New GST e-learning certification by ClearTax

The present GST return system had a manual process of fetching the sales invoice data for the purpose of matching with the ITC reported by taxpayers. Whereas the New GST return system automates the process to greater extent giving visibility of the process to both the parties -suppliers and the recipients.

At present, GST returns requires details of sales and exports to be reported in GSTR-1 return, as well as the summary ITC and tax to be declared in GSTR-3B for regular taxpayers.

The ITC amount is claimed on a provisional basis and involves reconciliation with GSTR-2A. The reconciliation results in either excess credit claims or short of claims. The taxpayer can adjust this difference in subsequent returns earlier of two dates for a given financial year. 1) Due date of filing GSTR-3B for September of the next year or 2) Due date of Annual returns for that financial year.

New GST return is aimed to simplify the current return filing process which has multiple returns. The new system and format of the GST returns was initially introduced in the 28th GST Council meeting meeting held on 21 July, 2018.The return prototype gave a concrete picture of how the returns look like in actual and the detailed process of filing too.

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.