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GSTN Unveils Interactive Prototype for Simplified GST Return Filing

The Goods and Services Tax Network (GSTN) has launched an interactive prototype for its simplified new GST return system, anticipated to fully roll out by October 2020. This demo allows taxpayers and stakeholders to familiarize themselves with the updated interface, which will replace existing GSTR-1 and GSTR-3B forms. The prototype, designed for feedback collection and user acclimation, demonstrates functionalities like invoice uploads and auto-population of inward supplies, though it does not save data or perform calculations.

📖 3 min read read🏷️ New GST Returns

The Goods and Services Tax Network (GSTN) has introduced an interactive prototype for its upcoming streamlined GST return filing system, often referred to as GST 2.0. This new system is slated for full implementation by October 2020, with the current GSTR-1, 2A, and 3B system remaining in place until September 2020. The prototype allows users to experience the new interface and functionalities, aiming to simplify the often complex process of GST compliance.

Understanding the New Return Prototype

GSTN's web-based prototype serves as an interactive demonstration of the "Offline Tools of New Return." This intuitive tool enables users to navigate different sections and test features such as uploading invoices, utilizing drop-down menus, and uploading purchase registers for reconciliation with system-generated inward supply records. It is designed to replace the existing GSTR-3B and GSTR-1 forms, offering a user-friendly preview before the official launch. Stakeholders are encouraged to provide feedback on this prototype.

Key Objectives of the Prototype

The introduction of this prototype aims to achieve several goals:

  • Gather user suggestions and valuable feedback.
  • Acclimate users to the functionalities of the new return system.
  • Facilitate the smooth deployment of a more straightforward GST return filing process.

Operational Mechanics of the New System

Under the revised GST return framework, standard taxpayers will be required to submit either Form GST RET-1 (Normal), Form GST RET-2 (Sahaj), or Form GST RET-3 (Sugam) on either a monthly or quarterly basis. These returns will necessitate the submission of an Annexure of Supplies (GST ANX-1), detailing all outward supplies, and an Annexure of Inward Supplies (GST ANX-2). Crucially, all information pertaining to inward supplies will be automatically populated from the GST ANX-1 previously filed by the respective supplier.

Important Information Regarding the Prototype

Users should be aware of the following aspects of the prototype:

  • As a demonstration version, any data entered will not be saved.
  • Its primary purpose is to provide a screen layout for familiarization, not a functional tool.
  • It includes a subset of screens that will be available in the actual Offline Tool upon its release on the GST portal.
  • Some sample data is pre-filled to aid user understanding and navigation.
  • The values input by a user within the prototype might not align with the calculated summaries displayed on summary screens.
  • The prototype does not perform arithmetic operations such as addition or subtraction.
  • Certain capabilities of the full real-time tool, such as saving data, uploading/downloading JSON to the GST portal, and error correction, are unavailable in this demo.

Providing Feedback and Accessing Resources

This interactive prototype offers businesses a practical opportunity to analyze the upcoming return filing system. Users can submit their feedback and suggestions via email to feedback.newreturn@gstn.org.in. Further details on how to use this prototype are available here.

Frequently Asked Questions

What is the Goods and Services Tax (GST) in India?
GST is a comprehensive indirect tax introduced in India on July 1, 2017, replacing multiple cascading taxes levied by the central and state governments. It is a value-added tax levied on most goods and services sold for domestic consumption, with the aim of creating a common national market.
Who is required to register for GST in India?
Businesses and individuals involved in the supply of goods or services are generally required to register for GST if their aggregate turnover exceeds a specified threshold limit (which varies based on state and type of supply). Mandatory registration also applies in certain cases, irrespective of turnover, such as for inter-state suppliers or e-commerce operators.
What are the different types of GST returns in India?
In India, various GST returns are filed depending on the taxpayer's category. Common returns include GSTR-1 for outward supplies, GSTR-3B for summary self-declared returns, and GSTR-9 for annual returns. Specific forms like GSTR-4, GSTR-5, GSTR-6, GSTR-7, and GSTR-8 exist for composition dealers, non-resident taxpayers, input service distributors, TDS deductors, and e-commerce operators, respectively.
Can I claim Input Tax Credit (ITC) on all my purchases under GST?
While ITC is a fundamental aspect of GST, allowing businesses to offset tax paid on inputs against output tax liability, it is not applicable to all purchases. Certain goods and services are 'blocked credits' under Section 17(5) of the CGST Act, meaning ITC cannot be claimed on them. Examples include motor vehicles for personal use, food and beverages, and club memberships, among others.
What are the consequences of non-compliance with GST regulations?
Non-compliance with GST regulations can lead to various penalties, including late fees for delayed return filing, interest on unpaid or short-paid tax, and fines for errors, fraud, or tax evasion. Additionally, non-compliant businesses may face legal actions, cancellation of registration, and reputational damage.

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