In a bid to simplify tax compliance in India, implementation of simplified GST return forms was proposed in the 31st GST council held on December 22, 2018. These simplified forms – GST Sahaj and GST Sugam were expected to be implemented from April 1, 2019, however, in the absence of a proper system required for the transition, the forms had to be deferred, until further notice. Nevertheless, the CBIC has finally released the road map for Simplified GST returns implantation to ease the transition process.
Transition Plan for New GST return system
Here is a simple infographic for the same:
A month-wise transition plan for the new and simplified return forms is given below:
——————————————————-May ’19 ————————————————–
The prototype of the offline tool is released on the common portal, to provide the taxpayer with the look and feel of the new online portal. The new GST taxation system shall have the following main components:
- Main Return form:- GST RET-1
- Annexure Forms:-
- GST ANX-1
- GST ANX-2
—————————————————-June ’19 —————————————————-
On a trial basis, the user will be able to access the 2-annexure forms,
- GST ANX-1: to upload invoices on the common portal
- GST ANX-2: to view and download the summary for the inward supply
P.S: This trial would have no impact at the back end on the tax liability or ITC of the taxpayer.
————————————————–August ’19 ————————————————–
The Taxpayers will be able to import their purchase register in the offline tool and match it with the downloaded internal supply of invoices to discover the mismatches in their records.
—————————————————October ’19 ————————————————
The month of October will play a crucial role in the transition as GST Annexure form, GST ANX 1 will replace form GSTR 1 and will be made mandatory for every taxpayer. Although, the Large taxpayers (Annual Turnover exceeding Rs. 5crore) will be able to file their monthly returns in GST ANX 1 from October onwards, while, the small taxpayer will have to wait until January 2020 to be able to file their returns for the Oct’19 to Dec’19 quarter. The following key points have to be noted
- October onwards, the large and small taxpayers, both will be able to continuously upload the invoice data in form GST ANX 1.
- Form GST ANX 2 may be viewed simultaneously during this period but no action shall be allowed.
- Large taxpayers would still have to continue filing form GSTR-3B on a monthly basis, until November’19.
- For small taxpayers, FORM GSTR-3B will be replaced by form GST PMT-08 from October 2019 onwards.
—————————————————January ’20 ————————————————
January 2020 marks the beginning of the new GST return system as form GSTR 3B is completely phased out and businesses are required to file their first ever form GST RET 01.
Points to be noted
- Separate instructions shall be issued for filing and processing of refund applications between October to December 2019.
- Failure to file Form GSTR 1 and GSTR 3B, until they have been discontinued or completely phased out, can attract penal provision, applicable as per GST law.
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