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The Govt. has introduced a transition plan for taxpayers under the Goods and Services Tax to switch to new simpler return forms. With a view to ease the transition process, between July-September the new form would be available on a trial basis just for familiarization.
The GST Council in its 31st meeting, on 22nd December 2018, had decided that a new GST return system will be brought for the ease of taxpayers.
According to an Official Statement Made on Tuesday:
- The Goods and Services Tax Network had shared a prototype of the offline tool in May 2019. However, the look and feel of the offline tool would be the same as that of the online portal.
- The new Return has three main components – one main return (i.e. FORM GST RET-1) and two annexures (i.e. FORM GST ANX-1 and FORM GST ANX-2).
- From July 2019, users would be able to upload invoices using the FORM GST ANX-1 offline tool on trial basis for familiarization. They can also view and download, the inward supply of invoices easily using the FORM GST ANX-2 offline tool under the trial program.
- Summary of the inward supply invoices would be available online for viewing on the common portal. Taxpayers shall be able to import their purchase register in the offline mode and match the same with the downloaded inward supply invoices to find out the mismatches from August 2019.
- Between July to September 2019, the new return system (ANX-1 & ANX-2 only) would be available just for trial to make taxpayers familiar with the new format.
- This trial would have no effect at the back end on the tax liability or Input Tax Credit of the taxpayer.
- In this period, taxpayers shall continue to fulfill their compliances just by filing FORM GSTR-1 and FORM GSTR-3B i.e. taxpayers would continue to file their outward supply details in FORM GSTR-1 on a monthly/quarterly basis. And Return in FORM GSTR-3B on monthly basis. Non-filing of these returns shall attract penalties under the GST Act.
The Official Statement Further Stated That:
- From October 2019 onwards, FORM GST ANX-1 shall be made compulsory and FORM GSTR-1 would be completely replaced by FORM GST ANX-1.
- Big taxpayers whose aggregate annual turnover was more than ₹ 5 crore in the previous Financial Year, would upload their monthly FORM GST ANX-1 from October 2019 onwards.
- However, small taxpayers, whose turnover was not more than ₹ 5 crore, shall require to file the first compulsory quarterly FORM GST ANX-1 only in January 2020 for the quarter of October to December 2019.
- Invoices can be uploaded in FORM GST ANX-1 continuously both by large and small taxpayers from October 2019 onwards.
- FORM GST ANX-2 can be viewed simultaneously during this period but no action can be performed.
- For October and November 2019, large taxpayers would continue to file FORM GSTR-3B every month. They shall file their first FORM GST RET-01 for the month of December 2019 by 20thJanuary 2020.
- Small taxpayers are required to stop filing FORM GSTR-3B and would start filing FORM GST PMT-08 from October 2019 onwards. They can file their first FORM GST-RET-01 for the quarter of October 2019 to December 2019 from 20thJanuary 2020.
- From January 2020 onwards, all taxpayers shall be required to file FORM GST RET-01, as FORM GSTR-3B shall be completely removed.
The Govt. will issue separate instructions for filing and processing of refund applications for the period between October to December 2019.