Indian Economy News

GST council to introduce new GST return system: Here are the details

NEW DELHI: Businesses will be able to use the new return filing forms under Goods and Services Tax (GST) on a trial basis for three months beginning July, the government said, spelling out the transition plan for the new tax return filing system on Tuesday.

Currently, companies and businesses have to file tax returns via GSTR3B or summary form and GSTR1, which entails details of outward supplies. The new system will comprise three forms -- GST ANX-1 that will capture details of outward supplies, GST ANX-2 which will be the purchase form and GST RET-1 which will be the final return form.

While the new purchase and sales forms will be available for trial during July-September, businesses will still have to file returns based on GSTR1 and GSTR3B.

“This trial would have no impact at the back end on the tax liability or input tax credit of the taxpayer. In this period, taxpayers shall continue to fulfil their compliances by filing GSTR-1 and GSTR-3B i.e. taxpayers would continue to file their outward supply details in GSTR-1 on monthly / quarterly basis and return in GSTR-3B on monthly basis," the government said.

While the new return form GST ANX -1 will be made compulsory October onwards, replacing GSTR1, the existing forms -- GSTR3B and GSTR1 -- will be phased out completely from January 2020.

“A transition period of three months to familiarise with the new development and system is quite an applaudable thought and is aligned to this government's outlook of ease of doing business." Abhishek Jain, Tax Partner, EY India, said. “With a concrete transition plan release, businesses would now need to commence work on ERP system changes, business process changes, etc to be executed for aligning disclosures with the new return."

Last month, the IT backbone, GST Network, had shared a prototype of the offline tool to give users the “look and feel" of the tool which would be similar to the online portal.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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