New GST Returns – Overview, Forms, Invoices, ITC
GST Services
The new GST returns system is now live, and businesses need to understand the changes.
This blog post will give you an overview of the new GST returns, including the new forms, invoices, and ITC.
We'll also tell you what the new system means for businesses and when it will be applicable.
GST Returns – Overview
The Goods and Services Tax (GST) is a tax on the supply of goods and services in India.
It is a destination-based tax, which means that it is levied on the place of consumption. The GST was introduced on 1 July 2017.
GST returns are filings that taxpayers must make to the authorities to declare their GST liability.
These returns have to be filed periodically, and the frequency depends on the taxpayer's category.
For instance, monthly filers include those who are engaged in interstate trade, while quarterly filers include small taxpayers with an annual turnover of up to Rs 5 crore.
Annual filers include those with an annual turnover of more than Rs 5 crore.
New GST Returns Forms
As of 2020, businesses in India are required to file their GST returns using one of the new GST return forms.
The type of form that a business must file depends on its turnover and whether they are registered under the composition scheme.
GST return forms are:
Details of all supplies made, input tax credits claimed, tax payments, and any applicable interest will be included in the main return GST RET-1.
The GST ANX-1 and GST ANX-2 annexure forms will be included with this return.
With the exception of B2C supplies, all outbound supplies, inward supplies subject to reverse charge, and imports of goods and services must be reported invoice-by-invoice and in real-time using the GST ANX-1 (Annexure of Outward Supplies).
Details of all inward supplies will be reported in GST ANX-2 (Annexure of Inward Supplies).
Most of these details will be generated automatically from the information suppliers upload to their GST ANX-1.
The supply recipient will be able to act on these automatically generated documents,
GST Invoices
To claim an input tax credit (ITC), businesses must issue invoices that comply with the requirements of the GST law.
The invoice must contain certain prescribed information, such as the supplier's name and address, the supplier's GSTIN, a description of the goods or services supplied, the quantity supplied, the rate of GST charged, and the amount of ITC claimed.
Businesses can issue either a tax invoice or a credit note to their customers. A tax invoice is issued when supplies are made, and ITC can be claimed.
A credit note is issued when there is a decrease in the value of supplies or when the customer returns supplies.
Invoices can be issued either manually or through an automated system. Businesses must use pre-printed stationery containing all the required information if they choose to issue invoices manually.
If businesses choose to use an automated system, they must ensure that it generates invoices that comply with the GST law.
ITC
Input tax credit (ITC) is a key concept under the GST regime. It allows businesses to offset the GST paid on their inputs (i.e. raw materials, goods and services) against the GST payable on their outputs (i.e. sales of goods and services).
ITC can only be claimed if businesses have valid invoices for their inputs. Businesses must maintain proper records of their ITC to claim it.
They should keep track of the invoices they receive from their suppliers and the invoices they issue to their customers.
When claiming ITC, businesses must submit these invoices to the tax authorities.
There are certain restrictions on ITC that businesses should be aware of. ITC can only be claimed on inputs that are used for business purposes.
Inputs used for personal consumption or sold, given away or scrapped are not eligible for ITC.
Additionally, ITC cannot be claimed on inputs that are used to create exempt supplies (i.e. supplies that are not subject to GST).
If you have any questions about claiming ITC, you should speak to a qualified tax professional.
New GST Return System
The Indian government has introduced a new GST returns filing system for businesses.
The type of return a business must file depends on its turnover and whether they are registered under the composition scheme.
The new GST returns system is designed to be more user-friendly and efficient than the previous system.
It is hoped that it will help businesses to comply with their GST obligations and make it easier for them to claim input tax credits (ITCs).
Under the new system, businesses will have to file their returns electronically through the GST Common Portal.
To claim them, they will also be required to maintain proper records of their ITCs.
There are certain restrictions on ITCs that businesses should be aware of, such as they can only be claimed on inputs that are used for business purposes, and inputs that are used for personal consumption or sold, given away or scrapped are not eligible for ITC.
The government has also introduced a new invoicing system for businesses. Businesses can issue either a tax invoice or a credit note to their customers.
A tax invoice is issued when supplies are made, and ITC can be claimed. A credit note is issued when there is a decrease in the value of supplies or when the customer returns supplies.
Invoices can be issued either manually or through an automated system. Businesses must use pre-printed stationery containing all the required information if they choose to issue invoices manually.
If businesses choose to use an automated system, they must ensure that it generates invoices that comply with the GST law.
FAQs Related to New GST Returns
1. What is the new GST return Applicability?
The new GST return filing system applies to all businesses, regardless of their turnover.
2. What are the Types of GST Returns?
There are 13 returns under GST.
- GSTR-1
- GSTR-3B
- GSTR-4
- GSTR-5
- GSTR-5A
- GSTR-6
- GSTR-7
- GSTR-8
- GSTR-9
- GSTR-10
- GSTR-11
- CMP-08
- ITC-04.
3. How to File GST Returns?
GST is a tax that applies to most goods and services sold in India. It was introduced on July 1, 2017, to streamline the taxation process and make it more equitable for both businesses and consumers.
4. How do you file GST returns?
If you are a business owner selling taxable goods or services in India, you must file an Annual Return (AR) every year. The return must be filed on or before March 31st of the following calendar year.
You will also need to submit certain documents along with your return, such as invoices and sales receipts.
You can also use e-file if you have an internet connection and access to a software program that can help prepare your AR.
This option is available through various online portals or software applications offered by Government agencies or private vendors. If filing electronically isn't convenient for you, then paper filing may also be possible - keep in mind that it takes longer to process returns this way!
Contact Us for GST Compliance, GST Consultant & GST Services in Delhi, Noida, Gurgaon, and all across India: write to us at accounts@especia.co.in. Or Call On :(+91)-9711021268 +91-9310165114
