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New GST return system was commissioned to begin from October 2020. However, it has been suspended with the existing return system of GSTR-1 and GSTR-3B being improved.
In May 2019, a prototype of the offline tool of the new GST return system was shared on the GST Portal to give the users a look and feel of the tool. The look and feel of the offline tool would have been the same as that of the online portal. This article discusses the same at length.
14th March 2020*
The new GST return system will be implemented from October 2020.
The present return filing system (GSTR-1, 2A & 3B) will continue until September 2020.
*Subject to CBIC notification
The invoices which are uploaded on the portal are called uploaded invoices. Uploaded invoices are the only valid documents to claim input tax credit. Uploaded invoices shall be continuously visible to the recipient.
The invoices which are accepted by the recipient are called accepted or locked invoices. The recipient can avail credit to the extent of these invoices. The invoices which are neither rejected nor kept on pending shall be treated to be deemed acceptance.
Where the GSTIN of the invoice is wrongly filled by the supplier, the invoice would appear on the viewing facility of the taxpayer who is not eligible to take the credit. In this case, the recipient shall report such invoices as rejected invoices.
This status of invoice will be pending because of any of the three following reasons
The invoices which are not uploaded by the supplier and recipient has claimed credit are called missing invoices. The missing invoices shall be reported by the supplier in the main return for any period with interest or penalty as applicable.
Purchase invoices received by the recipient in April 2019 on which input tax credit has been availed but not uploaded by the supplier shall be reported by the recipient not later than the return of June 2019 filed in July. Information about the missing invoice uploaded by the recipient shall be made available to the supplier.
|Proposed New Return System||Existing Return System|
|Quarterly Return limit has been extended upto 5 crore||Quarterly Return filing limit is 1.5 crore|
|Profile base return is possible.||No concept of Profile base return in present System.|
|Only Uploaded Invoices by Supplier would be valid document for availing ITC.|
Receiver can take credit of invoices which are not uploaded as well, He can report the invoices as missing and the supplier has to confirm the same and pay tax along with interest
|There is no matching concept present in current system, it is written in law but recipient could take credit for all such Invoices in GSTR-3B even not reported by supplier on self declaration basis.|
|An IT tool/facility for matching of the Invoices downloaded in XL format will be available from the “Viewing facility”.||No IT tool for matching the Invoices is present.|
|If Turnover is less than 5 crore taxpayer can choose either of following:Sahaj (Only B2C)Sugam (Only B2B & B2C)Quarterly (All other Type of Supplies)||Only one Quarterly return facility in GSTR-1 is available If TO is upto 1.5 crore but GSTR-3B must be filed monthly.|
|Every taxpayer who will apply for quarterly return has to pay tax in self declaration form on a monthly basis for the first two months of the quarter.||Every Taxpayer who has applied for quarterly return has to pay tax on a monthly basis in the form of GSTR-3B.|
|For Nil Return when user has no purchase, no sales, no ITC to avail in any quarter of the Financial Year shall file one Nil return for every quarter.||When there is no Outward tax liability in this case the taxpayer will has to file NIL Return.|
|SMS Facility for filing of Return will be available for NIL/Quarterly Return.||SMS functionality is not present.|
|Taxpayer filing quarterly return shall report missing invoices in the next quarter.||NA|
To conclude with, pending clarity on ITC availability in case of missing invoices, small taxpayers will have to bear less compliance cost due to this simplification of the quarterly returns.