Roadmap to the new GST Return system

The GST Council in order to strengthen the GST regime and to aid taxpayers decided in its 31^st meeting to introduce new GST return system. A transition plan has been set out in order to facilitate drift towards the new return system. The transition plan enumerates the following aspects:

1. There are three main components to the new system- one main return in Form GST RET-1 and two annexures in Form GST ANX-1 and Form GST ANX-2.  A model has previously issued in May, 2019 on the common portal regarding the offline tool, which would be same as online portal, to provide users the feel and look of the tool.
2. For the purpose of orientation of the offline tool, users from July, 2019 would be able to upload invoices through Form GST ANX-1 and would be able to view and download the invoices of inward supplies through Form GST ANX-2 on trial basis.
3. Users would be able to view the summary of inward supply invoices on the common portal online and would also be able to download their purchase register in offline tool which would facilitate identification of disparities between the purchase register and downloaded invoices of inward supply. This facility would be available from August, 2019.
4. The new return system from July to September, 2019 will be available only on trial basis as to make taxpayers familiar to the new system. This trial period does not exempt taxpayers from filing Form GSTR-1 and Form GSTR-3B i.e. taxpayers are required to file Form GSTR-1 for the details outward supply and return in Form GSTR-3B. Non-filing of these returns shall attract penal provisions under GST Act.
5. The new GST return system shall be compulsorily made applicable from October, 2019 which will replace Form GSTR-1 with Form GST ANX-1.
6. All the large taxpayers whose aggregate turnover is more than Rs. 5 Crore in the previous financial year would be required to file Form GST ANX-1 on monthly basis from October, 2019 onwards. However, small taxpayers whose aggregate annual turnover is below Rs. 5 Crore in the previous financial year shall be required to file Form GST ANX-1 for the first time in January, 2020 for the quarter October to December, 2019 and thereafter quarterly.
7. All the taxpayers whether large or small will be able to upload invoices in Form GST ANX-1 from October, 2019 and Form GST ANX-2 may also be viewed but no action shall be allowed on the form.
8. The large taxpayers would continue to file Form GSTR-3B for the month of October and November, 2019 and would file their first Form GST RET-01 for the month of December, 2019 by 20^th January, 2020.
9. From October, 2019, small taxpayers would start filing Form GST PMT-08 instead of Form GSTR-3B and would file their first Form GST RET-01 for the quarter October to December, 2019 from 20^th January, 2020.
10. Form GST RET-01 shall be filed by all taxpayers from January, 2020 onwards and Form GSTR-3B shall be entirely be eliminated.

The government will also issue separate instructions for filing and processing of refund applications for the period from October to December, 2019.

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