New returns are to be introduced under GST in order to simplify the complexities in the current return system. The pilot for the same has already been introduced on the common portal on a trial basis (Voluntary applicability for taxpayers). While the Indian taxpayers prepare themselves for GST 2.0, let’s have a look at the key changes, a taxpayer will have to adhere to under New Returns.

Key changes in New Returns

Under the New Returns regime, a taxpayers may notice the below-given 5 key changes in the return filing system:

• Defining Taxpayer’s Profile
  Since the New return system provides the taxpayer with various choices to choose from, a new module, namely the Taxpayer’s Profile will be introduced under the New return system. The Taxpayer’s profile will help the taxpayer to set their preferences they wish to opt-in for such as the type of returns, frequency, etc.
  The choice indicated by the taxpayers on their profile will help GSTN portal to determine/display the returns applicable to the taxpayer and the course of action that needs to be followed.
• Uploading Invoice details along with HSN
  As per the current GST scenario, the GSTR 1 data would comprise of invoice level data, wherein the data used to be aggregated at rate level. However, under the New returns, taxpayers will also be required to file HSN related data along with the invoice level data in their ANX 1.
• Cutting down of disclosure requirements
  The New returns will also require data on the state or aggregated level instead of detailed or line level data, thereby reducing the amount of data a taxpayer was required to disclose for their transactions such as B2CL, Advances, ITC, etc.
• Formalising Channel for ITC Claim
  Currently, in order to claim ITC, the taxpayer was required to self-compute his/her input tax credit and furnish the claim. Subsequently, for any discrepancy found between the ITC claim and GSTR 2A, the government would send a notice for the same. However, the New returns will regularise the whole ITC claiming process, i.e. instead of self-declaration of ITC, taxpayers will have to route it through their GST returns and annexures.
• Auto-Computed Main returns
  Contrasting to the current GST regime, where the taxpayer is required to file their monthly returns on a self-declaration basis, the main returns under new return system will be calculated by the government based on the information submitted by the taxpayer and the supplier in the annexures, along with the taxpayer’s tax liability.

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