New GST Returns Filling System for Registered Taxpayers, Composition Dealers and Small Taxpayers

New GST Returns Return Filling System for Registered Taxpayers, Composition Dealers and Small Taxpayers

What are New GST returns?

New GST returns refer to the revised format of Goods and Services Tax (GST) returns that were introduced by the Indian government to simplify the GST return filing process and make it more user-friendly for taxpayers.

Under the new GST returns system, taxpayers must file three main returns, namely, GST ANX-1, GST ANX-2, and GST RET-1. The ANX-1 is the outward supplies statement which is required to be filed by taxpayers to provide details of their outward supplies made during the tax period. The ANX-2 is the inward supplies statement required to be filed by taxpayers to provide details of their inward supplies received during the tax period. The RET-1 is the main return that is required to be filed by taxpayers to provide details of their final tax liability for the tax period.

The new GST returns system is designed to be more automated and data-driven, focusing on reducing the compliance burden on taxpayers and increasing transparency and accountability in the GST regime. The government has also introduced various other measures such as e-invoicing, QR code-based payments, and simplified GST registration to simplify the GST compliance process for businesses further.

New GST Return Filling system For Registered Taxpayers

The new GST return filing system for registered taxpayers in India is designed to simplify the compliance process and make it more user-friendly. Under the new system, registered taxpayers must file their returns on a monthly or quarterly basis, depending on their turnover.

The key features of the new GST return filing system for registered taxpayers are as follows:

Three main returns: The new system requires registered taxpayers to file three main returns, namely, GST ANX-1, GST ANX-2, and GST RET-1.

1. GST ANX-1: The GST ANX-1 is the outward supplies statement, which provides details of all outward supplies made by the taxpayer during the tax period.
2. GST ANX-2: The GST ANX-2 is the inward supplies statement, which provides details of all inward supplies received by the taxpayer during the tax period.
3. GST RET-1: The GST RET-1 is the main return, which summarises the taxpayer’s final tax liability for the tax period.
4. Sahaj and Sugam Returns: Taxpayers with a turnover of Rs. 5 crores can opt for Sahaj and Sugam Returns.
5. ITC Matching: The new system provides for auto-populating details in ANX-2 from the suppliers’ ANX-1, thereby ensuring ITC matching for taxpayers.
6. Late fees: Late fees have been reduced to Rs. Fifty per day (for CGST and SGST) and Rs. 100 per day (for IGST).
7. Offline tool: An offline tool is provided for easy and quick uploading of invoices.
8. E-invoicing: Taxpayers with a turnover over Rs. Fifty crores have to implement E-invoicing.
9. QR code: A dynamic QR code will be displayed on B2C invoices issued by taxpayers with turnover over Rs. 500 crores.

Overall, the new GST return filing system aims to streamline the compliance process, reduce the burden on taxpayers, and increase the efficiency and transparency of the GST regime.

New GST Return Filling system For Composition Dealers

The new GST return filing system for composition dealers in India is designed to simplify the compliance process and make it more user-friendly. Under the new system, composition dealers must file their returns every quarter.

The key features of the new GST return filing system for composition dealers are as follows:

1. Quarterly return: Composition dealers must file a single quarterly return, namely, GST CMP-08.
2. GST CMP-08: The GST CMP-08 return summarises the composition dealer’s self-assessed tax liability and the details of the tax paid during the tax period.
3. Annual return: Composition dealers are also required to file an annual return, namely, GSTR-4.
4. GSTR-4: The GSTR-4 return provides details of the composition dealer’s annual turnover and tax liability for the financial year.
5. Sahaj and Sugam Returns: Taxpayers with a turnover of Rs. 5 crores can opt for Sahaj and Sugam Returns.
6. Late fees: Late fees have been reduced to Rs. Fifty per day (for CGST and SGST) and Rs. 100 per day (for IGST).
7. Offline tool: An offline tool is provided for easy and quick uploading of invoices.

Overall, the new GST return filing system for composition dealers aims to simplify the compliance process and reduce the burden on small taxpayers. By filing quarterly and annual returns, composition dealers can easily comply with GST obligations and avoid penalties or late fees.

New GST Return Filling system For Small Taxpayers

The new GST return filing system for small taxpayers in India is designed to simplify the compliance process and make it more user-friendly. Under the new system, small taxpayers are classified as those with an annual turnover of up to Rs. 5 crores.

The key features of the new GST return filing system for small taxpayers are as follows:

1. Quarterly return: Small taxpayers must file a quarterly return, which can be either Sahaj or Sugam, depending on the nature of their business.
2. Sahaj: The Sahaj return is simplified for small taxpayers who only make B2C (business-to-consumer) supplies.
3. Sugam: The Sugam return is simplified for small taxpayers who make B2B (business-to-business) and B2C supplies.
4. GST ANX-1 and ANX-2: Small taxpayers are not required to file the GST ANX-1 and ANX-2 returns, which are required for regular taxpayers.
5. GST RET-1: Small taxpayers must file the GST RET-1 return, which provides a summary of the taxpayer’s final tax liability for the tax period.
6. Late fees: Late fees have been reduced to Rs. Fifty per day (for CGST and SGST) and Rs. 100 per day (for IGST).
7. Offline tool: An offline tool is provided for easy and quick uploading of invoices.

Overall, the new GST return filing system for small taxpayers aims to simplify the compliance process and reduce the burden on small businesses. By filing quarterly returns and using the Sahaj or Sugam options, small taxpayers can easily comply with their GST obligations and avoid penalties or late fees.

How will the transition to the New GST Return Filling system work?

The transition to the new GST return filing system in India is being implemented in a phased manner to ensure a smooth transition for taxpayers. The GSTN (Goods and Services Tax Network) has provided a detailed plan for the transition, which includes the following steps:

1. Migration to new system: The first step in the transition process is the migration of taxpayers to the new system. Taxpayers must complete the migration process by providing the necessary details and completing the validation process.
2. Parallel filing: After the migration process is completed, taxpayers will have to file their returns on the existing system and the new system for a few months. This parallel filing will help ensure the new system works smoothly and all issues are resolved before the transition is complete.
3. Training and education: The GSTN will provide training and education to taxpayers to help them understand the new return filing process and the new forms.
4. Pilot testing: The GSTN will pilot the new system with a selected group of taxpayers to ensure that the system is functioning properly and all issues are resolved.
5. Rollout: Once the pilot testing is completed successfully, the new system will be rolled out for all taxpayers. The GSTN will support and assist taxpayers during the transition process to ensure a smooth and hassle-free transition.

Overall, the transition to the new GST return filing system is designed to be smooth and seamless for taxpayers. The phased approach will help ensure all issues are identified and resolved before the new system is rolled out to taxpayers. Taxpayers are advised to stay updated on the latest developments and comply with their GST obligations to avoid penalties or late fees.