CA Pooja Madhan

In an effort to simplify the filing process and increase tax compliance under GST, the GST Council has approved a new return filing process. This filing process is expected to come into effect from 1st April, 2019. Here’s what you need to know about the new simplified GST returns.

Simplified Returns for Registered Taxpayers

  1. All GST registered taxpayers except ISD providers, small taxpayers, composition dealers will be required to file only one monthly return.
  1. The return will have two tables; one for reporting outward supplies and the other for availing input tax credit based on the invoices that the supplier uploads.
  1. The date of filing will depend on the business’ turnover, in order to avoid technical issues arising out of heavy load on due dates.
  1. The taxpayer can create a profile according to the nature of supplies made and received. The taxpayer will be required to file the fields according to his nature of business.
  1. Taxpayers who have nil inward and outward supplies during the taxable period will be able file their nil returns through an sms.

Simplified Returns for Composition dealers

Dealers who have registered themselves under composition scheme and nil taxpayers will be able to file returns quarterly.

Simplified Returns for Small taxpayers

  1. Small taxpayers having annual turnover upto Rs. 5 crore can file their returns quarterly. This option will be available to small traders who make B2C or B2B and B2C suppliers.
  1. The simplified returns for small taxpayers will be called Sahaj and Sugam. This return has been designed in a way that it requires fewer information than the regular returns.

Uploading Invoices

  1. The seller can upload invoices at any time of the month in order to allow the buyers to avail input tax credit.
  1. The buyer can view or lock the invoices as and when the seller uploads them.
  1. The buyer is not required to upload their purchase invoice.
  1. Sellers who have defaulted on tax payments above a certain amount will be prevented from uploading invoices to avail input tax credit.

Invoicing for B2B Dealers

  1. If you are B2B dealer, you are required to fill out invoice – wise details of your supply while filing. Based on these and the invoices uploaded by your seller, the system will calculated your tax liability automatically.
  1. Invoices related to B2B transactions need to have a 4-digit or higher HSN number.

Process of Tax Recovery

  1. In cases where the seller has not paid their tax due, the buyer’s input tax credit will not be reversed automatically.
  1. In exceptional cases like a missing dealer, closure of a supplier’s business, or suppliers having inadequate assets, the revenue tax authority will decide whether to reverse the buyer’s credits or not.

Information in the Return

The recovery or reversal of input tax credit will be done after the tax authority issues a notice and order. The entire process will be automated and handled online.