The GST Council has introduced a new return filing system with one main return FORM GST RET-1 and two Annexures.
In FORM GST ANX-1, a taxpayer has to report details of all outward supplies, inward supplies on a reverse charge basis and import of goods and services in this Annexure.
In FORM GST ANX-2, a taxpayer has to report details of all inward supplies in this Annexure.
A taxpayer is required to file this new return on a monthly basis. Small taxpayers with a turnover of up to Rs.5 crores have an option to file this return quarterly.
1. What is Amendment of Returns?
One of the key changes introduced in the new return filing system is the facility to amend a return, once filed. Currently, GST returns cannot be amended, and errors, if any, can only be rectified by making an amendment to those particular invoices/details in the subsequent month’s return.
However, now, a taxpayer can file FORM GST RET-1A as an amendment return to the original return.
2. What are the advantages of Amendment of Returns?
Some of the advantages of filing amendment returns are:
- It can be filed for a tax period i.e monthly or quarterly. Thus, mistakes identified can be corrected on a timely basis.
- Any shortfall in payment of liability arising due to the filing of amendment return can be paid along with this return. Thus, interest on delayed payment can be avoided as the amendment return can be filed in the same tax period.
- Up to two amendment returns can be filed for each tax period, which would definitely save a taxpayer from unnecessary difficulties in case of errors committed in the original or amended return.
3. How can a return be amended and how many times can a return be amended?
Details entered by a taxpayer in the main return which was not auto-populated can be edited in the amendment return. Payment of liability arising due to amended return can be paid along with GST RET-1A. However, no refund will be given. Any negative liability will get carried forwarded to the main return of the next tax period.
A taxpayer can file two amendment returns for each tax period.
4. What are the Contents of Form GST RET-1A?
FORM GST RET-1A is the return amending FORM GST RET-1. The filing process is similar to that of FORM GST RET-1.
FORM GST RET-1A is divided into 4 parts:
1. GSTIN: A taxpayer needs to input the GSTIN.
2. Basic details: Basic details such as trade name, legal name, ARN, and the date of filing will be auto-populated.
3. Amendment to a summary of outward supplies, inward supplies attracting a reverse charge and tax liability:
Please note: It is presumed that GST ANX-1A (i.e. the annexure to FORM GST RET-1A) will be deemed to have been filed upon filing of return in FORM GST RET-1A. The filing process will be similar to the process of filing of the original FORM GST ANX-1.
|A||Details of amendment to outward supplies||Below details will be auto-populated from GST ANX-1A:
The taxpayer needs to input the below details:
|B||Details of amendment to inward supplies attracting reverse charge||Below details will be auto-populated from GST ANX-1A:
|C||Details of amendment to adjustment of liability||The taxpayer needs to input the below details:
|D||Details of amendment to supplies having no liability||The taxpayer needs to input the below details:
|E||Total value and tax liability||It is a sum total of A, B, C and D above.|
4. Amendment to summary of inward supplies for claiming input tax credit (ITC):
|A||Details of amendment to ITC based on auto-population from GST ANX-1A||Below details will be auto-populated from GST ANX-1A:
The taxpayer needs to input the below details:
|B||Details of amendment to reversals of credit||The taxpayer needs to input the below details:
|C||Net ITC available||It is a difference between A and B above.|
Note: A taxpayer has to separately disclose input tax credit on capital goods and services out of C above.
5. Interest and late fees: The system will auto calculate the following two liabilities:
- Fee for making amendments above the prescribed limits in the rules
- Interest on account of upward revision of tax liability
The taxpayer will have to self assess the amount of interest on account of reversal of input tax credit and other interest liability if any.
6. Payment of Tax: Payment process is similar to that of main return. ITC available in the electronic credit ledger can be utilized for payment of the liability.
7. Verification: A taxpayer has to verify the information provided in all of the above tables and signing the return. A taxpayer can proceed to file the return only after verifying the details.
5. What is the format of FORM GST RET-1A?