New Returns under GST

As we already know that new returns are going to replace the old ones.Under new regime of GST Return system, first of all we have to categorize the tax payers on the basis of previous year's turnover.

There will be two types of tax payers:

1. Large Taxpayers                2. Small Tax payers

1. Large Taxpayers: Those taxpayers whose previous year's turnover is more than Rs. 5 crores come under this category.They are liable to file Monthly Returns. They can file only Normal Returns and would not have the option to opt for Sehaj & Sugam.HSN is mandatory for large taxpayers.

2. Small Taxpayers: Those taxpayers whose previous year's turnover is Rs. 5 crores or below Rs. 5 crores will be categorized as small taxpayers.They will have the option to file Quarterly Return.They will have the option to choose to file any return out of the three available on portal i.e., RET-1/RET-2 Sehaj(only B2C)/RET-3(B2B & B2C) Sugam .Even though they can file return quarterly,they will have to pay taxes monthly.HSN is not mandatory to small taxpayers using PMT-08.

3.Nil filers of Return: Simple SMS is required.If we will file Nil return from GST portal , it will take you directly to Signature Tab and thus avoiding from irrelevant activities.

In nutshell two tests are required:

1.....to check turnover of previous year 

2.... type of outward and inward supply done by organization. Sehaj  if there is B2B purchase & B2C supply. Sugam is chosen if there is B2B purchase & supply is both B2B & B2C. For rest cases only RET-1 option is left.

3.    Taxpayers opting Sehaj or Sugam can go for RET-1 also if they desire.They can file it on quarterly basis except payment of taxes are to be done monthly only.

Difference between Old and New GST returns

1. Taxpayers are considered small if the turnover is up to Rs.1.5 crores under old system but taxpayers will be considered small if the turnover is up to Rs. 5 crores.

2. Under old system,multiple returns were to be filed such as GSTR-1,GSTR-3B,GSTR-4 etc., but under new system there will be one main return RET-1 along with two annexures ANX-1 & ANX-2.There is no separate requirement to file ANX-1 & ANX-2.They will be assumed to be filed on filing of RET-1/2/3

3. We could upload invoices at the time of filing returns under old system but under new system,we can upload invoices continuously on real time basis.

4. We were able to get ITC on self-declaration basis but now we can claim ITC on the basis of invoices uploaded by supplier.

5. Earlier, If there were any amendments needed to be made,those were possible in the return of following tax period but now amendments of missing invoices will be possible through by filing an amendment return.

6.Under old system,Taxpayers will have to file returns till the cancellation of registration even though the client has applied for cancellation.But under new system, registration will be suspended when we apply for cancellation and there will no need to file returns till cancellation.

7. Under old system we had to report liability in GSTR-1,get information of ITC in GSTR-2A,had to create challan on portal which was being displayed on electronic cash ledger and payment was done through GSTR-3B by utilizing cash and ITC both.But under new system we will report liability in ANX-1,will get information on ITC in ANX-2,electronic cash ledger will be same and payment will be done through RET-1/2/3 

8. In current system of GSTR-1 & 3B,Taxpayers can not enter negative figures. But this has been fixed in new return system.

In conclusion, so many changes are being planned through new GST Returns and we can hope that these changes will be resulted as positive effects in the ways of taxpayers and they may be able to find GST system a helpful tool and not a burden on their head.