New Simplified GST Return Filing | GST Council approves new model | Tally Solutions

New Simplified GST Return Filing Model


In the recently held 28th GST Council meeting, certain key changes were introduced with regards to the existing return filing model. The GST Council has approved the basic principles of the new and simplified GST returns and has provided the same on the public domain for feedback & recommendations. As per the press release by the Finance Secretary, the new simplified GST return will be implemented from January 2019.

Transition to New GST Return Filing Model

Phase I

This phase is currently going on and will continue till the proposed returns are implemented:

  • a. GSTR 1 – Monthly Returns for those whose turnover is more than INR 1.5 Crores
  • b. GSTR 1 – Quarterly Returns for those whose turnover is less than INR 1.5 Crores
  • c. GSTR 3B – Monthly Summary Return to be submitted by 20th of the next month

Phase II

During this stage, the dealer will be constantly fed with information about the existing gap between ITC available, and provisional ITC being claimed.

  • a. Invoice-wise details of all outward supplies to be uploaded
  • b. ITC to be calculated automatically and allocated provisionallys
  • c. Final ITC to be allotted based on self-declaration (similar to GSTR 3B of Phase I)

Phase III

During this stage, the facility of provisional credit will get withdrawn and input tax credit will only be limited to the invoices uploaded by the sellers from whom the dealer has purchased goods.

  • a. Invoice-wise details of all outward supplies to be uploaded
  • b. Final ITC to be calculated automatically and allocated provisionally
  • c. No self-declaration to be there

GST Returns – Current vs. Upcoming

All the current GST returns which are in place i.e. GSTR 1, GSTR 2, GSTR 3 and GSTR 3B will no longer be in existence. In place of these, a taxable business will need to file one or few of the following returns / annexures / declarations:

  • a. Monthly Returns – To be filled by taxpayers whose turnover is more than INR 5 Crores i.e. Large Taxpayers (excluding Composition Dealers, ISD, NRR, TDS and TCS)
  • b. Quarterly Returns – To be filled by taxpayers whose turnover is less than INR 5 Crores i.e. Small Taxpayers
    • 1. Sahaj – For taxpayers making only B2C outward supplies
    • 2. Sugam – For taxpayers making both B2C and B2B outward supplies
    • 3. Quarterly Returns – For taxpayers making B2C, B2B and other supplies
  • c. Outward Supplies Annexure
  • d. Inward Supplies Annexure
  • e. Payment Declarations

Monthly Returns

  • a. Monthly filing along with the payment by 20th of the subsequent month
  • Outward Supplies Annexure to be submitted before filing the monthly returns
  • b. 24 / 7 upload of invoice during the month
  • c. Invoice uploaded by the Supplier will be auto-populated in the form of Inward Supplies Annexure
  • d. On the basis of Outward Supplies Annexure and Inward supplies Annexure, the details will be auto-populated in the monthly return
  • e. Real time viewing facility of invoice uploaded by the supplier
  • f. Concept of reporting missing invoices by the recipient within next 2 tax periods - to allow recipient to follow up and get the missing invoice uploaded from the supplier
  • g. Provision to Lock, Reject and Mark the invoice as pending
  • h. Profile based return format based on the type of supplies

Sahaj (B2C)

  • a. Quarterly filing along with monthly payment by 20th of the subsequent month (1st and 2nd month of quarter) via Payment Declaration Form
  • b. Outward Supplies details required at summary level – POS and Tax Rate-wise
  • c. Invoice uploaded by the Supplier will be auto-populated in the form of Inward Supplies Annexure and ITC will be available on the same
  • d. No concept of reporting missing invoices
  • e. HSN Summary at 4 digit level to be declared in a separate table

Sugam (B2C + B2B)

  • a. Quarterly filing along with monthly payment by 20th of the subsequent month (1st and 2nd month of quarter) via Payment Declaration Form
  • b. Outward Supplies Annexure to be submitted before filing Sugam
  • c. On the basis of Outward Supplies Annexure, outward supplies section in Sugam will be auto-populated
  • d. 24 / 7 upload of B2B invoices during the quarter
  • e. Supplies other than B2B and B2C cannot be made through Annexure
  • f. Invoice uploaded by the Supplier will be auto-populated in the form of Inward Supplies Annexure and ITC will be available on the same
  • g. No concept of reporting missing invoices
  • h. HSN Summary at 4 digit level to be declared in a separate table

Quarterly Returns (B2C + B2B + Quarterly)

  • a. Quarterly filing along with monthly payment by 20th of the subsequent month (1st and 2nd month of quarter) via Payment Declaration Form
  • b. Outward Supplies Annexure to be submitted before filing Quarterly Returns
  • c. On the basis of Outward Supplies Annexure, outward supplies section in Quarterly Returns will be auto-populated
  • d. 24 / 7 upload of B2B invoices during the quarter
  • e. Invoice uploaded by the Supplier will be auto-populated in the form of Inward Supplies Annexure and ITC will be available on the same
  • f. No concept of pending invoices or reporting missing invoices
  • g. No requirement to declare the following (which are required only for Annual Return) –
    • 1. Supplies having no liability such as non-GST supplies, exempt supplies etc.
    • 2. ITC on Capital Goods

GST Invoice Management Options

  • a. Missing Invoice – Can be exercised by the recipient for invoices or debit notes which have not been uploaded by the supplier on which the recipient has availed input tax credit
  • b. Pending Invoice – Can be exercised by the recipient for invoices uploaded by the supplier
  • c. Reject Invoice – Can be exercised by the recipient for invoices which are filed by the supplier, but containing the wrong GSTIN
  • d. Viewing Invoice - Invoices uploaded by the supplier will be visible to the recipient. The screen where it shall be visible to the recipient is called "viewing facility". This is also called as Inward Supplies Annexure
  • e. Locking Invoice – To indicate handshake between the recipient and the supplier. Acceptance of entering into the transaction reported in the invoice. Once the invoice is locked, the supplier will not be able to alter the invoice
  • f. Deemed Locking of Invoice - Invoices which are uploaded by the supplier which are either not rejected or not kept pending by the recipient are deemed to be locked on filing of return

GST Return Amendment Options

  • a. Amendment of GST Returns – 2 amendment returns allowed for each tax period
  • b. Amendment of GST Invoices - Only when input tax credit has not been availed and the invoice has not been reported as locked by the recipient
  • c. Amendment of Missing Invoices - Carried out through the amendment return of the relevant tax period to which the invoice pertains

ITC Recovery Options

  • a. Invoice uploaded but return not filed - Recovery shall be first made from the supplier
  • b. Missing Invoice not uploaded by supplier - Recipient should ensure that the supplier uploads invoice within two tax periods, else the ITC claimed will be reversed
  • c. Final Recovery of ITC - In all exceptional circumstances like missing taxpayer, closure of business by the supplier etc. ITC will be recovered from the recipient

Things to Remember about New & Simplified GST Returns

  • a. Introduction of different types of returns based on turnover and type of supplies made
  • b. Single GST Return with the concept of Annexures
  • c. Profile based returns format based on nature of supplies
  • d. 24/7 upload of invoices into GST Portal
  • e. Real-time viewing facility of invoices uploaded by the suppliers
  • f. Amendment Returns concept introduced
  • g. ITC allowed only on the invoice uploaded by the supplier
  • h. No automatic reversal of ITC on missing Invoice – ratification period of 2 months available
  • i. Filing of Nil Returns through SMS
  • j. Return Filing Status of the supplier can be viewed by the recipient in the portal



GST Software Free Trial
 
Thank You !