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GST Detailed Return – GST RET 1 – Format, Eligibility & Rule

Introduction:

The GST Council has introduced a New Return System to improvise and simplify the return filing procedure in late 2018. The prototype and trial version was recently introduced in July 2019. Currently, companies are required to file two monthly returns GSTR-3B and GSTR-1 providing details of outward and inward supplies, and the payment of tax.

However, 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.

What is GST RET 1?

FORM GST RET 1 (or its simpler variations) is the main GST return to be filed by all regular taxpayers. Most of RET 1’s details are auto populated from its annexures ANX 1 and ANX 2.

What does these annexures contain?

  • FORM GST ANX-1 will have details of outward supplies, inward supplies on which reverse charge is applicable, and import of goods and services. These details will be reported invoice-wise (except for B2C supplies) on a real-time basis.
    FORM GST ANX-2 will have details of inward supplies, for the recipient of supplies to take action by either accepting or rejecting these documents, or marking them as pending, for action to be taken later.

What are the benefits of this Form?

The new simplified returns under GST is based on the concept of a single return, and the frequency of filing the same will depend on the turnover of the entity.

Below are some of the benefits of simplified returns which makes its introduction a necessary move:

  • Simplified returns are profile based returns.
    • A lot of supplies come under the ambit of GST.
    • However, most of the dealers deal with only a few supplies.
    • Thus, a profiling questionnaire will enable the GST return format to display only those information fields that are relevant to the taxpayer’s profile.
  • Invoices can be uploaded by the supplier on a continuous and real-time basis, which will be available for action to be taken by the recipient.
  • The simplification in forms and filing procedure will lead to lower compliance costs.
  • Taxpayers will be able to amend their returns once filed, and file up to two amendment returns for a tax period.

What is the frequency of Filing FORM GST RET-1?

  • A normal taxpayer making B2C supplies, B2B supplies, inward supplies attracting reverse charge mechanism, NIL rated, zero-rated or supplies though e-commerce operators can file GST RET-1.
    Large taxpayers will have to file this return monthly, whereas small taxpayers can opt to file the return on a quarterly basis.

What are the contents of FORM GST RET-1?

The new GST RET-1 contains 9 parts:

  1. GSTIN: A taxpayer needs to input the GSTIN.
  2. Basis details: Basic details such as trade name, legal name, etc. will be auto-populated on the basis of the GSTIN.
  3. Summary of outward supplies, inward supplies attracting reverse charge, debit/credit notes and tax liability: This table requires details of all outward supplies made to consumers and unregistered persons. It also requires details of all inward supplies on which reverse charge mechanism is applicable. The details in this table will get auto-populated from Annexures.
  • Details of outward supplies
  • Details of inward supplies attracting reverse charge
  • Details of debit/credit notes issued, advances received/adjusted and other reduction in liabilities
  • Details of supplies having no liability
  • Total value and tax liability
  1. Summary of inward supplies for claiming ITC: This table requires details of all purchases in order to claim ITC. These details will get auto-populated from Annexures. This summary is divided into five parts:
  • Details of ITC based on auto-population from FORM GST ANX-1 and action taken in FORM GST ANX-2 and other claims
  • Details of reversals of credit
  • Net input tax credit available after reversal
  • ITC declared during the first two months of the quarter
  • Net ITC available
  1. Amount of TDS and TCS credit received in electronic cash ledger: Amounts will be credited in the electronic cash ledger based on returns filed by TDS deductor in Form GSTR -7 and TCS collectors in Form GSTR-8.
  2. Interest and late fee liability details: The system auto-calculates interest and late filing fees arising due to late filing of the return. All other interest liabilities need to be self-assessed by the taxpayer.
  3. Payment of tax: A taxpayer needs to make payment of tax liability in cash after utilizing the ITC. However, any payment of interest or penalty should be made in cash.
  4. Refund claimed from electronic cash ledger: This table will be auto-populated from the electronic cash ledger.
  5. Verification: A taxpayer has to verify the information provided in all of the above tables by clicking on the checkbox and signing the return. A taxpayer can proceed to file the return only after verifying the details.

 

To know more find your GST_RET_1 Form here :  GST_RETURN_RET_1