New Simplified GST Return Filing Model

Transition to New GST Return Filing Model

Phase I

This phase is currently going on and will continue till the proposed returns are implemented:

GSTR 1 – Monthly Returns for those whose turnover is more than INR 1.5 CroresGSTR 1 – Quarterly Returns for those whose turnover is less than INR 1.5 CroresGSTR 3B – Monthly Summary Return to be submitted by 20th of the next month

Phase II

During this stage, the dealer will be constantly fed with information about the existing gap between ITC available, and provisional ITC being claimed.

Invoice-wise details of all outward supplies to be uploadedITC to be calculated automatically and allocated provisionallysFinal ITC to be allotted based on self-declaration (similar to GSTR 3B of Phase I)

Phase III

During this stage, the facility of provisional credit will get withdrawn and input tax credit will only be limited to the invoices uploaded by the sellers from whom the dealer has purchased goods.

Invoice-wise details of all outward supplies to be uploadedFinal ITC to be calculated automatically and allocated provisionallyNo self-declaration to be there

GST Returns – Current vs. Upcoming

All the current GST returns which are in place i.e. GSTR 1, GSTR 2, GSTR 3 and GSTR 3B will no longer be in existence. In place of these, a taxable business will need to file one or few of the following returns / annexures / declarations:

Monthly Returns – To be filled by taxpayers whose turnover is more than INR 5 Crores i.e. Large Taxpayers (excluding Composition Dealers, ISD, NRR, TDS and TCS)Quarterly Returns – To be filled by taxpayers whose turnover is less than INR 5 Crores i.e. Small TaxpayersSahaj – For taxpayers making only B2C outward suppliesSugam – For taxpayers making both B2C and B2B outward suppliesQuarterly Returns – For taxpayers making B2C, B2B and other suppliesOutward Supplies AnnexureInward Supplies AnnexurePayment Declarations

Monthly Returns

Monthly filing along with the payment by 20th of the subsequent monthOutward Supplies Annexure to be submitted before filing the monthly returns24 / 7 upload of invoice during the monthInvoice uploaded by the Supplier will be auto-populated in the form of Inward Supplies AnnexureOn the basis of Outward Supplies Annexure and Inward supplies Annexure, the details will be auto-populated in the monthly returnReal time viewing facility of invoice uploaded by the supplierConcept of reporting missing invoices by the recipient within next 2 tax periods - to allow recipient to follow up and get the missing invoice uploaded from the supplierProvision to Lock, Reject and Mark the invoice as pendingProfile based return format based on the type of supplies

Sahaj (B2C)

Quarterly filing along with monthly payment by 20th of the subsequent month (1st and 2nd month of quarter) via Payment Declaration FormOutward Supplies details required at summary level – POS and Tax Rate-wiseInvoice uploaded by the Supplier will be auto-populated in the form of Inward Supplies Annexure and ITC will be available on the sameNo concept of reporting missing invoicesHSN Summary at 4 digit level to be declared in a separate table

Sugam (B2C + B2B)

Quarterly filing along with monthly payment by 20th of the subsequent month (1st and 2nd month of quarter) via Payment Declaration FormOutward Supplies Annexure to be submitted before filing SugamOn the basis of Outward Supplies Annexure, outward supplies section in Sugam will be auto-populated24 / 7 upload of B2B invoices during the quarterSupplies other than B2B and B2C cannot be made through AnnexureInvoice uploaded by the Supplier will be auto-populated in the form of Inward Supplies Annexure and ITC will be available on the sameNo concept of reporting missing invoicesHSN Summary at 4 digit level to be declared in a separate table

Quarterly Returns (B2C + B2B + Quarterly)

Quarterly filing along with monthly payment by 20th of the subsequent month (1st and 2nd month of quarter) via Payment Declaration FormOutward Supplies Annexure to be submitted before filing Quarterly ReturnsOn the basis of Outward Supplies Annexure, outward supplies section in Quarterly Returns will be auto-populated24 / 7 upload of B2B invoices during the quarterInvoice uploaded by the Supplier will be auto-populated in the form of Inward Supplies Annexure and ITC will be available on the sameNo concept of pending invoices or reporting missing invoicesNo requirement to declare the following (which are required only for Annual Return) –Supplies having no liability such as non-GST supplies, exempt supplies etc.ITC on Capital Goods

GST Invoice Management Options

Missing Invoice – Can be exercised by the recipient for invoices or debit notes which have not been uploaded by the supplier on which the recipient has availed input tax creditPending Invoice – Can be exercised by the recipient for invoices uploaded by the supplierReject Invoice – Can be exercised by the recipient for invoices which are filed by the supplier, but containing the wrong GSTINViewing Invoice - Invoices uploaded by the supplier will be visible to the recipient. The screen where it shall be visible to the recipient is called "viewing facility". This is also called as Inward Supplies AnnexureLocking Invoice – To indicate handshake between the recipient and the supplier. Acceptance of entering into the transaction reported in the invoice. Once the invoice is locked, the supplier will not be able to alter the invoiceDeemed Locking of Invoice - Invoices which are uploaded by the supplier which are either not rejected or not kept pending by the recipient are deemed to be locked on filing of return

GST Return Amendment Options

Amendment of GST Returns – 2 amendment returns allowed for each tax periodAmendment of GST Invoices - Only when input tax credit has not been availed and the invoice has not been reported as locked by the recipientAmendment of Missing Invoices - Carried out through the amendment return of the relevant tax period to which the invoice pertains

ITC Recovery Options

Invoice uploaded but return not filed - Recovery shall be first made from the supplierMissing Invoice not uploaded by supplier - Recipient should ensure that the supplier uploads invoice within two tax periods, else the ITC claimed will be reversedFinal Recovery of ITC - In all exceptional circumstances like missing taxpayer, closure of business by the supplier etc. ITC will be recovered from the recipient

Things to Remember about New & Simplified GST Returns

Introduction of different types of returns based on turnover and type of supplies madeSingle GST Return with the concept of AnnexuresProfile based returns format based on nature of supplies24/7 upload of invoices into GST PortalReal-time viewing facility of invoices uploaded by the suppliersAmendment Returns concept introducedITC allowed only on the invoice uploaded by the supplierNo automatic reversal of ITC on missing Invoice – ratification period of 2 months availableFiling of Nil Returns through SMSReturn Filing Status of the supplier can be viewed by the recipient in the portal