The new GST returns, which are set to be implemented on October 1, 2020, aim to dramatically decrease the current complexity associated with GST compliance. A trail functionality has been introduced on the GST common site to help firms to get used to new returns.
Businesses will be able to test and understand the new capabilities before it goes live with the prototype of new GST returns. Before diving into the prototype of new GST returns, it’s a good idea to familiarise yourself with a few crucial features. When creating the GST challan in the form PMT-06, businesses must select the mode of online gst return payment. The decision is based on the amount of time available to file the GST return before the deadline, convenience, the banker, and other factors.
If you have Online Company Registration even now, also please do it, because the legal system will move forwards and will have strict laws in future.
Introduction to New GST Return System
At the 31st GST Council Meeting, it was resolved to adopt a new GST return system for taxpayers. This return system will include simplified return forms for GST-registered taxpayers to make filing easier. There would be one primary return, GST RET-1, and two annexures, GST ANX-1 and GST ANX-2, under the New Return System. Except for small taxpayers, who can file the same return quarterly, this return must be filed on a monthly basis. Small taxpayers are those who have a revenue of less than Rs. 5 crore in the preceding fiscal year.
Single GST return Process
With the notion of outward annexure (Form GST ANX-1) and inward annexure (Form GST ANX-2), a single GST return is introduced (Form GST ANX-II). Businesses are obligated to admit liability by providing outward supplies and inward supplies attracting reverse charge in outward annexure. As a result, your main return will be auto-populated with these details.
Inward annexure, on the other hand, will record the information of purchases in order to claim the input tax credit. This annexure will be auto-populated with information from your supplier’s invoices. These details, like those on Form GST Anx-1, will be auto-populated in the main GST return.
Because most of the needed elements are auto-populated into the main forms, the New GST Return Process will greatly minimise the effort and time required for submitting returns.
Types of new GST returns
The main return form to utilise for filing returns is GST RET-1. Monthly filing and payment are due by the 20th of the following month. Before submitting monthly returns, an outward supplies annexure (Form GST ANX-I) must be supplied. The Supplier’s invoice will be auto-populated in the form of an Inward Supplies Annexure (Form GST ANX-II). The details will be auto-populated in the monthly return based on the outgoing supplies annexure and the inward supplies annexure. The ability to view an invoice that has been uploaded by a supplier in real-time.
GST RET-2 is a return form for Sahaj returns with the business option. Quarterly filing with self-assessed monthly online gst return payment via Payment Declaration challan by the 20th of the next month (1st and 2nd month of the quarter). GST PMT-08 form At the summary level – POS and Tax Rate-wise – outward supplies information in Form GST ANX-1 are needed. Inward supplies annexure (Form GST ANX-II) will be auto-populated with the invoice provided by the Supplier, and ITC will be available to the extent data shown in Form GST ANX-II.
Sugam (B2C + B2B)
The main return that a business opting for Sugam must file is Form RET-03. Quarterly filing with self-assessed monthly payment via Payment Declaration challan by the 20th of the next month (1st and 2nd month of the quarter). GST PMT-08 form Form GST ANX-I must be supplied before Sugam returns may be filed. Sugam’s outbound supply section will be auto-populated based on Form GST ANX-1. The ITC will be provided on the invoice uploaded by the supplier, which will be auto-populated in the form of an Inward Supplies Annexure.
Quarterly Returns (B2C + B2B + all other supplies)
Quarterly filing via Payment Declaration challan Form GST PMT-08 with self-assessed monthly online gst return payment, by the 20th of the next month (1st and 2nd month of the quarter). Form GST ANX-I must be supplied before Sugam returns may be filed. The outbound supply section of Sugam will be auto-populated based on Form GST ANX-1. The ITC will be available on the invoice submitted by the supplier, which will be auto-populated in Form GST ANX-II.
Finally, the new GST return system is intended to make tax filing easier and faster for businesses of all kinds in India. It will also help to improve the GST collecting process and allow taxpayers to keep track of all taxes paid for various tax periods. Select the online GST return payment wisely with help of GST consultants like Legalpillers. They are offering the best online ca servcies in India like GST Registration and its return filling, online company registration india. FSSAI registration online etc. Enroll now for the best prices.