Unique features of the New GST Return System

Supplier can upload the Tax Invoices on real time basis in Anx-1.

Recipient can view his purchase Invoices on near real time basis.

Recipient can also view whether supplier has filed his return or not.

Supplier must upload the Tax Invoices latest by 10th of Next Month.

It is proposed that recipient can claim ITC on missing invoices also subject to certain conditions.

To find out missing invoices, Offline IT Tool will be provided for matching invoices in Anx-2 with invoices in the accounting system of recipient.

Payment of tax shall be discharged full at the filing of RET-1 or SAHAJ or SUGAM itself.

In case of default in payment of tax by the supplier, recovery proceedings will be initiated on supplier. 

Recipient can do the following actions on the invoices appearing in Anx-2 (auto drafted Purchase Invoice)- Accept, Reject, Pending.

If no action is taken on a particular invoice, it will be deemed by the system as accepted and ITC will be available against these invoices.

Generally, goods / services must have been received during the month to claim the ITC. However, in the proposed system, ITC on goods / services received in the next month before filing the return, can be claimed.

Once invoice is accepted by the recipient, i.e., locked by the recipient, supplier cannot amend those invoices.

Locked Invoice should be unlocked by the recipient, for making any amendment by the supplier.

Supplier will be able to issue Debit Note or Credit Note on locked invoices also.

If credit/debit note is issued against any pending invoice, then system will club the credit/debit note with pending invoice.

Missing invoices shall be reported in RET-1 of the current month. System will calculate the interest automatically. Once the tax and interest are paid, the missing invoice will be clubbed with the monthly return to which it relates.

For amendments, separate Return Form are available.

Anx-1 - Anx-1A

RET-1 - RET-1A

Maximum 2 amendments return can be filed for any one month.

“NIL” Return can be filed by “SMS”.

Additional liability can be paid which arises in amendment return, can be paid at the time of return filing itself.

Negative liability if any shall be carried forward to next month regular return.

Higher late fee for amendment return if change in liability is more than 10%

Shipping Bill details also should be entered in Anx-1 by the exporters. If the shipping bill details are not available by the time of filing the return, the same can be entered later also.

The export data then will be transmitted to ICEGATE portal for cross verification purposes.

Until the facility is ready to pull the data from ICEGATE portal, importers can avail ITC on imports and supplies from SEZ can be availed on self-declaration basis.

When supplier is defaulted in payment of tax, he will not be able to upload the invoices in Anx-1.

HSN should be reported at 4 digit level in monthly return.

The tables in the return will be opened based on the profile of the taxpayer.

Return filing on quarterly basis

Payment of taxes on monthly basis

ITC claim on self-declaration basis for monthly payment

Small taxpayers should choose the option at the beginning of the financial year.

Change from quarterly to monthly or vice-versa is only allowed once at the beginning of any quarter.

ITC will be restricted to the auto populated amount. ITC cannot be claimed on missing invoices other than those allowed.

Supplies such as non-GST supply, exempted supply need not be reported in quarterly returns. To be reported in Annual Returns.

ITC on capital goods need be entered separately.

Taxpayers who would like to have facility of missing / pending invoices, they may opt monthly returns.

Quarterly Return filers also can upload invoices on continuous basis.

In the first 2 months of every quarter, tax will be paid on monthly basis using payment declaration form (PMT-08).

In the 3rd month quarterly return must be filed Normal, Sahaj or Sugam. Then any short payment of monthly tax would attract interest.

HSN should be reported at 4-digit level in quarterly return.

Small Taxpayers who opted for Sahaj have to:

Pay tax on monthly basis

File Sahaj (RET-2) quarterly basis

Small Taxpayers who opted for Sugam have to:

Pay tax on monthly basis

File Annexure of supplies to Return Sugam quarterly basis

File Sugam (RET-3) quarterly basis