New GST Changes

The government has implemented a new way for the taxpayers under the Goods & Services Tax which allows them to switch to a new and simpler return form. To help everyone get familiarize with the new process, the new changes will be implemented on a trial basis for the duration between July and September.

In their 31st meeting, the GST Council decided to implement a new GST Return system for the taxpayers. The prototype for this new system was shared by the Goods and Services Tax Network on May 2019, as per the reports the online portal will function the same as the offline tool.

The new return system will have two parts,

  • The Main Return (FORM GST RET-1)
  • Two Annexures (FORM GST ANX-1 and FORM GST ANX-2 

As mentioned above, the taxpayers will be able to use the new system from July 2019 which will enable them to upload invoices using the Form GST ANX-1 Offline tool. Under this trial program from July to September, the taxpayers will also be able to view and download, the inward supply of invoices using the Form GST ANX-2.

The common online portal will still have all the summary of inward supply which can also be viewed and imported easily. This will also allow the users to import their purchase register through the offline tool and match it with their downloaded inward supply invoices.

What will happen after 3 month familiarization period?

As we stated earlier, from July to September, the new system will be there to be used on a trial basis. It is done to make the users familiar with the new process before the new system is completely implemented.

In this 3-month period, the users can continue to file Form GSTR-1 & GSTR-3B. After September, however, the new changes will be implemented and it will be mandatory to fill forms GST RET-1 & GST ANX-1.

The period also varies for small and large taxpayers. Large taxpayers with annual turnover over 5 Crore will have to file FORM GST ANX-1 in October 2019 while the small taxpayers with annual turnover less than 5 Crore will need to file the FROM GST ANX-1 for the quarterly period from October to January in January 2020.

Invoices can be uploaded in FORM GST ANX-1 continuously both by large and small taxpayers from October 2019 onwards.

FORM GST ANX-2may be viewed simultaneously during this period but no action shall be allowed on such FORM GST ANX-2 

The large taxpayers will continue to file Form GSTR-3B monthly for the months of November & December. They will file their first Form GST RET-1 in January 2020.

The small taxpayers would stop filing FORM GSTR-3B and would start filing FORM GST PMT-08 from October 2019 onwards. They would file their first FORM GST-RET-01 for the quarter of October 2019 to December 2019 from 20th January 2020.

From January 2020 onwards, all taxpayers shall be filing FORM GST RET-01 and FORM GSTR-3B shall be completely phased out, the statement said. The government will issue separate instructions for filing and processing of refund applications between October to December 2019. 

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