In our previous article, we have discussed in greater detail on GST Form RET-2 of New Returns. Let us now have a look at some of the sections of RET-1. Return RET-1 has a total of 9 tables, out of which in this article we will focus on table 4 in detail. Kindly note table 3 is already detailed in our previous articles GST Form RET 3.
In this blog we have just thrown some light on the details to be mentioned in table 4A of RET2 of New Returns.
Table 4A : Reversed and ineligible portion of Input tax credit in GST RET 1.
This is the only table where certain values will be auto-populated from ANX-1 certain from ANX-2 and some will be manually inputted by the user. The values in this table will be the gross value including ITC reversed and ineligible portion of ITC. Following table states the details of this table:
|Sr. No.||Details of ITC based on auto-population from FORM GST ANX-1, action taken in FORM GST ANX-2 and other claims||Auto-population/Manual||Description|
|1||Credit on all documents which have been rejected in FORM GST ANX-2 (net of debit /credit notes)||Auto ANX-2||In ANX-2 user is supposed to take actions, while taking actions if a taxpayer rejects any invoice uploaded by supplier then total value of all such invoices will come in this table|
|2||Credit on all documents which have been kept pending in FORM GST ANX-2 (net of debit /credit notes)||Auto ANX-2||In case there is an invoice wherein taxpayer’s do not want to take ITC for the current month or he is not sure about this invoice, he may keep such invoices as pending. Details of all such pending invoices will come here|
|3||Credit on all documents which have been accepted (including deemed accepted) in FORM GST ANX-2 (net of debit/credit notes)||Auto ANX-2||In case taxpayer accepts an invoice then details of such invoices will appear here. Also GSTN says that if no action (accept, reject or pending) has been taken on any invoice and taxpayer files return for the period then GSTN will consider such invoice as deemed accepted. Details of all deemed accepted invoices will also come here|
|4||Eligible credit (after 1st July, 2017) not availed prior to the introduction of this return but admissible as per Law(transition to new return system)||User||In case there was any credit belonging to pre-new returns regime wherein taxpayer was eligible to take but missed to take. He can take it now by inputting value in this section|
|5||Inward supplies attracting reverse charge (net of debit/credit notes and advances paid, if any) [table 3H of FORM GST ANX-1]||Auto ANX-1||This section will cover ITC available on all such purchases wherein reverse charge is applicable net of debit/credit notes and advances paid if any needs to be included here|
|6||Import of services (net of debit /credit notes and advances paid, if any and excluding services received from SEZ units) [table 3I of FORM GST ANX-1]||Auto ANX-1||This section gives the details of ITC available on import of services net of debit/credit notes, it includes advances and excludes services rendered from SEZ units|
|7||Import of goods [table 3J of FORM GST ANX-1]||Auto ANX-1||This section gives the details of ITC available on goods imported net of debit/credit notes, it includes advances and excludes goods purchased from SEZ units|
|8||Import of goods from SEZ units / developers [table 3K of FORM GST ANX-1]||Auto ANX-1||This section gives the details of ITC available on goods purchased from SEZ units with bill of entry. This value is net of debit/credit notes|
|9||ISD Credit (net of ISD credit notes) [table 5 of FORM GST ANX-2]||Auto ANX-2||The credit received from head office to branches will be included in this section|
|10||Provisional input tax credit on documents not uploaded by the suppliers [net of ineligible credit]||User||This is the only value in the table which is net of ineligible credit. This value will be manually inputted by taxpayer and it includes ITC of all such invoices which are not uploaded by supplier but eligible for ITC and taxpayer wants to take credit|
|11||Upward adjustment in input tax credit due to receipt of credit notes and all other adjustments and reclaims||User||i) There may be situations where a credit note was issued by the supplier against an invoice but the recipient had taken nil or partial credit on such invoice. Since acceptance of credit note will lead to reversal of credit, there may be instances where there will be a double reversal of credit for the recipient. In order to address the same, a facility has been provided for recipients to self-adjust any such loss of credit arising from issuance of credit notes by the supplier. For example, A supplier issues an invoice for Rs. 1000/- to the recipient in the month of May. The recipient accepts the invoice in his FORM GST ANX-2 but takes 50% credit on the said invoice in his FORM GST RET-1. In the month of June, the supplier gives a credit note to the recipient who accepts the same in his FORM GST ANX-2. Upon acceptance of the said credit note, the credit involved therein is reversed and this gets reflected in FORM GST RET-1. In such a case, the recipient may make an upward adjustment of 50% credit in this row as he had initially taken only 50% credit on the original invoice.
ii) Any other reclaim of ITC can also be reported here.
Table 4B : Input tax credit reversed for the return period
This table depicts the Input tax credit reversed for the return period
|Sr. No||Details of reversals of credit||Auto-population/Manual||Description|
|1||Credit on documents which have been accepted in previous returns but rejected in current tax period (net of debit/ credit notes)||Auto||If an invoice was earlier accepted by the taxpayer but now he wants to reject it then he can do so through a separate utility that will be provided by GSTN and the value will get populated in this section|
|2||Supplies not eligible for credit (including ISD credit) [out of net credit available in table 4A above]||User||Here taxpayer needs to enter all such credits which are available but ineligible for ITC|
|3||Reversal of credit in respect of supplies on which provisional credit has already been claimed in the previous tax periods but documents have been uploaded by the supplier in the current tax period (net of ineligible credit)||User||In case taxpayer takes any credit on provisional basis in table 4A.10 of RET-1 say later such document is uploaded by supplier. Then taxpayer will have to reverse such credit as such invoice will be accepted and will be included again as ITC in table 4A3 above|
|4||Reversal of input tax credit as per law
(Rule 37, 39, 42 & 43)
|User||In case taxpayer wants to reverse any credit due to rule 37, 39, 42 and 43 then he should enter such amount in this section|
|5||Other reversals including downward adjustment of ITC on account of transition from composition levy to normal levy, If any||User||If the turnover of the taxpayer exceeds the limit specified for composition scheme then he will be treated as normal taxpayer. In such a situation say there is some credit which the taxpayer has taken when he was a composite taxpayer but now he wants to reverse the same. Such amount will be included in this section|
Table 4C : Input tax credit available in GST RET 1
Input tax credit available (net of reversals) (A- B): This will be an automated value. This is the actual amount of ITC which the taxpayer will claim in the main normal return.
Table 4D : ITC declared during first two months of the quarter
ITC declared during first two months of the quarter (Only for quarterly return filers): This table will be auto-populated from PMT-08. This section is applicable only for that normal taxpayer’s who file their return quarterly. Such taxpayer’s will show the credit claimed in first month and second month of the quarter in this section.
|ITC declared during first two months of the quarter (Only for quarterly return filers)|
Table 4E : Net Input Tax Credit available in GST RET 1
Net ITC available (C-D): This will be an automated value. For monthly filers this value will be equal to value in Table C of RET-1. For quarterly filers this value will be the net off amount of value in Table C and Table D of RET-1
|Input tax credit on capital goods (out of C)|
|Input tax credit on services (out of C)|
Apart from the above mentioned 5 tables there is also one more section which is part of Table 4 of RET-1. This table is mere break-up of the ITC as capital goods and services. This will be inputted by the taxpayer manually.
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