The significant difference between the new and the existing GST return system in India
On July 1, 2017, the government of India imposed the Goods and Services Tax, or GST, to streamline the country’s myriad of complex taxes and deductions. Before implementing the GST, each state in the country had created its own tax collection system with no transparency. The new GST tax plan was introduced to achieve “one nation, one tax”
Even though the Goods and Services Tax (GST) program was created to consolidate and simplify taxes on all goods and services, it also needed to be clarified. Numerous businesses and entrepreneurs struggled to adapt to the new adjustments and deemed the present GST system to need to be more straightforward.
A new GST return system was recently implemented to simplify the GST system further and speed up the GST return filing procedure. The implementation of the new GST return system was scheduled for October 2020. However, this means that the current mechanism for filing GST returns will stay unchanged until September 2020.
The differences between the current and existing GST systems:
Here are some of the most significant distinctions between the present and new GST return systems:
- The GST in its existing form will cease to exist. In the present GST return system, taxable firms had to complete many forms; the new method will only require a single return.
- The current three key GST forms, namely GSTR1, GSTR 2A, and GSTR 3B, would be eliminated. Instead, a single return form, GST RET-1, will be used. This has two annexures known as the GST ANX-1 and ANX-2 (GST).
- Out of the two new annexures, GST ANX-1 applies to imports of goods and services,outward supplies, and reverse-charged inward supplies. GST ANX-2 is applicable for inbound supply information.
- In the former GST return structure, if the taxpayer’s annual turnover exceeds Rs. 1.5 crore, he was required to file a GSTR-1 monthly. In all other instances, the taxpayer must submit a quarterly return.
With the new GST return structure, large taxpayers have a yearly turnover of more than Rs.5 crore. Therefore, they are required to submit their GST ANX-1 monthly.
- Small taxpayers (those with a turnover of five crore rupees or less) are exempt from GST registration requirements and can submit their GST ANX-1 return on a monthly or quarterly basis. The integration of a 24/7 invoice upload interface is a significant difference between the present GST return system and the new system to be implemented in October 2020. Using this interface, providers can continually upload their invoices to GST ANX-1. The respective deadlines are as follows:
- Taxpayers can now submit modification returns for the information reported on the GST ANX-1 and its attachments. Two amendment returns may be submitted during tax season. In addition, there is a mechanism for the transfer of certain GST filing documents. This is beneficial in cases where the correct document was uploaded to the incorrect table.
The new GST system is expected to make filing, managing, updating, and submitting GST returns easier and more convenient than in the past. Changes to tax filing systems, such as this one, are intended to improve and streamline the process, but they require time and patience to adapt to. In addition, in light of the frequent changes in tax filing, it is essential to safeguard your future financial demands and those of your family with the help of GST consultant in Hyderabad.