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Only quarterly return filing for 70% GST taxpayers from April

Taxpayers with annual turnover less than Rs 5 crore will be able to opt for quarterly filing of returns and monthly payment of tax under the new proposed returns filing system under GST.

By: ENS Economic Bureau | New Delhi | Updated: October 2, 2019 3:32:30 am
For those with annual turnover above Rs 5 crore, estimated to be only 7.06 per cent of the total GST taxpayers, the returns would need to be filed on a monthly basis.

Over 70 per cent of the Goods and Services Tax (GST) taxpayers having annual turnover less than Rs 5 crore would need to file only quarterly returns from April 1, 2020, while around 22 per cent of the total taxpayers with nil turnover will be able to file the GST return through a simple SMS.

Taxpayers with annual turnover less than Rs 5 crore will be able to opt for quarterly filing of returns and monthly payment of tax under the new proposed returns filing system under GST. For those with annual turnover above Rs 5 crore, estimated to be only 7.06 per cent of the total GST taxpayers, the returns would need to be filed on a monthly basis.

Taxpayers with nil turnover would need to just send an SMS, following which an OTP would be sent to them for confirmation and this would enable return filing for them, GST Network (GSTN) CEO Prakash Kumar said Tuesday.

Outreach workshops for the new proposed GST returns filing system have already been held in 19 cities to make taxpayers as well as tax officials aware about the features of the new returns system, he added.

As per the breakup of taxpayer base under GST, 7.06 per cent taxpayers have annual turnover over Rs 5 crore and contribute almost 85 per cent of the GST revenue. Under the new returns filing system, these taxpayers would need to file RET-1 by the 20th of every month.

Other taxpayers with turnover below Rs 5 crore will need to file Sahaj return (B2C supplies) or Sugam return (B2C and B2B supplies) and their filing date would be the 25th of every month.

Under the new returns filing system, it is proposed that the taxpayer will file RET-1/2/3, will pay the auto-populated liability from ANX-1 by utilising cash and ITC (auto-populated through ANX-2) both. The GSTN has also proposed doing away with the facility to amend invoices by the buyer while filing returns. There would be only unidirectional flow of returns, with supplier uploading the invoices in ANX-1 and the recipient accepting or rejecting them in ANX-2. At present, supplier files GSTR-1, recipient views the invoices in GSTR-2, edits and sends them back. This was creating multiple layers of to and fro of editing, therefore this feature is proposed to be done away with in the new system, GSTN officials said.

The new returns filing system will be rolled out from April 1 next year. GST Council in its meeting last month approved further deferment of mandatory rollout of the new returns filing system to April 1, 2020 from the earlier proposed date of January 1, 2020.

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