Topics In Demand
Notification
New

No notification found.

Changes under the new GST returns system
Changes under the new GST returns system

June 19, 2020

302

0

The New Return System under the Goods and Services Tax is due to be rolled out in October 2020, and it promises to make the filing of GST returns (that have been extremely cumbersome so far) a breeze. What are the changes that make this new system simple, convenient and efficient? Let’s find out.

HSN Code to replace HSN summary
HSN code stands for Harmonized System of Nomenclature and has been a globally accepted system for over 30 years. It is a 6 digit uniform code that classifies over 5000 products. Under the current returns system, taxpayers are required to use an HSN summary viz. a summary of all the products and services that they have sold under that filing period. Under the New Returns System, this summary will be replaced by the HSN code. This HSN code will help classify the taxpayer slab on the basis of turnover. Taxpayers can also acquire their HSN code from the GST ANX-2 (from where a supplier is required to declare their HSN code).

File returns through SMS
As a large number of taxpayers are dependent on the services of a chartered accountant to file their GST returns even when they are filing zero returns, the GST network has announced that taxpayers filing zero returns can do so using an SMS based system. The filing of the returns will still be mandatory, but the filling can be done using text messaging which will be validated using a one time password.

Reduced number of forms
One of the most challenging aspects of the current return filing system is the requirement of filing multiple forms. This system will be eradicated with the introduction of the new return system under GST. Taxpayers will only be required to fill one 9 step form called GST RET-1. This form will also have two annexures, namely ANX-1 for outward supplies and ANX-2 for inward supplies.

Changes in form fields
Apart from the reduction in the number of return forms, there will be several changes made to the form fields. For instance, under B2B supplies that are liable to a reverse charge mechanism, the taxpayer need not show the same in GST ANX-1. They will just need to declare the aggregate amount in the new return form.

Changes in frequency of filing
Taxpayers having a turnover up to Rs. 5 crores in the preceding financial year will be considered as small taxpayers and will be required to file their returns every quarter. Any turnover above this amount of Rs. 5 crores will now be classified under large taxpayers who will be required to file their returns every month.

Introducing the amendment return
Under the GST new return system, taxpayers will have the facility to amend a return, once filed. Under the current system, once a return is filed, it cannot be amended, and any errors or certification can only be made by making an amendment to those invoices in the following month’s return. Under the new return system, the taxpayer will be able to file GST RET-1A as an amendment to the original return submission.

The new return system is expected to make the filing of GST returns convenient, simple and highly efficient for both taxpayers as well as tax authorities.

For more information on GST compliance, visit https://www.avalara.com/in/en/index.html

To Know more about Avalara GST Solution please click here –

https://www.avalara.com/simplify/en/india/gst-return-filing.html


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


images
Indrani Das
Marketing Manager

© Copyright nasscom. All Rights Reserved.