Common Questions About India's Updated GST Return System
This article addresses frequently asked questions regarding India's updated Goods and Services Tax (GST) return system. It explains the transition from previous forms, outlines the forms applicable to various taxpayer categories, and clarifies procedures for filing, amendments, and recipient actions. The content aims to simplify understanding of the new compliance framework and its associated processes.
Common Questions About India's Updated GST Return System
India's Goods and Services Tax (GST) regime is constantly evolving, including its return filing and compliance mechanisms. A revised GST return system has been introduced to replace the initial GSTR-1 and GSTR-3B filings specifically for regular taxpayers. Other taxpayer categories, such as non-resident taxable persons, casual taxable persons, composition dealers, and input service distributors, will maintain their existing return filing procedures. The primary goal of this new system is to simplify compliance and reduce manual effort during the filing process. This updated framework introduces new forms, terminology, concepts, and procedures, including forms like RET-1, RET-2 SAHAJ, RET-3 SUGAM, ANX-1, and ANX-2, along with their associated amendment returns.
Frequently Asked Questions
Availability of Forms ANX-1 and ANX-2
Initially, forms ANX-1 and ANX-2 were released for trial use by taxpayers in July 2019. However, the 37th GST Council Meeting on September 20, 2019, postponed the full implementation of the new GST return system for all taxpayers until April 2020. While suppliers could continuously upload invoices to ANX-1, and recipients could view these in ANX-2, no further actions were permitted until December 2019.
Types of Quarterly Returns for Small Taxpayers
Small taxpayers, defined as those with an aggregate turnover of up to Rs. 5 crore in the preceding financial year, have the option to file their returns quarterly. They can choose between Sahaj, Sugam, or a Quarterly (Normal) return.
Changing the Filing Period
Taxpayers are permitted to change their return filing frequency (from quarterly to monthly or vice versa) only once during a financial year. This change must be made when filing their very first return for that particular financial year.
Recipient Actions on Supplier Documents
Suppliers are required to upload document details by the 10th of the following month for monthly filers, or by the 10th of the month after the quarter for quarterly filers. Up until this deadline, the recipient can either accept or reset (unlock) a document. After the 10th, recipients gain additional options to accept, reject, or mark documents as pending.
Supplier Notification for Rejected Documents
Suppliers will only be informed about rejected documents after the recipient has officially filed their return, which includes those rejections.
Correcting Wrong Table Entries in ANX-1
If a supplier incorrectly enters document details into the wrong table in Form ANX-1, a facility will be provided to easily shift these documents to the correct table, rather than requiring individual amendments, once the recipient rejects them.
Amending Documents Pending with Recipient
Suppliers cannot amend documents that are currently marked as pending by the recipient. For any amendments to be made by the supplier, the recipient must first reject the document.
Nil Return Filing via SMS
Form RET-1 can be filed through SMS exclusively for nil returns. This applies when no supplies have been made or received during the tax period.
Source of Auto-Populated Details in RET-1
The information automatically appearing in Form RET-1 is sourced from data previously declared and processed in the relevant Forms ANX-1 and ANX-2.
Purpose of Form ANX-1A
Form ANX-1A is specifically used for making amendments related to details that were uploaded in Form ANX-1 for previous tax periods.