Is the new GST return system dumped?
Category: GST, Posted on: 13/08/2020 , Posted By: Webtel

The New Return System proposed in the 31st GST Council Meeting held on 22nd December 2018, was to be implemented from October 2020. However, at a webinar hosted by Assocham on 23rd July 2020, Yogendra Garg, Principal Commissioner at CBIC for GST Policy stated that the government is planning to roll out a modified version of the existing GST model rather than the New Return System as declared earlier, to ease the GST compliance. The proposed New Return System would have comprised of more simplified return forms for the registered taxpayers, viz, one major return GST RET-1 and two annexure forms, GST ANX-1 and GST ANX-2. GST RET-1 would list out all the supplies made and the ITC availed on them along with tax payments and interest. Annexure forms GST ANX-1 and GST ANX-2 would list the details of outward supplies and inward supplies respectively. These returns were to be filed monthly, however, small business taxpayers with turnover of up to Rs 5 crore could file them on a quarterly basis. The revenue invoices could be uploaded on a real-time basis. The GST Network is currently working on improving the present GST returns system and modifying it to bring forward an advanced version.

Is the new GST return system dumped?

The changes in the modified GST Returns would be as follows:
  1. GSTR 1 form that lists the sales information would be more detailed.
  2. Introduction of GSTR 2B that would list the company’s purchases like GSTR 2A, but with additional information on input tax credits (ITC).
  3. Auto-population of the GSTR 3B form.
  4. For comparison of GSTR 2A with the purchase register, a matching tool would be added.
  5. Addition of a communication channel between the buyer and the seller.
  6. Improvement of the comparison table of input tax credit and tax liability, post-incorporation of the ITC on IGST being paid on imports.
  7. E-invoice to be implemented for the business with an annual turnover of at least Rs 500 crore instead of Rs 100 crore.
  8. Improvement of the process of linking data of GSTR1 and GSTR 2A with GSTR 3B for the flow of input tax credit.

For any questions or queries regarding the new GST Return system, please write to contactus@webtel.co.in or simply comment to this article.

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Posted by: CA Amit Tyagi on Jul 31 2020 11:59PM
Thanks team webtel for such informative blog !


Posted by: CA N.D Gupta on Aug 1 2020 12:00AM
Great insights !


Posted by: Amandeep Singh on Aug 1 2020 12:12AM
Carefully written article Considering all the aspects... in short it gives bird eye view of complete gst return system.


Posted by: Amandeep Singh on Aug 1 2020 7:11PM
Carefully written article Considering all the aspects... in short it gives bird eye view of complete gst return system.
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