New GST Return System

In the 31st GST council meeting in December 2018, it was decided that a new return system under GST will be introduced. This system is applicable from 1st April 2020. However, in the in the 39th GST council meeting held on 14th March 2020, the new return system was deferred from 1st April 2020 to 1st October 2020. The flow of events under new returns system will be as under:

Important points to be noted in above flow of events:

• The credit in respect of documents edited or uploaded shall be made available through the next open Form GST ANX-2 for the recipient.
• The liability for such edited documents will be accounted for the tax period in which the documents have been uploaded by the supplier.

Applying for GST return got simpler-
Annexures forming part of New GST Return System (Form RET-1/2/3):
Form ANX-1 Form ANX-2

• Contains details of supply + other income liable to be taxed under GST
• To be filed by supplier
• To be filed any time before 10th of month (can file daily, weekly, fortnightly, monthly)
• Details to be filed
  • GSTIN of buyer
  • Document type, number, date, value
  • Total taxable value, head wise tax amount
  • Six-digit level of HSN code mandatory
  • Place of supply 1. Contains details of purchases
• Auto-populated on filing Form ANX-1 by supplier on real-time basis
• 3 options for buyer: accept, reject, pending (If not selected, it will be deemed to be accepted)
• If Form ANX-1 is not filed by the supplier, ITC can be claimed only in Form GST RET-1 on provisional basis
• ITC on provisional basis can be allowed only till:
  • Monthly return filer: T+2 months
  • Quarterly return filer: T+5 months
  (‘T’ – period for which tax return is being filed)

Applicability of new return system is as follows:

applicability of new GST return system
**ITC will be allowed till T+2 mon
ths for monthly returns and T+5 months for quarterly returns on provisional basis.
#quarterly return for turnover below 5 crores.

Switching type of returns:



One can switch from the form under which they are filing returns:

• are allowed to switch against one another any number of times in a year: GST RET-2 to GST RET- 3, GST RET-3 to GST RET- 1, GST RET-2 to GST RET- 1.
• are allowed to switch against each other only once a year: GST RET- 3 to GST RET- 2, GST RET- 1 to GST RET- 2, GST RET 1 to GST RET- 3

FAQs for different business type-

Particulars Retailer

• (all transactions are B2C) up to turnover 3 crores Wholesaler
• (all transactions are B2B) up to turnover 3 crores. Any supplier with turnover greater than 5 crores Exporter
• with turnover less than 5 crores

1. Which return is applicable?

Form GST RET-2 Form GST RET-3 Taxpayer needs to compulsorily file return under Form GST RET-1 on monthly basis Taxpayer can file return under Form GST RET-1 on quarterly basis

2. Can the return form type selected earlier be changed during FY 2020-21?

Any number of times in a year to GST RET-3 or GST RET-1 Can switch to GST RET-2 only once a year or taxpayer can switch to form GST RET-1 without any restrictions on number of times

3. When should taxpayer file Form ANX-1?

10th day of the next month
10th day of the next month
10th day of the next month
10th day of the next month

4. Till when can taxpayer accept/ reject/ unlock Form ANX-2?

Before 25 days from the end of the quarter.

At InCorp, our GST Team provides seamless support with GST registration, filing GST online and GST refund. Explore all our GST services and feel free to get in touch with our experts today. Read More at InCorp Advisory India