The 31st GST Council meeting had settled on introducing a new GST return filing model on a trial basis. So as to ease the progress to the new GST return filing system, a transition plan has been worked out.
Presently, there’s a major trial for the taxpayers having GST registration, and that is to migrate to the newly introduced GST return filing system. Hence, the government has now presented a transition plan to the new GST return filing system.
First of all, we must understand in depth about the new GST return filing system.
1. How will the new GST return filing format look like?
The new GST return filing format was already updated on the GST portal in the month of May 2019 for all the general taxpayers who have GST registration. In this new GST return filing format, there would be 3 crucial returns to be filed:
- The normal return i.e. FORM GST RET-1 along with these 2 annexures:
- Structure GST ANX-1
- Structure GST ANX-2.
2. What is the purpose of GST ANX-1?
The GST ANX-1 is the annexure which is to be filed for the 3 month trial period, i.e. from July to September 2019.
- From July 2019 onwards, the users will be required to submit GST invoice through the GST ANX-1 offline tool on the GST portal. This will be done t make them familiar to the new GST return filing format.
- Importantly, from October 2019 onwards, FORM GST ANX-1 shall replace FORM GSTR-1.
The large taxpayers whose yearly turnover in the previous year was exceeding ₹5 Crores would have to furnish GST ANX-1 on a month to month basis.
3. What is the purpose behind GST ANX-2?
The GST ANX-2 is another annexure with FORM GST RET-1.
- The purpose behind FORM GST ANX-2 is to view and download, the GST invoices related to inward supply (purchases) of the period from July to September 2019, i.e. the trial period.
- The outline of purchase invoices would be made available on the GST portal.
Importantly, from October 2019 onwards, FORM GST ANX-2 shall replace FORM GSTR-3B.
4. What is the date for new GST return filing model to be rolled out?
Till the transitional period, which is from July to September 2019, the new GST return filing system (FORM GST RET-1 with Form GST ANX-1 and ANX-2) would be implemented only on a trial basis. This is just to make the taxpayers habitual to the new GST return filing system.
However, after October 2019 the new GST return filing model shall be made mandatory throughout India wherein-
- Form GST ANX-1 will swap FORM GSTR-1
- Form GST ANX-2 will swap FORM GSTR-3B.
5. Will this pilot project affect the current GST return filing?
No. This pilot project of GST return filing at the back end won’t really have a much bigger impact on the GST tax liability or the GST ITC of the taxpayers having GST registration.
To sum up, during this transition period,
- The taxpayers are required to continue fulfilling all their GST compliances by filing FORM GSTR-1 & FORM GSTR-3B.
- Taxpayers shall continue disclosing their outward supply details in FORM GSTR-1 on a monthly/quarterly basis and the tax return in FORM GSTR-3B on a month to month basis. Non-filing of these 2 basic returns shall still draw in the penalty as under the GST Act.
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