial basis. From August 2019, taxpayers can import their purchase register using the offline tool and match it with their downloaded inward supply invoices to find mismatches.
  • The new annexures ANX-1 and ANX-2, will be made available for trial between the months of July and September, 2019. During this time, taxpayers must continue to file their outward supply details in Form GSTR-1 and their returns in Form GSTR-3B.
  • From October of 2019, Form GSTR-1 will be replaced with Form GST ANX-1. This will be made compulsory for large taxpayers (those with an aggregate annual turnover in the previous financial year of more than Rs. 5 crore) in October 2019, and for small taxpayers (those with an aggregate annual turnover in the previous financial year of up to Rs. 5 crore) in January 2020. Both large and small taxpayers may begin uploading invoices and other documents in Form GST ANX-1 on a continuous basis from October 2019. This is not the case for Form GST ANX-2, however, as this form can only be viewed during this period.
  • For the months of October and November 2019, large taxpayers are to continue filing Form GSTR-3B on a monthly basis. They must file their first Form GSTR-1 for the month of December 2019, by the 20th of January, 2020. Small taxpayers, on the other hand, must stop filing Form GSTR-3B and start filing Form GST PMT-08 in October 2019. They can start filing their first Form GSTR-1 for the quarter of October to December 2019, from the 20th of January, 2020.
  • Starting from January 2020, all taxpayers must begin filing Form GST RET-01. Form GSTR-3B must be completely phased out.

New GST returns

In an effort to simplify the filing process and increase tax compliance, the GST Council has approved a new return filing process. This filing process is expected to come into effect in six months. Here’s what you need to know about the new GST returns. 


New Returns For Registered Taxpayers

New Returns For Composition Dealers

New Returns For Small Taxpayers

Uploading Invoices

Invoicing for B2B Dealers

Process of Tax Recovery

Information in the Return

How will the transition to the new filing work?

The transition will be done in three stages:

Stage I

In this stage, there will be no change in the current filing system. The filing of GSTR3B and GSTR1 will continue. GSTR2 and GSTR3 will remain suspended. This stage will last until the new filing software is ready to use, which is expected to occur in six months. 

Stage II

When the new filing system is ready, it will allow you to upload invoice-wise data and also claim input tax credit on a self-declaration basis similar to the current GSTR3B filing process. During this stage, you will be able to see the credits available to you based on the invoices that your sellers have uploaded and the provisional credits that you can claim. This stage will last for six months to allow everyone to adjust to the new system.

Stage III

Six months after Stage II begins, provisional credit will end. The input tax credit that you can avail will then be limited to the invoices uploaded by your sellers. 

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