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Form GST RET-1: How To File A Detailed Return

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The GST Council has introduced a New Return System to improvise and simplify the return filing procedure in late 2018. The prototype and trial version was recently introduced in July 2019. Currently, companies are required to file two monthly returns GSTR-3B and GSTR-1 providing details of outward and inward supplies, and the payment of tax. However, under the new mechanism, a taxpayer will have to file only one main called the FORM GST RET-1, which will have 2 annexures namely FORM GST ANX-1 and FORM GST ANX-2.

FORM GST ANX-1 will have details of outward supplies, inward supplies on which reverse charge is applicable, and import of goods and services. These details will be reported invoice-wise (except for B2C supplies) on a real-time basis.  FORM GST ANX-2 will have details of inward supplies, for the recipient of supplies to take action by either accepting or rejecting these documents, or marking them as pending, for action to be taken later. 

 

 

Latest update as on 20 September 2019

As per the decision made at the 37th GST council meeting, the implementation of the new GST return system for all taxpayers and for all forms stands deferred to April 2020 as against earlier month of October 2019.

1. Simplified Returns and its Need

The new simplified returns under GST is based on the concept of a single return, and the frequency of filing the same will depend on the turnover of the entity. 

Below are some of the benefits of simplified returns which makes its introduction a necessary move:

  1. Simplified returns are profile based returns. A lot of supplies come under the ambit of GST. However, most of the dealers deal with only a few supplies. Thus, a profiling questionnaire will enable the GST return format to display only those information fields that are relevant to the taxpayer’s profile.
  2. Invoices can be uploaded by the supplier on a continuous and real-time basis, which will be available for action to be taken by the recipient. 
  3. The simplification in forms and filing procedure will lead to lower compliance costs.
  4. Taxpayers will be able to amend their returns once filed, and file up to two amendment returns for a tax period.

 

2. Frequency of Filing FORM GST RET-1

A normal taxpayer making B2C supplies, B2B supplies, inward supplies attracting reverse charge mechanism, NIL rated, zero-rated or supplies though e-commerce operators can file GST RET-1. 

Large taxpayers (i.e. with turnover > Rs 5 crore in the previous FY) will have to file this return monthly, whereas small taxpayers (i.e. with turnover up to Rs 5 crore in the previous FY) can opt to file the return on a quarterly basis.

 

3. Contents of FORM GST RET-1

The new GST RET-1 contains 9 parts:

1. GSTIN: A taxpayer needs to input the GSTIN.

2. Basis details: Basic details such as trade name, legal name, etc. will be auto-populated on the basis of the GSTIN.

3. Summary of outward supplies, inward supplies attracting reverse charge, debit/credit notes etc. and tax liability: This table requires details of all outward supplies made to consumers and unregistered persons. It also requires details of all inward supplies on which reverse charge mechanism is applicable. The details in this table will get auto-populated from Annexure 1.

This summary is divided into five parts:

 

No. Description Details
A Details of outward supplies Below supplies should be reported here:

  • Taxable supplies made to consumers and unregistered persons will be auto-populated from table 3A of FORM GST ANX-1
  • Taxable supplies made to registered persons (other than those attracting reverse charge) will be auto-populated from table 3B of FORM GST ANX-1
  • Exports made with and without  payment of tax will be auto-populated from table 3C and 3D of FORM GST ANX-1 respectively 
  • Supplies made to SEZ units/developers with and without  payment of tax will be auto-populated from table 3E and 3F of FORM GST ANX-1 respectively
  • Supplies made to registered persons which are treated as deemed exports will be auto-populated from table 3G of FORM GST ANX-1
  • Liabilities relating to the period prior to the introduction of current return filing system and any other liability 
B Details of inward supplies attracting reverse charge
  • Inward supplies attracting reverse charge will be auto-populated from Table 3H of Form GST ANX-1.
  • Import of services will get auto-populated from Table 3I of Form GST ANX-1.

Note: In both cases, values will be net of debit/credit notes and advances on which tax has already been paid at the time of payment.  

C Details of debit/credit notes issued, advances received/adjusted and other reduction in liabilities Below should be reported here:

  • Debit/Credit notes issued during the period for supplies other than those attracting reverse charge
  • Advances received on account of supply of services during the period after giving effect to refund vouchers
  • Adjustment made out of advances reported 
  • Reduction in tax liability due to change from composition levy to normal levy
D Details of supplies having no liability Below supplies should be reported here:

  • GST covered supplies exempted from tax
  • NIL rated supplies
  • Supplies not covered elsewhere
  • Outward supplies attracting reverse charge
  • Supplies by SEZ/developers to DTA on a bill of entry
  • Non-GST supplies
  • Supplies not specified in Schedule III
E Total value and tax liability Total value of supplies will be A+B+C+D and tax liability will be auto-populated.

 

4. Summary of inward supplies for claiming ITC: This table requires details of all purchases in order to claim ITC. These details will get auto-populated from Annexure 1 and Annexure 2. This summary is divided into five parts:

 

No. Description Details
A Details of ITC based on auto-population from FORM GST ANX-1 and action taken in FORM GST ANX-2 and other claims Below amounts should be reported here:

  • Any eligible credit not claimed in Form GSTR-3B can be claimed here
  • Provisional credit on documents not uploaded by the supplier

Below amounts will be auto-populated from GST ANX-1:

  • Amount of credit involved in the accepted and rejected documents
  • Amount of credit involved in the pending documents
  • Credit distributed by ISD and reported in FORM GSTR-6

Below amounts will be auto-populated from GST ANX-1:

  • Credit on inward supplies attracting reverse charge as reported in table 3H of FORM GST ANX-1
  • Credit on import of services as reported in table 3I of FORM GST ANX-1 
  • Credit on import of goods from overseas as reported in table 3J of FORM GST ANX-1
  • Credit on imports of goods from SEZ units/developers as reported in table 3K of FORM GST ANX-1
B Details of reversals of credit Below amounts should be reported here:

  • Ineligible credit
  • Reversal of ITC under Rule 37,39,42 and 43 
  • Supplies for which documents were subsequently uploaded by the supplier but the credit was later claimed by the recipient on a provisional basis
  • Documents rejected by the recipient after accepting and filing of the return by the supplier
  • Any other reversal
C Net input tax credit available after reversal  It is the difference between A and B above.
D ITC declared during the first two months of the quarter  It will be auto-populated from Form GST PMT-08 for the first two months.

Note: This table is for quarterly return filers.

E Net ITC available  It is the difference between C and D above and the same will get posted to the electronic credit ledger for utilisation.

 

5. Amount of TDS and TCS credit received in electronic cash ledger: Amounts will be credited in the electronic cash ledger based on returns filed by TDS deductors in Form GSTR -7 and TCS collectors in Form GSTR-8.

6. Interest and late fee liability details: The system auto calculates interest and late filing fee arising due to late filing of the return. All other interest liabilities need to be self-assessed by the taxpayer.

7. Payment of tax:  A taxpayer needs to make payment of tax liability in cash after utilizing the ITC. However, any payment of interest or penalty should be made in cash.

8. Refund claimed from electronic cash ledger: This table will be auto-populated from the electronic cash ledger.

9. Verification: A taxpayer has to verify the information provided in all of the above tables by clicking on the checkbox and signing the return. A taxpayer can proceed to file the return only after verifying the details.

 

4. Format of FORM GST RET-1

ret-1

5. Annexures to FORM GST RET-1

Annexure 1 is divided into three parts:

  1. Basic Details: Details such as GSTIN, trade name, legal name, etc. will be auto-populated.
  2. Details of outward supplies, inward supplies attracting reverse charge and import of goods and services.

It contains table 3A to Table 3L which requires various details such as- 

  • Supplies made to consumers, registered persons and unregistered persons.  
  • Exports with/without payment of tax
  • Supplies to SEZ with/without payment of tax
  • Deemed exports
  • Inward supplies attracting reverse charge
  • Import of services 
  • Import of goods, etc.
  1. Details of the supplies made through e-commerce operators liable to collect tax under section 52.

All supplies made through e-commerce operators liable to collect tax at source should be reported in this table.

 

Annexure 2 is divided into four parts:

  1. Basic Details: Details such as GSTIN, trade name, legal name, etc. will be auto-populated.
  2. Details of inward supplies received from a registered person, imports, and supplies received from SEZ units/developers on Bill of Entry: It requires various details such as supplies from registered persons, import of goods from SEZ, import of goods from overseas on the bill of entry.
  3. Summary of Input Tax Credit: It contains a summary of all credits accepted, rejected or pending for action on the GST Portal.
  4. ISD credits received: Details of all credits claimed from an ISD shall be reported here GSTIN-wise.

 

The new GST return mechanism will be implemented in a phased manner. It will be launched on a trial basis from July to September 2019, which will help the taxpayers to familiarize themselves with the new mechanism. This will facilitate an easy transition. From October 2019, the new return filing system will be implemented in a phased manner. However, Form GST RET-1 will mandatorily replace GSTR 3B from January 2020 for all taxpayers.