The GST Council in its 31st meeting recommended introduction and implementation of a new GST Return System in a phased manner from October 2019 to facilitate taxpayers. However, the GST Counsil in it's 37th meeting postphoned the implementation of new GST returns to April 2020. Earlier, the tax payer used to file GSTR-1 and GSTR-3B on montly basis and now in the new GST return system they are simplified, they need to file GST RET-1 inplace of GSTR-1 and GSTR-3B. The GST RET-1 will have two annexures that are Form GST ANX-1 and Form GST ANX-2. FORM GST ANX-1 will have details of outward supplies, inward supplies on which reverse charge is applicable, and import of goods and services and FORM GST ANX-2 will have details of inward supplies.

The periodicity of filing return in Form GST RET-1 will be deemed to be monthly for all tax payers unless quarterly filing of the return is explicitly opted for by small tax payers. The tax payer whose turnover is more than Rs. 5 crores during the previous financial year can file monthly return and the tax payer whose turnover is up to Rs. 5 crores can opt to file on quarterly basis. In addition, small tax payers can choose to file, instead of Form GST RET-1, any of the other two new quarterly returns, namely SAHAJ (Form GST RET-2) and SUGAM (Form GST RET-3).

Small taxpayers opting to file the return on quarterly basis are required to pay tax, either by cash or credit or both, on monthly basis on the taxable supplies made during the month by filing FORM GST PMT – 08 for the first two months of the quarter. Tax must be paid by 20th of the month succeeding the month which the tax liability pertains to. To conclude:

Form GST RET-1 (Normal Monthly)

Tax payers whose aggregate turnover in the preceeding financial year was above Rs. 5 crores will have to file monthly return. This return needs to be filed monthly by 20th of the month succeeding the month to which the tax liability pertains. Monthly return in FORM GST RET-1 needs to be filed based on FORM GST ANX – 1 and FORM GST ANX – 2.

Form GST RET-1 (Normal Quarterly)

Tax payers whose aggregate turnover in the preceeding financial year was upto Rs. 5 crores will have to file quarterly return. This return needs to be filed quarterly by 20th of the month succeeding the quarter to which the tax liability pertains. Tax has to be paid on monthly basis through Form GST PMT-8.

Form GST RET-2 (SAHAJ Quarterly)

Taxpayers whose aggregate turnover in the preceding financial year was upto Rs.5 Crore and have supplies only to consumers and unregistered persons (B2C supplies) can file this return based on FORM GST ANX – 1 and FORM GST ANX – 2 on quarterly basis, but pay tax on monthly basis through FORM GST PMT-08. Taxpayers opting to file Sahaj can declare outward supply under B2C category and inward supplies attracting reverse charge only. E-commerce operators are ineligible to file Sahaj.

Form GST RET-3 (SUGAM Quarterly)

Taxpayers whose aggregate turnover in the preceding financial year was upto Rs.5 Crore and have made supplies to consumers and un-registered persons (B2C) and to registered persons (B2B) can file this return based on FORM GST ANX – 1 and FORM GST ANX – 2 on quarterly basis, but pay tax on monthly basis through FORM GST PMT-08. Taxpayers opting to file Sugam can declare outward supply under B2C and B2B category and inward supplies attracting reverse charge only. E-commerce operators are ineligible to file Sugam.

Form GST ANX-1

Three important details to be declared in Form GST ANX-1: Outward supplies, Inward supplies attracting reverse charge and Details of import of goods & services.

Form GST ANX-1A

The amendment of details of earlier tax period can be made in Form GST ANX-1A before the due date of September return following the end of the financial year or the actual date of furnishing relevant annual return, which ever is earlier.

Form GST ANX-2

Details of documents uploaded by the corresponding supplier will be auto populated in Form GST ANX-2 and recipient can take action on the auto populated documents to accept, reject or to keep pending on continuous basis after 10th of the following month on which it was uploaded by supplier. Accepted documents would not be available for amendment at the corresponding suppliers end. Supplier may edit rejected documents before filing subsequent return. However, credit will be available to recipient through next Form GST ANX-2. The tax liability will be accounted for the same tax period.

Form GST PMT-8

A small tax payer may taxes on monthly basis using Form GST PMT-8. The tax has to be paid on or before 20th the subsequent month.

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