New GST Return Forms – RET-1, RET-2, RET-3, ANX-I, ANX-II

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The GST Council, as per the decision taken at the 39th GST Council Meeting, has introduced a New GST Return Forms System to improvise and simplify the return filing procedure. Under the new mechanism, a taxpayer will have to file only one main called the FORM GST RET-1, which will have 2 annexures namely FORM GST ANX-1 and FORM GST ANX-2. This return will need to be filed on a monthly basis, except for small taxpayers who can opt to file the same quarterly, having a turnover up to Rs 5 crore in the preceding financial year.

The new GST return system will be implemented from October 2020 as Updated as on 14th March 2020. The present return filing system (GSTR-1, 2A & 3B) will continue until September 2020.

Before you get your hands into the prototype of new GST returns, it is recommended to know a few key aspects of new GST returns. Here are the key highlights of all-new simplified GST return which will come into effect from 1st April, 2020.

Let’s understand the different Returns Forms and Annexures introduced by GST Council in the new GST Return Forms System.

New GST Return Forms
New GST Return Forms

1. Difference between Old Vs New GST Return System

Old Return-filing System New Simplified Return System
Taxpayers considered small if turnover is up to Rs 1.5 crore in the preceding financial year, otherwise considered large taxpayersTaxpayers considered small if turnover is up to Rs 5 crore in the preceding financial year, otherwise considered large taxpayers
Multiple return forms to be filed depending on the category of taxpayers, such as – GSTR-1, GSTR-4, GSTR-5, GSTR-6, GSTR-7, etcA single simplified main return form GST RET-1 containing 2 annexures GST ANX-1 and GST ANX-2 to be filed by all categories of taxpayers
Revenue invoices can be uploaded only at the time of filing of returns of outward suppliesA mechanism for the continuous upload of revenue invoices on a real-time basis
Input tax credit could be claimed on a self-declaration basisInput tax credit can be claimed based on invoices uploaded by the supplier
Missing invoices and amendments, if any, could only be made in the return of the following tax period Missing invoices and amendments, if any, can be made by filing an Amendment Return
Taxpayers have to file GST returns until their registration has been cancelled, even if an application for cancellation of registration has been submittedRegistration will now be suspended, in cases where a taxpayer has applied for cancellation of registration, and returns will not need to be filed for this period

2. Different types of new GST Returns Forms and Annexure

Based on the size the businesses, the type of supplies, customers you deal and the geography, the GST council has designed different type of GST Returns. Sahaj, Sugam and quarterly normal returns are the quarterly return available for small taxpayers. Monthly return (Form GST RET-1) for larger taxpayers.

Let’s understand the different returns forms and annexures introduced in the new GST returns.

FormDescriptionAction
Form GST ANX- IForm GST ANX-1 is an annexure of outward supplies and inward supplies attracting reverse charge.You need to upload details of outward supplies along with purchases attracting reverse charge in FORM GST ANX – 1
Form GST ANX – IIIt’s an annexure containing details of auto-drafted inward supplies.    Form GST ANX-II is an auto-populated annexure containing the details of document uploaded by your supplier on a real-time basis.   Here you can either accept, modify or reject the invoice uploaded by your counterpart (seller) for confirming the ITC.
Form RET-1 (Monthly)Form RET-1 is a monthly return to be filed by the businesses having aggregate turnover over more than 5 Crores in a financial year.Business needs to file the monthly return by 20th of the subsequent month.
Form RET-2Form RET-2 is a quarterly return applicable for business opting Sahaj Returns (Up to 5 Crores)Business need to file the monthly return by 25th of the subsequent month following the quarter-end
Form RET-03Form RET-02 is a quarterly return applicable for business opting Sugam Returns (up to 5 Crores)Business need to file the monthly return by 25th of the subsequent month following the quarter-end
Form RET-1(Quarterly)This is similar to monthly return but applicable for business having aggregate turnover up to 5 crores.Business need to file the monthly return by 25th of the subsequent month following the quarter-end

As detailed in the above table, the main return will be supported by the annexures. Every return is supported by two annexures, one for reporting the outward supplies (liability) and the other one for inward supplies (ITC).

3. Overview of Types of new GST Returns

Types of new GST Returns

(1) Sahaj (B2C)

  • Form GST RET-2 is return form applicable for business option Sahaj returns
    Quarterly filing with self-assessed monthly payment by 20th of the subsequent month (1st and 2nd month of the quarter) via Payment Declaration challan Form GST PMT-08
  • Outward supplies details in Form GST ANX-1 are required at summary level – POS and Tax Rate-wise
  • Invoice uploaded by the Supplier will be auto-populated in inward supplies annexure (Form GST ANX-II) and ITC will be available to the extent details shown in Form GST ANX-II
  • No concept of claiming ITC missing invoices

(2) Sugam (B2C + B2B)

  • Form RET-03 is the main return to be filed by the business opting Sugam
    Quarterly filing with self-assessed monthly payment by 20th of the subsequent month (1st and 2nd month of the quarter) via Payment Declaration challan Form GST PMT-08
  • Form GST ANX-I to be submitted before filing Sugam returns
  • Based on Form GST ANX-1, outward supplies section in Sugam will be auto-populated
  • 24 / 7 upload of B2B invoices during the quarter
  • Supplies other than B2B and B2C cannot be made through Annexure
  • Invoice uploaded by the supplier will be auto-populated in the form of Inward Supplies Annexure and ITC will be available on the same
  • No concept of availing ITC on missing invoices
  • Optional to report HSN at the invoice level

(3) Quarterly Returns (B2C + B2B + all other supplies)

  • The return form and filing process are similar to monthly return except for the periodicity of return filing. Here, the main return form will be same as of monthly return i..e Form GST RET-01
  • Quarterly filing with self-assessed monthly payment by 20th of the subsequent month (1st and 2nd month of the quarter) via Payment Declaration challan Form GST PMT-08
  • Form GST ANX-1 to be submitted before filing Sugam returns
  • Based on Form GST ANX-1, outward supplies section in Sugam will be auto-populated
  • 24 / 7 upload of B2B invoices during the quarter
  • Supplies other than B2B and B2C cannot be made through Annexure
  • Invoice uploaded by the supplier will be auto-populated in the Form GST ANX-II and ITC will be available on the same
  • Businesses will be allowed to avail provisional ITC missing invoices and report the missing the invoice after 2 tax period

(4) Monthly Returns

  • Form GST RET-1 is main return form to be used for filing returns
    Monthly filing along with the payment by 20th of the subsequent month
  • Outward supplies annexure (Form GST ANX-I) to be submitted before filing the monthly returns
  • 24 / 7 upload of invoice during the month
  • Invoice uploaded by the Supplier will be auto-populated in the form of Inward Supplies Annexure (Form GST ANX-II)
  • Based on outward supplies annexure and Inward supplies Annexure, the details will be auto-populated in the monthly return
  • Real-time viewing facility of invoice uploaded by the supplier
  • Concept of reporting missing invoices by the recipient within the next 2 tax periods. This is to allow the recipient to follow up and get the missing invoice uploaded from the supplier
  • Provision to Lock, Reject and Mark the invoice as pending

(5) How to Differentiate between SUGAM, SAHAJ and Quarterly Returns?

SahajSugamQuarterly returns
Applicable to small taxpayers making only B2C suppliesApplicable to small taxpayers making supplies only to consumers and other businesses (B2C and B2B)Applicable to small taxpayers making exports, imports, supplies to B2C, B2B, SEZ, etc.
Sahaj is a predetermined profile of the quarterly return.Sugam is a predetermined profile of the quarterly return.This is not a predetermined profile but a taxpayer will have the option to create a profile to file through this return.

(6) Which Scheme to be chosen and which New GST Form to be Filled?

Scheme with New GST Form to be Filed

4. Quarterly GST Return Form RET-1

Quarterly Return form RET-1 is a return type for small taxpayers whose aggregate turnover in the financial year does not exceed 5 Crores and their outward supplies consist of B2B B2C and all other types supplies such as exports, SEZ etc.

To put it in simple words, businesses opting quarterly return form RET-1 will be allowed to make all types of outward supplies such as supplies to end consumers, unregistered business, registered business, exports, SEZ etc.

Except for the periodicity of filing return, the form type, format and details required to be furnished are similar to Monthly GST Return Form RET-1.

(1) Due Date for Filing Quarterly Return Form RET-1

The periodicity of filing quarterly return form RET-1 is similar to the Sahaj and Sugam. You need file the returns quarterly with a monthly payment of tax on a self-assessed basis. The due date to file a quarterly return in Form RET-1 is 25th of the subsequent month following the quarter-end.

The due date for filing Sugam GST returns is given below

Quarterly Return Form RET-1
QuartersDue Data
April -June25th July
July – September25th October
October- December25th January
January-March25th April

(2) Due Date for Payment of Tax for Business opting Quarterly GST Return Form RET-1

Though the return filing periodicity is quarterly, businesses opting quarterly RET-1 are required to make the monthly payment.

The tax payment is on the self-assessed basis and the payment declaration challan known as Form GST PMT -08 should be used to remit the payment. The due date to remit the monthly payment is 20th of the subsequent month. 

(3) Types of Supplies allowed under quarterly GST Return Form RET-1

Business opting quarterly return Form RET-1 will be allowed to make all types of supplies as mentioned in the below table.

Type of Outward SuppliesAllowed (Yes) / Disallowed (No)
B2B transactionsYes
B2C transactionsYes
ExportsYes
SEZ units/developersYes
Deemed ExportsYes
Outward Supply to e-Commerce OperatorsYes
Nil Rated, Exempted or Non – GSTYes
Inward supplies attracting RCMYes
Import of goods/servicesYes
Import of Goods from SEZYes

(4) Quarterly GST Return Form RET-1 Filing Process

The quarterly return form RET-1 consist of one main return, to be filed on a quarterly basis supported by two main annexures. Form GST RET-1 is the return form to be used to file Sugam returns supported by the annexures.

The details of return forms and annexures to be used for filling Sugam return is given below.

FormDescriptionAction
Form GST ANX- IForm GST ANX-1 is an annexure of outward supplies and inward supplies attracting reverse charge.You need to upload details of outward supplies along with purchases attracting reverse charge in FORM GST ANX – 1
Form GST ANX – IIIt’s an annexure containing details of auto-drafted inward supplies.    Form GST ANX-II is an auto-populated annexure containing the details document uploaded by your supplier on a real-time basis. Here you can either accept, modify or reject the invoice uploaded by your counterpart (seller) for confirming the ITC.
Form RET-1Form RET-1 is a quarterly return applicable for business opting Sugam returns (Up to 5 Crores)Business need to file the monthly return by 25th of the subsequent month following the quarter-end

(5) Format of Monthly / Quarterly (Normal) GST Return Form RET-1

GST-Return-Form-RET-1-FORMAT

(6) Annexures to FORM GST RET-1

Annexure 1 is divided into three parts:

  1. Basic Details: Details such as GSTIN, trade name, legal name, etc. will be auto-populated.
  2. Details of outward supplies, inward supplies attracting reverse charge and import of goods and services.

It contains table 3A to Table 3L which requires various details such as- 

  • Supplies made to consumers, registered persons and unregistered persons.  
  • Exports with/without payment of tax
  • Supplies to SEZ with/without payment of tax
  • Deemed exports
  • Inward supplies attracting reverse charge
  • Import of services 
  • Import of goods, etc.
  1. Details of the supplies made through e-commerce operators liable to collect tax under section 52.

All supplies made through e-commerce operators liable to collect tax at source should be reported in this table.

Annexure 2 is divided into four parts:

  1. Basic Details: Details such as GSTIN, trade name, legal name, etc. will be auto-populated.
  2. Details of inward supplies received from a registered person, imports, and supplies received from SEZ units/developers on Bill of Entry: It requires various details such as supplies from registered persons, import of goods from SEZ, import of goods from overseas on the bill of entry.
  3. Summary of Input Tax Credit: It contains a summary of all credits accepted, rejected or pending for action on the GST Portal.
  4. ISD credits received: Details of all credits claimed from an ISD shall be reported here GSTIN-wise.

5. Form GST RET-1: Sugam GST Returns

Sugam is a new GST return for small taxpayers whose aggregate turnover in the financial year does not exceed 5 Crores and their outward supplies consist of B2B as well as B2C. Businesses opting Sugam GST returns will be allowed to make outward supplies to end consumers, unregistered business and business registered under GST.

To opt Sugam return under GST, you need to satisfy the below conditions.

  • The aggregate turnover in the previous financial years is up to 5 crores
  • You are engaged in making B2B supplies (Unregistered business and end consumers) and B2B supplies (supplies to business registered under GST)

(1) Periodicity of Filing Sugam GST Return

The periodicity of Sugam return filing is on a quarterly basis with a monthly payment of tax. For businesses opting Sugam GST return, the due date to file a quarterly return is 25th of the subsequent month following the quarter-end.

The due date for filing Sugam GST returns is given below

Filing PeriodDue Data
April -June25th July
July – September25th October
October- December25th January
January-March25th April

(2) Due date for payment of tax in case of Sugam GST Return

Though the return filing periodicity is quarterly, businesses opting Sugam return are required to make the monthly payment.

The tax payment is on the self-assessed basis and the payment declaration challan known as Form GST PMT -08 should be used to remit the payment. The due date to remit the monthly payment is 20th of the subsequent month.  

Let’s understand with an example. For April to June quarter, the taxpayer needs to remit the tax of April by 20th May and May’s tax by 20th June. For June, you need to pay tax along with first 2 months adjustment (if any) with main Sugam returns.

(3) Types of Supplies allowed under Sugam GST Returns

The following table gives the list of supplies allowed and disallowed under Sugam GST returns.

Type of Outward SuppliesAllowed (Yes) / Disallowed (No)
B2B transactionsYes
B2C transactionsYes
ExportsNo
SEZ units/developersNo
Deemed ExportsNo
Outward Supply to e-Commerce OperatorsNo
Nil Rated, Exempted or Non – GSTYes
Inward supplies attracting RCMYes
Import of goods/servicesNo
Import of Goods from SEZNo

(4) Sugam GST Return Filing Process

The Sugam GST Returns consists of one main return, to be filed on a quarterly basis supported by two main annexures. Form GST RET-3 is the return form to be used to file Sugam returns supported by the annexures.

The details of return forms and annexures to be used for filling Sugam GST Return is given below.

FormDescriptionAction
Form GST ANX- IForm GST ANX-1 is an annexure of outward supplies and inward supplies attracting reverse charge.You need to upload details of outward supplies along with purchases attracting reverse charge in FORM GST ANX – 1
Form GST ANX – IIIt’s an annexure containing details of auto-drafted inward supplies.    Form GST ANX-II is an auto-populated annexure containing the details document uploaded by your supplier on a real-time basis. Here you can either accept, modify or reject the invoice uploaded by your counterpart (seller) for confirming the ITC.
Form RET-3Form RET-3 is a quarterly return applicable for business opting Sugam returns (Up to 5 Crores)Businesses need to file the monthly return by 25th of the subsequent month following the quarter-end

(5). Format of Sugam GST Returns Form GST RET-1

Format-of-GST-Sugam-Return-Form-GST-RET-1

6. Form GST RET-2: Sahaj GST Returns

Sahaj is a type of GST return for small taxpayers whose aggregate turnover in the financial year does not exceed 5 Crores and their outward supplies are of B2C nature i.e. outward supplies are made to end consumers and unregistered business.

The criteria to decide on the applicability of the return depends on the aggregate turnover and types of outward supplies you make.

  • The aggregate turnover in the previous financial year is up to 5 crores
  • You are engaged in making only B2B supplies (Unregistered business and end consumers)

If you satisfy the above two conditions, you will have an option to file Sahaj GST returns.

(1) Periodicity of filing Sahaj GST Return Form RET-2

The periodicity of Sahaj return filing is on a quarterly basis. However, the payment of tax should be made on a monthly basis.

For businesses opting Sahaj GST return, the due date to file a quarterly return is 25th of the subsequent month following the quarter-end. Following are due dates for filing Sahaj returns.

Due Date to File Sahaj GST Return
QuartersDue Data
April -June25th July
July – September25th October
October- December25th January
January-March25th April

(2) Due date for Payment of Tax in case of Sahaj GST Return

Taxpayers opting Sahaj return are required to make the monthly payment through the return filing periodicity is quarterly. The payment of tax is on the self-assessed basis and should be made through a payment declaration form known as Form GST PMT-08. The due date for monthly payment of tax for Sahaj return is 20th of succeeding month. The self-assessed payment is required only for 1st and 2nd month of the quarter and for 3rd month, and the payment with all adjustments should be made along with the returns.

(3) Sahaj GST Return Form RET-2 Filing Process

The Sahaj GST return consists of one main return, to be filed on a quarterly basis supported by two main annexures. Form GST RET-2 is the return form to be used to file Sahaj returns supported by the annexures.

The details of return forms and annexures to be used for filling Sahaj return is given below.

FormDescriptionAction
Form GST ANX- IForm GST ANX-1 is an annexure of outward supplies and inward supplies attracting reverse charge.You need to upload details of outward supplies along with purchases attracting reverse charge in FORM GST ANX – 1
Form GST ANX – IIIt’s an annexure containing details of auto-drafted inward supplies.    Form GST ANX-II is an auto-populated annexure containing the details document uploaded by your supplier on a real-time basis. Here you can either accept, modify or reject the invoice uploaded by your counterpart (seller) for confirming the ITC.
Form RET-2Form RET-02 is a quarterly return applicable for business opting Sahaj returns (Up to 5 Crores)Businesses need to file the monthly return by 25th of the subsequent month following the quarter-end

(4) Contents of Sahaj GST Return Form RET-2

TableNameDetails
Table 1 and 2Basic detailsGSTIN, trade name, legal name, ARN, and the date of filing are auto-populated.
Table 3Summary of outward supplies and inward supplies attracting a reverse chargeDetails of outward supplies to consumers and unregistered persons and inward supplies on which reverse charge is applicable will be auto-populated in this table from Annexure 1. Details about advances and liabilities pertaining to prior period need to be inputted.
Table 4Summary of inward supplies for claiming ITCAll the details will get auto-populated in this table from Annexure 1 and 2. Details about ITC reversal needs to be manually inputted.
Table 5Amount of TDS/TCS credit received in electronic cash ledgerAmounts will be credited in the electronic cash ledger based on returns filed by diductors in Form GSTR -7 and GSTR-8.
Table 6Interest and late fee liabilityInterest and late filing fee arising due to the late filing of the return, late payment of taxes and uploading of preceding period invoices will be auto-calculated by the system. Any other interest payment liability should be self-assessed by the taxpayer.
Table 7Payment of taxThe taxpayer can make payment by utilizing ITC and then the balance can be paid in cash. However, payment arising due to reverse charge, interest, and penalty should be compulsorily paid in cash.
Table 8Refund claimed from electronic cash ledgerThe details will be auto-populated from electronic cash ledger.
Table 9VerificationA taxpayer has to verify the information provided by signing the return and filing the same.

IMPORATANT NOTE:

  1. A taxpayer who has made supplies to consumers and un-registered persons (B2C supplies) in the domestic market can only opt to file this return.
  2. For inter-state outward supplies made during the tax period, place of Supply (POS) will be reported.
  3. Input tax credit availed earlier during the first two months of the quarter will be adjusted from the claim. If balance turns out to be negative, then it will be added to the liability for the same quarter.
  4. Tax paid during the first two months of the quarter will be adjusted against the total liability of the quarter.
  5. Payment can be made out of cash or credit as per rules.
  6. Reversal of credit under rule 37, 39, 42 & 43 shall be reported as a net of reclaimed ITC if any. Ineligible credit shall also be reported under reversal.
  7. Adjustment, if any due to transition from the composition scheme or otherwise shall be reported in table 4 for accounting into ITC.
  8. At least, four-digit level Reporting of HSN code will be mandatory.
  9. A taxpayer can file ‘Nil’ return only if Annexure 1 has not been uploaded and no details are auto-populated in Annexure 2.

(5) Invoice Upload System in case of Sahaj GST Return Form RET-2

The recipients from these small taxpayers can avail input tax credit based on the invoice uploaded by the supplier and therefore the small taxpayers would be given facility to continuously upload invoices in the normal course. The invoices uploaded by 10th of the following month would be available as input tax credit to the recipient in the relevant month similar to a large taxpayer who files the monthly returns.

(6) How to File Sahaj GST Return in Form RET-2

The details of outward supplies in GST Sahaj form are required only at a summary level. This is because GST Sahaj is applicable only if you are making B2C supplies and your customer (the buyer) will not be in a position to claim ITC on the supplies made by you.

The GST Sahaj return filing cycle through Form RET-02 is explained with an illustration.

How to file Sahaj return in form RET-2

We have considered the April-June, 2019 to explain the GST Sahaj return filing cycle. In the above illustration:

  • The taxpayer makes the self-assessed payment for the month of April 2019 and May 2019 using Payment Declaration Form GST PMT-08
  • On completion of the quarter April to June 2019, GST Sahaj return needs to be filed by 20th of July 2019 with the payment of Tax
  •  The taxpayer needs to furnish the consolidated outward supplies details at rate-wise (5%, 12% etc.) and place of supply-wise in Form GST ANX-1. This, in turn, gets auto-populated into the Sahaj return Form GST RET-2
  • Input Tax credit details will be auto populated in Sahaj return form RET-2
  • As illustrated, as and when the invoices are uploaded by the supplier, details of ITC will be auto-captured in inward supplies annexure ‘ANX-02’ and which in turn gets auto-populated in GST Sahaj return form.
  • Remember, Sahaj returns forms will not have a concept of claiming and reporting ITC on missing invoices which supplier has not uploaded. You can claim the ITC only to the extent of invoice uploaded by the supplier
  • Once the required details are furnished in GST Sahaj return, the next step is to make payment
  • The tax payment here includes:
    • Tax payable for supplies made during 3rd month of the quarter
    • Adjustment due to the difference in tax paid on the self-assessed basis in the first and second month versus the outward supplies’ details declared in the Sahaj return.
    • Adjustment due to ITC claimed on self-assessed basis versus the auto-populated ITC available in inward supplies annexure.
  • Once the tax payment is done, you can submit and file the GST Sahaj returns.

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