GST NEW RETURN PROTOTYPE IN GSTN

[Ganeshan Kalyani]

The existing return in GSTR-1, GSTR-2 & GSTR-3 is going to be replaced by new return in FORM RET-1 consisting of ANX-1, ANX-2. In addition to this return in FORM GST RET-2 and GST RET-3 is also be going to be come into effect in a phased manner. The prototype of the new return (trail) is being made available in www.gst.gov.in for the taxpayer to walk through the return and get an idea as to how the new return template would look like. In order to go through the prototype one does not required login credential. It is available in the homepage itself. It has two option 'New Return Prototype' and 'Offline Tools for New Return (Trial)'. The taxpayer can give his feedback on the return prototype to the email id [email protected]

The first option of new return is online mode of filing return. A taxpayer can fill up the details of outward supply in an online mode. And in case of inward supply he has to accept, reject, keep pending the invoices auto populated in ANX-2 based on the ANX-1 filed by the suppliers. The prototype gives an idea as to how the return would  look like and how the taxpayer would file the return one it comes into force. The second option is an offline method where the taxpayer will have to fill up the template in section wise validate it and then upload it in the GSTN.

This is a second attempt of the Government to bring everything online so as to have a transparent view on the transactions affected by the taxpayer. The tax liability of the taxpayer on outward supply, inward supply liable to reverse charge, import of goods or service is determined once ANX-1 is filed. He has to pay tax on the supplies furnished in ANX-1. Presently, tax payment by the taxpayer is on self assessment basis in GSTR-3B.

The tax eligibility in new return is based on acceptance of the invoices populated in ANX-2. Once the invoices are accepted by the recipient it becomes an eligible credit. Also, when the invoices uploaded by the supplier is accepted by the recipient the  outward supply of the supplier gets locked and then he has to pay tax on that invoice. This make a two way check. One that ensures that supplier has paid the tax and second the taxpayer has claimed the credit correctly.

A Provisional credit would also be allowed to the recipient on inward supplies received but the invoices not uploaded by the supplier. Then the recipient will have to follow up with the supplier to ask him to upload the invoices in ANX-2. The follow up procedure is going to increase a lot. A dedicated person will be required in a big company to do the follow up job. This will increase the job requirement in the market as many of the small company may wish to delegate this kind of work.

Discussions to this article

[KASTURI SETHI]

Dear Sir,

Your article is timely and very useful for all.

[Ganeshan Kalyani]

Thank you Sir. Your suggestions I have noted Sir. Thanks.