WFYI logo

Comprehensive Guide to Filing FORM GST RET-1

This article explains the FORM GST RET-1, a simplified Goods and Services Tax return introduced by the GST Council to replace the previous GSTR-3B and GSTR-1. It details the structure of RET-1 along with its two annexures, ANX-1 and ANX-2, which streamline the reporting of outward and inward supplies. The guide also covers the benefits of this simplified system, filing frequencies based on taxpayer turnover, and a comprehensive breakdown of each section within FORM GST RET-1 and its annexures, highlighting auto-population features and required data inputs.

📖 3 min read read🏷️ GST Returns

The GST Council introduced a new return system in late 2018 to streamline and simplify the tax filing process. A prototype and trial version of this system became available in July 2019. Currently, businesses in India must submit two monthly returns: GSTR-3B for outward and inward supplies and tax payments, and GSTR-1 for outward supply details. Under the revised framework, taxpayers will file a single primary return, FORM GST RET-1, supported by two annexures: FORM GST ANX-1 and FORM GST ANX-2. FORM GST ANX-1 will capture details of outward supplies, inward supplies subject to reverse charge, and imported goods and services. These details, excluding B2C transactions, will be reported at an invoice level in real-time. FORM GST ANX-2 will list inward supply details, enabling recipients to accept, reject, or mark documents for future action. An important update on March 14, 2020, stated that the new GST return system would commence in October 2020. Until September 2020, the existing filing system (GSTR-1, 2A, & 3B) was to remain in effect, pending CBIC notification.

The Necessity and Benefits of Simplified GST Returns

The new simplified GST return mechanism is built upon the principle of a single consolidated return, with filing frequency determined by an entity's annual turnover. The introduction of these simplified returns offers several advantages:

  • Profile-Based Forms: GST encompasses numerous types of supplies, but most dealers handle only a select few. A profiling questionnaire will customize the GST return format, displaying only fields relevant to the taxpayer's specific activities.
  • Continuous Invoice Uploads: Suppliers can upload invoices on a continuous, real-time basis, making them immediately available for recipients to review and act upon.
  • Reduced Compliance Costs: Streamlined forms and a simpler filing procedure are expected to lower the overall costs associated with GST compliance.
  • Amendment Options: Taxpayers will have the ability to amend filed returns, with provisions to submit up to two amendment returns for each tax period.

Filing Frequency for FORM GST RET-1

Taxpayers who conduct B2C or B2B supplies, inward supplies subject to the reverse charge mechanism, NIL-rated, zero-rated, or e-commerce operator facilitated supplies are eligible to file GST RET-1. Large taxpayers, defined as those with a turnover exceeding Rs 5 crore in the preceding financial year, are required to file this return monthly. Conversely, small taxpayers, with a turnover up to Rs 5 crore in the previous financial year, have the option to file the return on a quarterly basis.

Components of FORM GST RET-1

The new GST RET-1 form consists of nine distinct sections:

1. GSTIN: Taxpayers must enter their Goods and Services Tax Identification Number.

2. Basic Details: Information such as the trade name and legal name will automatically populate based on the provided GSTIN.

3. Summary of Outward Supplies, Inward Supplies Subject to Reverse Charge, Debit/Credit Notes, and Tax Liability: This section requires comprehensive details of all outward supplies made to consumers and unregistered individuals. It also covers inward supplies where the reverse charge mechanism applies. Data in this table is automatically populated from Annexure 1. This summary is organized into five subsections:

No.DescriptionDetails
ADetails of outward suppliesThis includes: * Taxable supplies to consumers and unregistered persons, auto-populated from Table 3A of FORM GST ANX-1. * Taxable supplies to registered persons (excluding reverse charge), auto-populated from Table 3B of FORM GST ANX-1. * Exports (with or without tax payment), auto-populated from Tables 3C and 3D of FORM GST ANX-1. * Supplies to SEZ units/developers (with or without tax payment), auto-populated from Tables 3E and 3F of FORM GST ANX-1. * Supplies to registered persons treated as deemed exports, auto-populated from Table 3G of FORM GST ANX-1. * Liabilities from periods preceding the current return system and any other liabilities.
BDetails of inward supplies attracting reverse chargeThis includes: * Inward supplies attracting reverse charge, auto-populated from Table 3H of Form GST ANX-1. * Import of services, auto-populated from Table 3I of Form GST ANX-1. Note: All values are net of debit/credit notes and advances where tax was previously paid.
CDetails of debit/credit notes issued, advances received/adjusted, and other reductions in liabilitiesThis includes: * Debit/Credit notes issued for non-reverse charge supplies during the period. * Advances received for services (after accounting for refund vouchers). * Adjustments made from previously reported advances. * Reduction in tax liability due to a change from composition to normal levy.
DDetails of supplies having no liabilityThis includes: * GST-covered supplies that are tax-exempt. * NIL-rated supplies. * Supplies not classified elsewhere. * Outward supplies subject to reverse charge. * Supplies by SEZ/developers to DTA on a bill of entry. * Non-GST supplies. * Supplies not specified in Schedule III.
ETotal value and tax liabilityThe total value of supplies is calculated as A+B+C+D, and the corresponding tax liability is auto-populated.

4. Summary of Inward Supplies for Claiming ITC: This section outlines details of all purchases necessary for claiming Input Tax Credit (ITC). Information is automatically populated from Annexure 1 and Annexure 2. This summary is divided into five subsections:

No.DescriptionDetails
ADetails of ITC based on auto-population from FORM GST ANX-1 and action taken in FORM GST ANX-2 and other claimsThis includes: * Eligible credit not previously claimed in Form GSTR-3B. * Provisional credit for documents not uploaded by the supplier. Auto-populated from GST ANX-1: * Credit amount from accepted and rejected documents. * Credit amount from pending documents. * Credit distributed by ISD and reported in FORM GSTR-6. Auto-populated from GST ANX-1: * Credit on inward supplies attracting reverse charge (Table 3H of FORM GST ANX-1). * Credit on import of services (Table 3I of FORM GST ANX-1). * Credit on import of goods from overseas (Table 3J of FORM GST ANX-1). * Credit on imports of goods from SEZ units/developers (Table 3K of FORM GST ANX-1).
BDetails of reversals of creditThis includes: * Ineligible credit. * Reversal of ITC under Rules 37, 39, 42, and 43. * Supplies where documents were later uploaded by the supplier but credit was provisionally claimed by the recipient. * Documents rejected by the recipient after acceptance and filing by the supplier. * Any other reversals.
CNet input tax credit available after reversalThis is the difference between amounts in A and B above.
DITC declared during the first two months of the quarterThis will be auto-populated from Form GST PMT-08 for quarterly filers during the first two months.
ENet ITC availableThis is the difference between C and D, which will then be credited to the electronic credit ledger for use.

5. Amount of TDS and TCS Credit Received in Electronic Cash Ledger: Amounts are credited to the electronic cash ledger based on returns filed by TDS deductors (Form GSTR-7) and TCS collectors (Form GSTR-8).

6. Interest and Late Fee Liability Details: The system automatically calculates interest and late filing fees for delayed returns. Other interest liabilities must be self-assessed by the taxpayer.

7. Payment of Tax: Taxpayers must pay their tax liability in cash after utilizing available ITC. However, any interest or penalty payments must be made strictly in cash.

8. Refund Claimed from Electronic Cash Ledger: This table is automatically populated from the electronic cash ledger.

9. Verification: Taxpayers must verify the accuracy of all provided information by checking a box and signing the return before filing.

Annexures Supporting FORM GST RET-1

Annexure 1 is structured into three sections:

  1. Basic Details: GSTIN, trade name, legal name, and other fundamental information are auto-populated.

  2. Details of Outward Supplies, Inward Supplies Subject to Reverse Charge, and Import of Goods and Services: This section comprises Tables 3A to 3L, covering a range of details such as:

  • Supplies made to consumers, registered, and unregistered individuals.
  • Exports (with or without tax payment).
  • Supplies to Special Economic Zone (SEZ) units (with or without tax payment).
  • Deemed exports.
  • Inward supplies attracting reverse charge.
  • Import of services.
  • Import of goods, among others.
  1. Details of Supplies Made Through E-commerce Operators Liable to Collect Tax Under Section 52: All supplies transacted via e-commerce operators responsible for tax collection at source must be reported here.

Annexure 2 is divided into four parts:

  1. Basic Details: GSTIN, trade name, legal name, and other core information are auto-populated.

  2. Details of Inward Supplies Received from a Registered Person, Imports, and Supplies from SEZ Units/Developers on Bill of Entry: This section details various inward supplies, including those from registered persons, imported goods from SEZ, and imported goods from overseas via bill of entry.

  3. Summary of Input Tax Credit: This provides an overview of all credits accepted, rejected, or awaiting action on the GST Portal.

  4. ISD Credits Received: Details of all credits claimed from an Input Service Distributor (ISD) are reported here on a GSTIN-wise basis.

The new GST return framework will be introduced in stages. A trial period from July to September 2019 was designed to help taxpayers become familiar with the system, facilitating a smooth transition. The new filing system began its phased implementation in October 2019. Eventually, FORM GST RET-1 was slated to replace GSTR 3B for all taxpayers starting January 2020.

Frequently Asked Questions

What is the Goods and Services Tax (GST) in India?
GST is an indirect tax implemented in India on the supply of goods and services. It is a comprehensive, multi-stage, destination-based tax that has replaced many indirect taxes previously levied by the central and state governments.
Who is required to register for GST?
Businesses involved in the supply of goods and services are generally required to register for GST if their aggregate turnover exceeds a specified threshold limit (which varies for goods and services, and for different states). Certain businesses, like those involved in inter-state supplies or e-commerce operations, must register regardless of their turnover.
What is Input Tax Credit (ITC) under GST?
Input Tax Credit (ITC) allows businesses to reduce the tax they pay on their output by the tax they have already paid on their inputs. This mechanism prevents the cascading effect of taxes, ensuring that tax is levied only on the value addition at each stage of the supply chain.
What are the different types of GST?
In India, there are four main types of GST: Central GST (CGST) levied by the Central Government on intra-state supplies, State GST (SGST) levied by State Governments on intra-state supplies, Integrated GST (IGST) levied by the Central Government on inter-state supplies and imports, and Union Territory GST (UTGST) levied by Union Territories on intra-union territory supplies.
What are the consequences of late filing of GST returns?
Late filing of GST returns can lead to penalties, including a late fee charged per day of delay for each type of return. Additionally, interest may be levied on any unpaid tax liability, and businesses may be unable to claim Input Tax Credit until the returns are filed.

Share Article

Browse by Topics

Related Articles

Popular Articles