GST Network released the revised return forms which businesses would need to comply with from this year. The new GST returns would be implemented on a pilot basis from April 1, 2019 and will be made mandatory from July 1, 2019 according to the decision by the GST Council. Since the new returns would be run on a pilot basis, the existing return formats (i.e. GSTR-3B) will be continued to be filed for the quarter 1, FY 2019-20.

The GST Council had suspended GSTR-2, a purchase return, and GSTR-3, input output return, because of the complex form structure. On the other hand, GSTR-1, a sale-return, and GSTR-3B, summary of input-output return, remain. The new forms are uploaded following an exercise to simplify the returns under GST.

1. Simplified Return Forms

The new return formats would make the compliance process simpler for the smallest of businesses wherein taxpayers up to a turnover of Rs. 5 crores would have an option to file any of the three forms.

Normal Return – FORM GST RET-1 quarterly return shall be akin to the monthly except that it has been simplified and shall not have the compliance requirement in relation to –

1. Missing and pending invoices as small taxpayers do not use these procedures in their inventory management.

2. Supplies such as non-GST supply, exempted supply etc as they do not create any liability.

3. The details of input tax credit on capital goods credit shall also not be required to be filled.

This information shall be required to be filled in the Annual Return. Small taxpayers who would like to facility of missing and pending invoice may file the monthly return.

Sahaj Return – FORM GST RET-2 (Quarterly)

Outward supply under B2C category and inward supplies attracting reverse charge only.

Sugam Return – FORM GST RET-3 (Quarterly)

1. Outward supply under B2C and B2B category and inward supplies attracting reverse charge only these tax returns are being introduced to free the small taxpayers from the hassles of taxation, thereby helping them to focus on the growth of their business.

2. Also, HSN wise details need to be provided at the invoice level rather than summary level. In addition, while details at 4-digit HSN codes are required in the current format, the new format would need those details at the 6-digit HSN level.

For the Revenue Department, the new format would help in matching the invoices of the seller and the purchaser and would help the department check evasion to a great extent.