The simplified GST returns have been planned to ensure a simplified and easy return filing for taxpayers. In the 37^th GST council meet, the council has decided upon the postponement of Simplified GST returns until April 2020, which further gives taxpayers the opportunity to prepare for the upcoming transition towards Simplified GST. Thus, making most of the time, let us understand Simplified GST Return forms. In this simplification process, three new returns shall be introduced, Normal Return (RET 1), New Sahaj (RET 2) and New Sugam (RET 3), wherein Sahaj and Sugam are the subset to the main return form RET 1, but with lesser data requirement. Furthermore, the Normal Return consists of three main components, i.e. one main return (FORM GST RET-1) and two annexures (FORM GST ANX-1 and FORM GST ANX-2).

While we have already discussed GST Ret 1 in our previous article, let us explore Annexure form GST Anx 1.

Understanding GST ANX 1

The annexure to the simplified form GST Ret1, Anx 1 allows a regular invoice-wise detail upload in the respective sections except in case of B2C Outward supplies, Inward RCM and Import of Services, wherein the taxpayer can upload aggregate details for the same. Furthermore, B2B, DE & SEZ supplies uploaded by the supplier shall be available to the recipient on a near real-time basis for action in their Form GST ANX 2.

 

ANX-1 consists of 4 tables, wherein Table 1 and table 2 relate to basic information like GSTIN, Legal Name, Trade Name, ARN and Date of Filing, while table 3 is divided into 12 sections as given below:

3(A) – Supplies made to consumers and un-registered persons

The section consists of an aggregate value of supplies made to consumers and unregistered persons as net of credit notes and debit notes. While there is need to report HSN here, the inter and intrastate supplies are required to be reported in the given section.  Also, the aggregation for the table has to be done at POS and Rate wise.

Quick Notes

• The supplier has the option to declare any supply Covered under Sec 7 of IGST Act.
• For any amendments in section 3(A), the taxpayer can do the same through GST form RET 1A

The Details of ANX 1 can be directly derived from below listed tables of GSTR 1.

Category of supply	Invoice Type	Nature of supply	Table of GSTR 1
Taxable outward inter-State supplies to unregistered persons, where the invoice value is more than Rs. 2.5 lakh (both through e-commerce operator and otherwise)	B2CL	Inter-State >2.5 Lak	Table 5
Taxable supplies (Net of debit notes and credit notes) to unregistered persons other than the supplies covered in Table 5 (both through e-commerce operator and otherwise)	B2CS	Inter-State <2.5Lak & Intra-State	Table 7

3(B) – Supplies made to registered persons (other than those attracting reverse charge) (including edit/amendment)

The section consists of Invoice-wise details of supplies made to registered persons (GSTIN’s / UIN Holders i.e. B2B) (With HSN/SAC code if turnover is above 5crore. However, the section does not include supplies on which tax is paid by the recipient on a reverse charge basis.  Furthermore, the supply of goods made via SEZ without the bill of entry and services to a person located in a domestic tariff area (DTA) shall also be reported here.

Quick Notes:

• The supplier has an option to declare any supply covered under Sec 7 of IGST Act.
• The option to make Amendment will be available only if the purchaser has rejected the invoices.

The Details of ANX 1 can be directly derived from below listed tables of GSTR 1

Category of Supply	Invoice Type	Nature of Supply	Table of GSTR 1
Taxable outward supplies to registered persons (including supplies made to UINs) other than those attracting reverse charge (RCM=N).	B2B	Inter-State & Intra-State	Table 4A & Table 4C
Amendments of Taxable outward supplies to registered persons (including supplies made to UINs) excluding those attracting reverse charge (RCM=N) and furnished in returns for earlier tax periods Table 4A & 4C	B2BA	Inter-State & Intra-State	Table 9A

3(C) – Exports with payment of tax / 3(D) – Exports without payment of tax

• Section 3(C): declaration of exports of goods and services with payment of tax.
• Section 3(D): declaration of exports of goods and services without payment of tax.

Wherein the transaction level details of HSN/SAC code shall be required to be reported here. Furthermore, there will be a separate utility will be there only for updating shipping bill details.

For other amendments, the taxpayer needs to file the amendment return (RET 1A).

The Details of ANX 1 can be directly derived from the below table of GSTR 1

Category of Supply	Invoice Type	Nature of Supply	Table of GSTR 1
Exports with payment of tax and without payment of tax.	EXWP EXWOP	Inter-State	Table 6A

3(E) – Supplies to SEZ with payment of tax / 3(F) – Supplies to SEZ without payment of tax

• Section 3(E): declaration of invoice wise details of supplies to SEZ developer / Unit with payment of tax.
• Section 3(F): invoice wise details of supplies to SEZ developer / Unit without payment of tax

Wherein the details shall also include Debit & Credit note supplies. For supplies with payment of tax, the supplier will have an option to claim a refund himself or let SEZ Unit claim the same. The taxpayer will be required to report transaction-level details of HSN/SAC code.

Quick Notes:

• The supplier has an option to declare any supply covered under Sec 7 of IGST Act.
• The option to make Amendment will be available only if the purchaser has rejected the invoices.

The Details of ANX 1 can be directly derived from the below table of GSTR 1

Category of Supply	Invoice Type	Nature of Supply	Table of GSTR 1
Supplies to SEZs with payment of tax and without payment of tax.	SEWP SEWOP	Inter-State	Table 6B

3(G) – Deemed exports

Section 147 allows the Government to notify certain supply of goods to be deemed exports, wherein the supplied goods (manufactured in India) do not leave India and the payment for such supplies is received either in Indian rupees or in convertible foreign exchange. The deeming fiction of this kind of supply as deemed export allows a person to enjoy all the tax benefits as available in case of zero-rated supply.

Section 147 and NN 48/2017-Central tax dated October 18^th 2017, prescribes the following supplies to be regarded as deemed exports:

1. Supply of goods against the advance authorization
2. Supply of capital goods against EPCG authorization

1. Supply of goods to EOU (export-oriented undertakings)
2. Supply of gold by bank/PSU specified in Notification no. 50/2017-Customs dated 30th June 2017.

In respect to the aforementioned scheme, section 3(G) provides the supplier with an option to select if either he will claim a refund or the SEZ unit.

Quick Notes:

• Transaction level details of HSN/SAC code are required to be reported here.
• The supplier has the option to declare any supply Covered under Sec 7 of IGST Act.
• The supplier can do Amendment only if the purchaser has rejected the invoices.

The Details of ANX 1 can be directly derived from the below table of GSTR 1

Category of Supply	Invoice Type	Nature of Supply	Table of GSTR 1
Supplies in the nature of deemed exports	DE	Inter-State	Table 6C

3(H) – Inward supplies attracting reverse charge (to be reported by the recipient, GSTIN wise, net of debit notes and credit notes and advances paid, if any):

Section 3(H) consists of details of inward supplies for which the supplier is liable to pay tax on reverse charge basis and advance is paid on such supplies. These details should be reported on GSTIN Wise for registered case and PAN Wise for an unregistered case. Furthermore, the value of supplies reported shall be net of the debit/credit notes and advances on which tax has already been paid at the time of payment of the advance (if any).

If an advance has been paid to the supplier and no invoice or supply received, then on reporting the same, this credit shall reflect in the main return (FORM GST RET-1) but needs to be reversed in table 4 of the said return. This credit can be availed only on receipt of the supply and issue of invoice by the supplier.

The supplier has the option to declare any supply Covered under Sec 7 of IGST Act.

The Details of ANX 1 are to be newly calculated based on same invoices that are considered for deriving below table of GSTR 3B.

Category of Supply	Nature of Supply	Table of GSTR 3B
Aggregate value of all inward supplies (including advances and net of credit and debit notes) on which tax is to be paid on reverse charge basis	Inter-State & Intra-State	Table 3.1(d)

3(I) – Import of services (net of debit/ credit notes and advances paid, if any):

Section 3(I) consists of information pertaining to services imported from a country outside India. This value will be net of credit and debit notes and advances paid if any. Advance paid needs to be declared in the month in which the same was paid. This table does not include services received from SEZ.

If an advance has been paid to the supplier and no invoice or supply received, then on reporting the same, the credit shall flow to the main return (FORM GST RET-1) and shall be reversed in table 4 of the said return. This credit can be availed only on receipt of the supply and issue of invoice by the supplier.

POS and HSN/SAC level details are required to be reported here.

The Details of ANX 1 are to be newly calculated based on same invoices that are considered for deriving below table of GSTR 3B.

Category of Supply	Nature of Supply	Relevant Table of GSTR 3B
Import of services	Inter-state	Table 4.2(a)

It should be noted that the liability to pay GST on import of services arises only if conditions specified in section 2(11) of the IGST Act are satisfied. Some key points to note while filling the table:

• Data for this clause can be confirmed with the details in disclosed Notes to Accounts to Financial Statements.
• In order to qualify as an import of service, it is important that the place of supply of service as per section 13 of IGST Act should be within India
• The rate of exchange for determining the value of taxable service should be the rate of exchange as determined as per generally accepted accounting principles as on the date of time of supply as per section 13 of CGST Act.

3(J) – Import of goods:

Section 3(J) consists of information pertaining to goods imported from a country outside India. This value will be net of credit and debit notes and advances paid if any. This table does not include Goods received from SEZ.

The GSTN is working on online flow of data from ICEGATE, post which data will automatically flow to ANX-2 and this table will not be required. Currently, in order to utilize the flow of ICEGATE, GSTIN has been integrated with the ICEGATE and the GSTIN appears on the Bill of Entry.

Transaction level details of HSN/SAC code are required to be reported here.

The Details of ANX 1 are to be newly calculated based on same invoices that are considered for deriving below table of GSTR 3B.

Category of Supply	Nature of Supply	Relevant Table of GSTR 3B
Import of goods	Inter-state	Table 4.1(a)

3(K) – Import of goods from SEZ units/developers on a Bill of Entry:

Section 3(K) consists of imports of goods from SEZ units/developers on Bill of Entry. If Goods supplied by SEZ with a bill of entry than DTA Units show this transaction in Table 3K of ANX-1. If Goods supply by SEZ without a bill of entry, in such case, there is no need to show the transaction in this table as it will be treated as a normal transaction and shown in Table 3B.

Transaction level details of HSN/SAC code are required to be reported here.

The Details of ANX 1 are to be newly calculated based on same invoices that are considered for deriving below table of GSTR 3B.

Category of Supply	Nature of Supply	Relevant Table of GSTR 3B
Import of goods from SEZ units	Inter-state	Table 4.1(a)

3(L) – Missing documents on which credit has been claimed in T-2 /T-1 (for the quarter) tax period and supplier has not reported the same till the filing of return for the current tax period:

As per new returns, the purchaser can take ITC on a provisional basis in RET-1. However, if the supplier does not show such invoices till next two filing periods for monthly filers and one filing periods for quarterly filers then the purchaser can upload such invoices in this section.

If the supplier uploads the invoice in his ANX-1 after the purchaser reports the same in this table, then the purchaser will accept such invoice in ANX-2. By accepting the invoice in ANX-2, it will be auto computed as available ITC in RET-1. However such credit needs to be reversed by the purchaser in table 4B(3) of the main return (FORM GST RET-1) as this credit was already availed provisionally earlier and cannot be availed twice.

Table 4 contains the details of supplies made to E-Commerce operators.

Summary of supplies made through e-commerce operators which already been reported in table 3 needs to report here. Furthermore, the values in this table include Gross Value; Value of Supplies Returned; Net Value of Supplies and Tax amounts.

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