Yes, Adjustment of negative liability of the previous tax period shall be allowed to be made along with the current tax period’s liability

Yes, taxpayers can make changes to suggested ITC Utilisation provided by the Portal

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 the system. Other interest due to reversals etc. shall be entered by the taxpayer on self-assessment basis

As per the press release issued by the Ministry of Finance dated 21-06-2019, the CBIC has proposed three new GST Returns forms, which shall be introduced in a phased manner – GST RET-1 (Monthly/Quarterly Normal), GST RET-2 (Sahaj), GST RET-3 (Sugam).

GST RET-1 (Monthly / Quarterly)
GST RET-2 (Quarterly)
GST RET-3 (Quarterly)

The registered person, whose aggregate turnover is more than Rs. 5 crores in the preceding financial year, shall mandatorily file GST RET-1 on monthly basis.

If aggregate turnover of a registered person is up to Rs. 5 crores in the preceding financial year, he can file returns in GST RET-1 on quarterly basis at his discretion

GST RET-1 (Normal)
GST RET-2 (Sahaj)
GST RET-3 (Sugam)

Interest and late fees for making prescribed default (i.e., late filing of return, making late payment of taxes, uploading preceding tax period’s invoices, etc.) shall be computed by the system. Other interest due to reversals of input tax credit shall be calculated and entered by the taxpayer on self-assessment basis.

The payment shall be made on monthly basis for all taxpayers. The payment of self-assessed liabilities shall be made by 20th of the succeeding month to which liability pertains. Thus, even if a taxpayer is opting to file return on quarterly basis, he has to make the payment of tax on monthly basis

For taxpayers filing monthly – the payment will be through monthly RET-1(Normal)
For taxpayers filing quarterly – the payment for first two months will be through Form PMT-08 and for the third month will be through quarterly RET-1(Normal)/RET-2(Sahaj)/RET-3(Sugam)

Interest and late fees for making prescribed default (i.e., late filing of return, making late payment of taxes, uploading preceding tax period’s invoices, etc.) shall be computed by the system. Other interest due to reversals of input tax credit shall be calculated and entered by the taxpayer on self-assessment basis

The taxpayers can switch from one return form to another during the financial year in the following manner:

ANX-1 is annexure of outward supplies, inward supplies attracting reverse charge,import of services,import of goods.

ANX-2 is annexure of inward supply through which recipient can claim ITC by taking actions on invoices uploaded by supplier in ANX-1

Return in GST RET-2 can be filed by a registered person whose aggregate turnover in the preceding Financial Year does not exceed Rs.5 crore and has only B2C outward supplies(including Nil rated, exempt and Non-GST) and/or inward supplies liable to reverse charge. Nil exempt, Non-GST are need not be declared in said return.

Return in GST RET-3 can be filed by a registered person whose aggregate turnover in the preceding Financial Year does not exceed Rs.5 crore and has only B2B and/or B2C outward supplies(including Nil rated, exempt and Non-GST) and/or inward supplies liable to reverse charge. Nil exempt, Non-GST are need not be declared in said return.

No. Taxpayers opting to file quarterly return as ‘Sahaj/Sugam cannot make supplies through e-commerce operators on which tax is required to be collected under section 52.

No.Taxpayers opting to file quarterly return as ‘Sahaj/Sugam shall not take credit on missing invoices.

The registered person, whose aggregate turnover is more than Rs. 5 crores in the preceding financial year, shall mandatorily file GST RET-1 on monthly basis.

If aggregate turnover of a registered person is up to Rs. 5 crores in the preceding financial year, he can also file returns in GST RET-1 on quarterly basis at his discretion

Liability arising shall be settled through payment of tax in full by all classes and categories of tax-payers.

Yes. Filing frequency can be changed from Monthly to Quarterly or vice versa only once at the beginning of a financial year.

Yes, The return formats are changed and the invoicing rules under GST continue to apply as they were. Accordingly, the document number shall not exceed 16 characters. This can be alphanumeric with slash (/) and dash (-).

The return formats are changed and the invoicing rules under GST continue to apply as they were. Accordingly, the document number shall not exceed 16 characters. This can be alphanumeric with slash (/) and dash (-).

All suppliers with annual aggregate turnover of more than Rs. 5 crore and that in relation to exports, imports and SEZ supplies will upload HSN level data. HSN code shall be reported at least at six digit level for goods and at least at six digit level for services. Other taxpayers (turnover upto Rs. 5 crore) shall have an optional facility to report HSN code in the relevant table or leave it blank.

The return formats are changed and the invoicing rules under GST continue to apply as they were. Accordingly, the document number shall not exceed 16 characters. This can be alphanumeric with slash (/) and dash (-).

For newly registered taxpayers, turnover will be considered as zero. Hence, they will have the option to file GST RET-1 (Monthly or Quarterly), Sahaj or Sugam

Form GST ANX-1 can be amended through Form GST ANX-1A and Form GST RET-1/2/3 can be amended through Form GST RET-1A/2A/3A respectively.

When supplier uploads the same in his ANX-1

Details of Outward supplies, import of goods & services and inward supplies attracting reverse charge are required to be uploaded in ANX-1 by regular registered tax payers. ANX-1 is required to be uploaded for filing RET1/2/3
For Nil return no details shall be uploaded in ANX-1

Supplier may upload the data on real-time basis. For quarterly filers, the data uploading may be done either on real-time basis/at the end of the quarter/by 22nd of month following the end of the quarter. For monthly filers, the uploading of documents can be done till 17th of the month following the filing period.

(Disclaimer: Since Quarterly return filers are restricted to upload documents from 23rd till 25th of the month following the Quarter, it is assumed that Due date for Quarterly return filers is 25th of the month following the Quarter)

Taxpayer’s Filing Frequency & Restricted Dates
For Monthly filers: No uploading allowed between 18th – 20th of following month
For Quarterly filers: No uploading allowed between 23th – 25th of month following quarter

Documents of the period prior to introduction of the current return filing system can be uploaded in the relevant tables of Annex 1. Only those details shall be uploaded which have not been included in the erstwhile FORM GSTR-1 or GSTR3B.
All such supplies that are declared will be accounted for payment of tax.

Recepient cannot upload any invoices which pertain to inward supplies from a registered supplier and not liable to reverse charge.
Recepient is allowed to upload only inward supplies liable to reverse charge, import of services at an aggregated level and import of goods data at invoice/bill of entry level.

In case, the particulars of the document may be correct but the document has been reported in the wrong table. Therefore, when such documents are rejected by the recipient, instead of amending the document, a facility of shifting such documents to the appropriate table will be provided.

Yes, but the same will be considered in next open return of the Recipient.
However, in case of monthly return filer liability on invoices uploaded between 11th to 17th of a month will be accounted in same filing period for the supplier.

And, in case of quarterly return filer liability on invoices uploaded between 11th to 22nd of a month will be accounted in same filing period for the supplier.

Example: Invoice uploaded on 17th Feb- Liability will be considered in RET 1 of Jan But for Recipient same will be considered in RET 1 of Feb for the pupose of ITC.

(Disclaimer: Since Quarterly return filers are restricted to upload documents from 23rd till 25th of the month following the Quarter, it is assumed that Due date for Quarterly return filers is 25th of the month following the Quarter)

Supplier may upload the data on real-time basis. For quarterly filers, the data uploading may be done either on real-time basis/at the end of the quarter/by 22nd of month following the end of the quarter.
However, documents uploaded till 10th of the month/quarter following the filing period, shall be considered for the reporting in filing period of recipient. Any documents uploaded from 11th to 22nd shall be reflected in subsequent month of Anx-2 for the recipient and in filing period of Annex 1 of Supplier
(Disclaimer: Since Quarterly return filers are restricted to upload documents from 23rd till 25th of the month following the Quarter, it is assumed that Due date for Quarterly return filers is 25th of the month following the Quarter)

Yes, 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).
Example: In case only credit note is issued in current month for B2B supplies done in previous month, the amounts table 3B of Annex 1 will be negative

Debit / Credit note is issued by the supplier with respect to supplies other than supplies attracting reverse charge shall be reported in the respective tables of Annex 1

Taxable value shall be reported as ‘Zero’. Only tax amount shall be reported in such cases

No. Unlike done currently there is no requirement to report reference invoice number for Debit/Credit Note.

Missing Invoices are the invoices which the supplier has missed out to upload in his Anx-1.
Where the supplier has failed to report the supplies after a lapse of two tax periods in case of monthly return filers and after a lapse of one tax period in case of quarterly return filers. Details of missing invoices are required to be reported in section 3L of ANNEX 1 of Recipient, in case ITC of these invoices are availed on provisional basis in ANNEX 2 by the Recipient.

RCM supplies to be reported by the recipient, GSTIN wise for every supplier, net of debit/credit notes and advances paid, if any. Supplier need not report RCM Supplies

In case of supply is within the state but still IGST is applicable to such transaction, then Sec7 applicable is to be mentioned as Y.

There is no bifurcation for B2C category. B2CS and B2CL is summed up as B2C. Such supplies are to be reported net of debit/credit notes.

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

Aforesaid, mechanism works for B2B Supplies, Supplies to SEZ with or without payment of tax, Deemed export

No, the recipient will have the option to reset / un-lock or reject a document but editing or amendment to the same shall be done by the supplier only.

The documents relating to such supplies may be amended by the supplier at any time and the same shall not be dependent upon the action taken (accept/reject/pending) by the recipient.

Yes, uploaded documents duly rejected by Recipient can be amended. Amendment can be done for B2B Supplies, Supplies to SEZ with / without payment of tax and Deemed Exports

In case document uploaded is accepted by the recipient. Same will have to be rejected by recipient in order to enable supplier to amend the same

The input tax credit in respect of pending invoices shall not be available to the recipient in the tax period in which pending action is taken.
Such credit would be rolled over to FORM GST ANX-2 of the next tax period

• In case, the recipient files his return on monthly basis, all the documents uploaded by any supplier [irrespective of the fact whether the supplier files his return on monthly or quarterly (Normal, Sahaj or Sugam) basis] shall be available for acceptance by such recipient upto the 10th of the month following the month for which the return is being filed. The supplier can edit the documents so accepted by the recipient only if the same are reset/unlocked by the recipient by the said date.
• In case, the recipient files his return on quarterly (Normal, Sahaj or Sugam) basis, all the documents uploaded by any supplier [irrespective of the fact whether the supplier files his return on monthly or quarterly (Normal, Sahaj or Sugam) basis] shall be available for acceptance by such recipient upto the 10 th of the month following the quarter for which the return is being filed. The supplier can edit the documents so accepted by the recipient only if the same are re-set/unlocked by the recipient by the said date.

The documents uploaded in FORM GST ANX-1 for month ‘M’ by a supplier who did not file his return for the previous two consecutive tax periods (M-1 and M-2 months)shall be made available to the recipient in FORM GST ANX-2 with an indication that the credit shall not be available on such documents. In other words, such documents will be visible to the recipient but the recipient cannot claim ITC on such inward supplies. However, the recipient can reject or keep such documents pending until filing of return by the supplier. For suppliers filing return on quarterly basis, this period will be one quarter i.e. if return of one quarter has not been filed, then recipient will not be able to claim credit on the invoices uploaded during next quarter.

If supplier delays/fails to upload the invoices, ITC on the same can be claimed by Recipient under provisional heads.
If invoices for which credit has been claimed but the details of supplies are yet to be uploaded by the supplier(s) concerned as detailed below: (i) Where the supplier has failed to report the supplies after a lapse of two tax periods in case of monthly return filers and after a lapse of one tax period in case of quarterly return filers, the recipient will have to disclose invoice level details of such supplies in Section 3L of Annex 1

Provisional input tax credit can be taken on documents eligible for ITC but not uploaded by the suppliers. Same has to be net of ineligible credit. These details will not be auto populated.
Taxpayers opting for Sahaj/Sugam do not have an option for taking provisional ITC.

Details of documents uploaded by the supplier will be shown to the concerned recipient on near real time basis

There is no timeline defined for the same currently. It is at the discretion of Recipient the time upto which same has to kept pending
Pending action will mean that the recipient has deferred the decision of accepting or rejecting the details of the invoices. There may be multiple reasons for the same such as supplies are yet to be received or the recipient decides that ITC is not to be taken for the time being etc.

Status of return filing (not filed, filed) by the supplier will be made known to the 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 the suppliers.

Supplier may upload the data on real-time basis. For quarterly filers, the data uploading may be done either on real-time basis/at the end of the quarter/by 22nd of month following the end of the quarter, irrespective of filing frequency of recipient

(Disclaimer: Since Quarterly return filers are restricted to upload documents from 23rd till 25th of the month following the Quarter, it is assumed that Due date for Quarterly return filers is 25th of the month following the Quarter)

For Supplier – Liability of such invoice will be considered in January. For Recipient invoice will be available for action in Annex 2 of Feb. However Recipient may take ITC on provisional basis for JAN RET 1

ANX-2 is auto-populated and nothing is to be uploaded. Only actions can be taken.

Recipient can
1) Accept
2) Keep Pending
3) Reject from 10th till 20th
4) No Action (reset action in case already accepted, available upto 10th only)
Pending action recipient has deferred decision to accept/reject any details of invoice may be because supplies are yet to be received or ITC is not to be taken for time being
No editing can be done to the details if document is kept in pending by Recipient

In case Recipient takes no action Document shall be deemed to be accepted on the date of filing Return

1) Accept – Can be done from the time details are visible in Annex 2 till the date of filing Return
2) Kept Pending and Reject- Any document can be marked as kept pending/ Reject from 10th till date of filing of the final return RET-1/2/3

In case Recipient takes no action, Document shall be deemed to be accepted on the date of filing Return

No
Invoices in Anx-2 can be actioned upon in following manner:
-> Accept/Reset/Unlock upto 10th of month following the Month/ Quarter
-> Accept/Reject/Keep pending after 10th of month following the Month/ Quarter

Separate functionality is to be provided to Recipient to search and reject an accepted document on which credit has already been availed. Input tax credit 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 input tax credit availed.

Pending invoices will not be available for editing or amendment by the supplier until rejected by the recipient

Separate functionality is to be provided to Recipient to search and reject an accepted document on which credit has already been availed. Input tax credit 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 input tax credit availed.

The supplier can report excess tax collected from the recipients, if any, in the main return (FORM GST RET-1) under any other liability in Sr. No. 8 of table 3A.

Viewing of the balance amount available in electronic cash and electronic credit ledger will be made available before making payment

Payment of tax on account of supplies attracting reverse charge, interest, fee, penalty and others shall be made in cash only