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All about the new GST Normal Return

Ruchit Agarwal 
Updated on 08 April 2020

LinkedIn


Three proposed returns have been put in public domain and available for download on registered taxpayers that have an annual turnover of up to Rs 5 Crore have the option to file one of the three returns - Sahaj, Sugam and Normal.

New GST returns would be implemented on a pilot basis from April 1, and will be made mandatory from July 1, according to a decision by GST Council.

Periodicity of filing return will be deemed to be monthly for all taxpayers unless quarterly filing of the return is opted for and need to be exercised at the beginning of Year.

Tax in all cases will be paid on monthly basis.

Periodicity of the return filing will remain unchanged during the next financial year unless changed before filing the first return of that year.

Following is the summary of returns proposed:

Return Name

Form No.

Periodicity of filing return

Normal

FORM GST RET-1

Monthly / Quarterly

Sahaj

FORM GST RET-2

Quarterly

Sugam

FORM GST RET-3

Quarterly

New forms are available for review under the Downloads section on www.gst.gov.in

In this article we will discuss on GST Normal Return (FORM GST RET-1).

Monthly/Quarterly (Normal GST Return) (FORM GST RET-1))

Structure of Monthly/Quarterly (Normal GST Return)

1.

Profile Option

Intimation of option for return periodicity and type of quarterly return

2.

FORM GST ANX-1

Annexure of outward supplies, imports and inward supplies attracting reverse charge

3.

FORM GST ANX-2

Annexure of inward supplies

4.

FORM GST RET-1

Monthly / Quarterly (Normal) return

5.

FORM GST ANX -1A

Amendment to FORM GST ANX-1

6.

FORM GST RET1A

Amendment to FORM GST RET-1

7.

FORM GST PMT-08

Payment of self-assessed tax

Profile updation

Intimation of option for return periodicity and type of quarterly return

Sr. No.

Description

Option

1

2

3

4

1.

Was your aggregate turnover during the preceding financial year upto Rs. 5.00 Cr.?

     Yes

     No

2.

If reply is ‘Yes’ at Sr. No. 1, do you intend to file return on quarterly basis?

     Yes

    No

 

3.

If reply is ‘Yes” at Sr. No. 2, choose your return -

(i) Sahaj

 Yes

       No

(ii) Sugam

 Yes

       No

(iii) Quarterly (Normal)

 Yes

       No

Note-

  1. Periodicity of filing return will be deemed to be monthly for all taxpayers unless quarterly filing of the return is opted for.
  2. For newly registered taxpayers, turnover will be considered as zero and hence they will have the option to file monthly, Sahaj, Sugam or Quarterly (Normal) return.
  3. Change in periodicity of the return filing (from quarterly to monthly and vice versa) would be allowed only once at the time of filing the first return by a taxpayer.
  4. Periodicity of the return filing will remain unchanged during the next F.Y. unless changed before filing the first return of that year.
  5. Taxpayers opting to file quarterly return can choose to file any of the quarterly return namely – Sahaj, Sugam or Quarterly (Normal).
  6. Taxpayers filing return as Quarterly (Normal) can switch over to Sugam or Sahaj return and vice versa as below –

Return

Switch over to

Remarks

Quarterly (Normal)

Sugam or Sahaj

only once in a F.Y. at the beginning of any quarter

Sugam

Sahaj

only once in a F.Y. at the beginning of any quarter

Sahaj

Sugam or Quarterly (Normal)

more than once in a F.Y. at the beginning of any quarter

Sugam

Quarterly (Normal)

more than once in a F.Y. at the beginning of any quarter

7. Taxpayers opting to file monthly return or Quarterly (Normal) return shall be able to declare all types of outward supplies, inward supplies and take credit on missing invoices.

Form GST ANX-1

This Annexure contains details of supplies creating output tax liability. It consists of outward supplies, Imports and inward supplies attracting reverse charge.

Before filing this annexure there are profiles in PART A and PARTB. PART A is related to brief questions about retaining the option given in previous tax period.

Part B is required to be filled first time and will be required to file in subsequent periods only when there is some change in information filed in first/earlier Part B of profile. Information in Profile to be answered either Yes or No.

Part A – Brief questions about retaining the option given in previous tax period

Sr. No.

Description

Option

1

2

3

4

1.

I understand that the amount of tax specified in the outward supplies for which the details are being uploaded by me in this annexure shall be deemed to be the tax payable by me under

the provisions of the Act.

     Yes

 

2.

Would you like to change the reply to the questions regarding nature of supplies as filled in the questionnaire of the return of the last tax period, if already filled in?

     Yes

    No

Note - In case the reply to question at S No. 2 is ‘Yes’, the following questionnaire will be opened for exercising the option. In the first tax period, it would be open for all taxpayers.

Part B - Detailed Questionnaire

Sr. No.

Description

Option

1

2

3

4

1.

Have you made B2C supply (table 3A)?

Yes

No

2.

Have you made B2B supply (table 3B)?

Yes

No

3.

Have you made exports with payment of tax (table 3C)?

Yes

No

4.

Have you made exports without payment of tax (table 3D)?

Yes

No

5.

Have you made supply to SEZ units / developers with payment of tax (table 3E)?

Yes

No

6.

Have you made supply to SEZ units / developers without payment of tax (table 3F)?

Yes

No

7.

Have you made any supply which is treated as deemed exports (table 3G)?

Yes

No

8.

Have you received inward supplies attracting reverse charge (table 3H)?

Yes

No

9.

Have you made import of services (table 3I)?

Yes

No

10.

Have you made import of goods (table 3J)?

Yes

No

11.

Have you imported goods from SEZ units / developer on Bill of Entry (table 3K)?

Yes

No

12.

Has your supplier not uploaded invoices on which you have claimed input tax credit (i.e. credit on missing invoices) two tax periods ago (for monthly) or previous tax period (for quarterly)

(table 3L)?

Yes

No

13.

Have you made any supply through e-commerce operators on which tax was required to be collected under section 52?

Yes

    No

Note: Option against all questions will be ‘No’ by default. User can select ‘Yes’ as per his requirement.

Note -

  1. Registered person can upload the details of documents any time during a month/quarter to which it pertains or of any prior period but not later than the due date for furnishing of return for the month of September or second quarter following the end of F.Y. to which such details pertains or the actual date of furnishing of relevant annual return whichever is earlier except that –
  1. taxpayer filing the return on monthly basis will not be able to upload the details of documents from 18th to 20th of the month following the tax period.
  2. taxpayer filing the return on quarterly basis will not be able to upload the details of documents from 23rd to 25th of the month following the quarter.
  1. Supplier can upload the documents for any supply on real time basis.
  • Facility for accepting such documents by recipient shall be made available.
  • Details of documents uploaded by supplier will be shown to concerned recipient also on near real time basis.
  1. Details of the documents issued during the tax period or of any prior period by supplier and uploaded by him after filing of the return for such prior period will be accounted for towards the tax liability of supplier in the return in which such details have been uploaded.
  2. Advances received on account of supply of services shall not be reported here. Same shall be reported in Table 3C(3) and adjustment thereof shall be reported in table 3C(4) of FORM GST RET-1.
  3. Recipient will get credit during a tax period on the basis of the details of documents uploaded by supplier up to 10thof month following the month for which the return is being filed for.
  • Such credit can be availed i.e. credited to the ledger of recipient only on filing of his (i.e. recipient’s) return.
  1. Supplies attracting reverse charge will be reported only by recipient and not by supplier in this annexure.
  2. Place of supply shall have to be reported mandatorily for all supplies. For intra-State supplies, the POS will be the same State in which supplier is registered.
  3. GSTIN of supplier shall be reported (wherever available) in table 3H, 3K and 3L from whom the supplies have been received.
  • PAN may be reported in Table 3H if supplies attracting reverse charge are received from un-registered persons.
  1. Wherever supplies are reported as net of debit/credit notes, the values may become negative in some cases and the same may be reported as such e.g. ( -100).
  2. Details of documents of the period prior to introduction of the current return filing system can also be uploaded in the relevant tables of this annexure.
  • Only those details shall be uploaded which have not been included in the erstwhile FORM GSTR-1.
  • All supplies that are declared in this annexure will be accounted for payment of tax. Following scenarios may happen:

i. Document has not been reported in FORM GSTR-1 and tax has also not been accounted for in FORM GSTR-3B

In this case, document shall be uploaded and tax shall also be paid along with applicable interest except in case of issuance of credit notes.

ii. Document has not been reported in FORM GSTR-1 but tax has been accounted for in FORM GSTR-3B

In this case, document shall be uploaded and adjustment of tax accounted for shall be made in table 3C(5) of FORM GST RET-1, but in case of issuance of credit notes, upward adjustment shall be made in table 3A(8) of FORM GST RET-1.

iii. Document has been reported in FORM GSTR-1 but tax has not been accounted for in FORM GSTR-3B

In this case, uploading of the document shall not be required but adjustment of tax shall be made in table 3A(8) or 3C(5) of FORM GST RET-1, as the case may be.

Edit/Amendment of uploaded documents -

a. Editing of documents up to 10th of the following month -

  • Details of documents uploaded up to 10th of the following month may be edited by supplier up to the said date (10th of the following month) only if such documents are not accepted by recipient.
  • If a document has already been accepted (upto the 10th) by recipient, then such document has to be reset / unlocked by recipient and only then, it can be edited by supplier up to the 10th of the following month.

b. Supplier side Amendment

  • Return system provides for all editing or amendments from supplier’s side only.
  • Recipient will have the option to reset / un-lock or reject a document but editing of or amendment to the same shall be made by the supplier only.

c. Edit/Amendment after 10th of the following month -

Details of documents uploaded by supplier up to 10th of the month following the month or quarter for which the return is being filed for will be auto-populated and made available to recipient in FORM GST ANX-2 to accept, reject or to keep the document pending.

d. Instructions regarding acceptance, rejection or kept pending by recipient may be referred to in the instructions to FORM GST ANX-2.

e. Documents rejected by recipient shall be conveyed to supplier only after filing of the return by recipient.

f. Rejected documents may be edited before filing any subsequent return for any month or quarter by supplier.

  • However, credit in respect of the document so edited or uploaded shall be made available through the next open FORM GST ANX-2 for recipient.
  • However, the liability for such edited documents will be accounted for in the tax period (month or quarter) in which the documents have been uploaded by supplier.

Form GST ANX-2

This Annexure will be auto populated containing details of inward supplies as uploaded by corresponding supplier. This annexure will contain details of credit in following categories:

Table 3A - Supplies received from registered persons including services received from SEZ units (other than those attracting reverse charge)

Table 3B -  Import of goods from SEZ units / developers on Bill of Entry

Table 3C - Import of goods from overseas on Bill of Entry

Table 4 - contains summary of credits in Table 3A,3B and 3C with following bifurcation:

  • Credit on all documents which have been rejected (net of debit /credit notes)
  • Credit on all documents which have been kept pending (net of debit /credit notes)
  • Credit on all documents which have been accepted (including deemed accepted) (net of debit/credit notes Recipient can accept or reset / unlocked up to the 10th of the month following the month in which such documents have been uploaded by the supplier. After that take one of the following three actions can be taken by the recipient in GST ANX 2 on the basis of information uploaded by the supplier:

Table 5 - ISD Credits

Note:-

  1. Details of documents uploaded by corresponding supplier(s) will be auto-populated in this annexure on near real time basis and can be accepted or reset / unlocked by recipient up to the 10th of the month following the month in which such documents have been uploaded.
  2. Recipient can Accept, Reject or to keep pending on continuous basis after 10th of the month following the month in which such documents have been uploaded.
  • However, in case of quarterly return filers communication of such rejected documents and any further action on such rejected documents shall be done only in the return for the next quarter.
  1. Accepted documents would not be available for amendment at corresponding supplier’s end. However, a separate facility to handle such cases will be provided.
  2. Supplier can make corrections in rejected documents through FORM GST ANX-1 as the rejected documents would be shown to supplier.
  3. Pending action will mean that the recipient has deferred the decision of accepting or rejecting the details of the invoices.
  4. ITC in respect of pending invoices shall not be accounted for in table 4A of the main return (FORM GST RET-1) of recipient and such invoices would be rolled over to FORM GST ANX-2 of the next tax period.
  5. Pending invoices will not be available for amendment by supplier until rejected by recipient.
  6. Any document, on which an affirmative action of either accepting or keeping pending or rejecting the document is not taken by recipient in his FORM GST ANX-2, shall be deemed to be accepted upon filing of the return by him.
  • ITC on such deemed accepted documents shall be reflected / shown in table 4A of the main return (FORM GST RET-1).
  1. Status of return filing (not filed, filed) by supplier will also be made known to recipient in FORM GST ANX-2 of the tax period after the due date of return filing is over.
  • Recipients would be able to check the return filing status of suppliers.
  • This status, however, does not affect the eligibility or otherwise of ITC which will be decided as per the Act read with the rules made there under.
  1. Trade name of supplier will also be shown along with GSTIN. Legal name will be shown where trade name is not available.
  2. Separate functionality would be provided to search and reject an accepted document on which credit has already been availed. ITC availed on such document shall be shown for reversal in table 4B(1) of FORM GST RET-1 which may be adjusted in table 4A(11) of FORM GST RET-1 to arrive at the amount of ITC availed.
  • However, such reversal of credit for recipient will be with interest as per the provisions of the Act read with the rules made there under.

12.FORM GST ANX-2 will be treated as deemed filed upon filing of the main return (FORM GST RET-1) relating to the tax period.

Form-GST RET-1

Form GST RET-1 will contain all details of ANX-1 and ANX-2. Other details like Advances, Supplies with No GST liability, Reversal of Credits, TDS, TCS, Interest, late fees, Payment of taxes and Refund from electronic cash ledger will be filled manually.

Note-

  1. Facility to file Nil return through SMS will also be available if no supplies have been made or received.
  2. After uploading details of supplies in FORM GST ANX-1 and taking action on documents auto-populated in FORM GST ANX-2, the taxpayer shall file the main return in FORM GST RET-1.
  3. Information declared through FORM GST ANX-1 and FORM GST ANX-2 shall be auto- populated in the main return (FORM GST RET - 1).
  4. Rejection of the details of documents wrongly uploaded by suppliers, pendency of supplies not received but available in the auto-populated details of documents, reversals, adjustments etc. shall be auto-populated in table 4.
  5. Interest and late fee to the extent of late filing of return, making late payment of taxes, uploading preceding tax periods’ invoices shall be computed by system.
  6. Other interest due to reversals etc. shall be entered by taxpayer on self-assessment basis.
  7. Payment of tax on account of supplies attracting reverse charge, interest, fee, penalty and others shall be made in cash only.
  8. Adjustment of negative liability of the previous tax period shall be allowed to be made along with the current tax period’s liability.
  9. Value of inward supplies attracting reverse charge and import of services mentioned in table 3B will not be added to the turnover. Only the tax amount will be added to the computation of tax liability.
  10. Adjustment to liabilities or input tax credit relating to the period prior to the introduction of current system of return filing shall be reported in table 3 (tax liabilities) or table 4 (input tax credit), as the case may be.

Disclaimer: The contents of this article are solely for informational purpose. It does not constitute professional advice or a formal recommendation. No part of this article should be distributed or copied without express written permission of the author.

The author can also be reached at ruchitnsl@gmail.com


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