GST Network has recently launched an interactive return filing prototype so that stakeholders can get a feel of what the demo tool looks like. Stakeholders have been asked to share their feedback before it goes live. GSTN aims to launch this prototype later this year officially.
The functionality of this prototype includes – invoice upload, drop-down menus, and purchase register upload to verify inward supplies (system created). As per this new GST return filing system, a taxpayer will need to file GST RET-1 (Normal)/Form GST RET-2 (Sahaj)/Form GST RET-3 (Sugam) either on a quarterly or a monthly basis.
As part of these returns, GST ANX-1 (Annexure of supplies) and GST ANX-2 (Annexure of inward supplies) will have to be filed. In GST ANX-1, all of the outward supplies will be mentioned. On the other hand, GST ANX-2 will have auto-populated information regarding inward supplies mostly from the GST ANX-1 of the supplier. A supplier will need to do a detailed return filing via GST RET-1 form.
Filing of the form GST RET-2 (Sahaj) will apply only to businesses which supply to consumers (B2C). This form will comprise information regarding outward and inward supplies, which attract reverse charge in addition to the summary of inward supplies, which are needed for making ITC (Input Tax Credit) claims.
Companies that supply to consumers (B2C) and businesses (B2B) will need to file the form GST RET-3 (Sugam). This form will comprise tax payment details, interest due information, the summary of inward supplies for making ITC claims, the summary of supplies rendered, and tax liability.
Stakeholders can use the government website to share their feedback. GSTN will take care of all the technical aspects related to the GST regime. With this new format for return filing, the requirement of filing the final sales return GSTR-1 and the summary sales return GSTR-3B will be replaced.
Last year, the GST Council decided to release the GST forms – Sugam and Sahaj starting from 1 April 2019 on a pilot basis. On the other hand, mandatory filings of these forms were supposed to kick in starting from July. Nevertheless, the pilot project was put on hold because of systems not being finalised.