Transition Plan | New GST Return Implementation

Transition Plan | New GST Return Implementation

Implementation of new GST Return formats was finalized in the 31st GST Council meeting and earlier it was decided to implement the same from April 2019 onward on a trial basis and from July 2019 onwards on a compulsory basis. However,   New GST Return implementation could not be made in such a manner.

New GST Return Implementation

Ministry of Finance has shared a transitional plan for implementation of such new GST return formats in a phased manner vide press release dated 11th June 2019 which is as follows:

Month Phases of New GST Return format implementation
May, 2019 A prototype of the offline tool of the new return format has been shared which looks the same as the proposed online portal. The new return will have 3 components-Main Return-Form GST RET-1 and Two annexures (GST ANX-1 and GST ANX-2)
July, 2019 Uploading of the invoice using GST ANX-1 offline tool will start on trial basis. Users will be able to view and download inward supply of invoices using GST ANX-2 offline tool. Summary of Inward supply will also be available for view on online portal  
August, 2019 Facility to import purchase register in offline tool and matching of same with downloaded inward supply invoices will also be available to trace mismatches.
July-September, 2019 New GST return format in ANX-1 and ANX-2 will be available on trial basis. Such trail will have no impact on tax liability and tax credit of taxpayers.Taxpayer will be continue to file GSTR-3B and GSTR-1 in similar way.
October-December, 2019 Large Taxpayers:
1. GST ANX-1 shall be made compulsory from October, 2019.
2. GSTR-1 will get replaced by GST ANX-1
3. Large Taxpayers* will file GST ANX-1 on monthly basis compulsorily from October, 2019.
4. Large Taxpayer will continue to file their GSTR-3B on monthly basis for the month of October and November, 2019.
5. GST RET-01 of large taxpayers will become compulsory from December, 2019. It should be filed by its due date of 20th January, 2020  
Small Taxpayers:
1. Small Taxpayers** will file GST ANX-1 on quarterly basis for the quarter of October-December 2019 by the due date which fall in January, 2020.
2. Small taxpayer will stop filing FORM GSTR-3B from October, 2019. Instead they will start filing GST PMT-8 from October, 2019.
3. GST RET-01 for the quarter of October-December, 2019 will be filed by due date of 20th January, 2020.  

Common Points:
1. Invoices can be uploaded in GST ANX-1 on continuous basis by both small and large taxpayers.

2. GST ANX-2 can be viewed from October, 2019 onwards. However, action on same will not be allowed
January, 2020 All Taxpayers will be required to file GST RET-01.GSTR-3B will be completely phased out.

Transition plan can be understand with the help of below chart.

Transition Plan
Transition Plan for New GST Return

Want to know more about new GST return formats, read our post GST Returns | Normal | Sahaj | Sugam | All about New GST Returns

*Large Taxpayers– those taxpayers whose aggregate annual turnover in the previous financial year was more than Rs. 5 Crore

**Small Taxpayers- those taxpayers whose aggregate annual turnover in the previous financial year was upto Rs. 5 Crore

DISCLAIMER: The views expressed are strictly of the author and VJM & Associates LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

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