GST 2.0 : New GST Return Filing System

It almost have been 2 years since GST has come replacing the earlier various kind of indirect taxes like VAT, Excise Duty, Sales Tax, Service Tax etc. Introduction of GST in July-2017 caused many difficulties as the new “One Nation One Tax” seemed quite complex to be executed at initial level. but gradually the government kept on making it easy with the help of GST council.

Currently, normal taxpayers files GSTR-1 showing the tax liability of quarter or month ended  on quarterly or monthly basis depending on the turnover threshold of 1.5 Crore.
And payment of tax is done on every 20thday of next month through filing GSTR-3B describing tax liability and claim of input tax credit on taxable goods and services purchased during the previous month.

The major drawback of the GSTR-1 & GSTR-3B system is that the format of returns required every information which are completely irrelevant for small taxpayers. There were many other reasons for updating the GST return filing for easy compliance by taxpayers.

New GST Returns & Significant Changes:

Most significant change made by introducing new GST returns is bifurcation made between Small Taxpayers and Large Taxpayers. In earlier returns, the taxpayers having 1.5 Crores was known as small taxpayers and taxpayer above that limit was known as Large taxpayers and accordingly GSTR-1 filing frequency was decided.(i.e, quarterly or monthly).

In new returns criteria of Small and Large taxpayers will be changed; taxpayers having turnover upto Rs. 5 Crore will known as Small Taxpayers and the same having turnover more than Rs. 5 Crore., will be known as Large Taxpayers.


GSTR-1 in new return filing system will be replaced by three type of return namely GST-RET-1, GST-RET-2(SAHAJ) & GST-RET-3(SUGAM).


This is return almost like GSTR-1 which requires every fraction of information. Filing of RET-1 is mandatory for large taxpayers having turnover more than 5 Crore on monthly basis. This return allows taxpayer to furnish every kind of information like B2B, B2C, Exports, Imports, Unregistered Purchase, transactions with SEZ.

GST-RET-2 (Sahaj):

This return is introduced for small taxpayers who are involved in B2C transactions only; for easy compliance of indirect tax payment and return-filing process. It only allows to furnish B2C supply made and Inward supply on which tax is paid on Reverse Charge Mechanism.


There is no much difference between Sahaj and Sugam GST return. Sugam allows B2B transactions too which Sahaj return doesn’t. In other words, Sugam allows both B2B and B2C transactions for small taxpayers.

GST ANX-1 (Annexure Of Supplies) & ANX-2 (Annexure Of Inward Supplies)

These two annexures are the evolutionary change in the return filing system of indirect tax as it will make the compliance easy and very quick. 
ANX-1 is for outward supplies and ANX-2 is for inward supplies.
The ANX-1 will basically comprise details of outward supplies, inward supplies attracting reverse charge and import of goods and services. Supplier is able to upload the details of each invoice on real time basis continuously. And on the basis of the documents uploaded by supplier in his ANX-1, will be reflected in ANX-2 of the recipient of the supply and on the basis of the ANX-1 of supplier, recipient can avail the input tax credit.

In existing return filing system, for availing B2B purchase input tax credit, only way to justify the claim was GSTR-2A. If 2A doesn’t reflect the particular invoice ITC of which is to be claimed, there may be chances the recipient can’t avail credit.
But in new return filing system, now recipient of supply, in the invoices automatically reflected by GST-ANX-1 of the supplier, can take action against the supplier’s details if the amount of tax is not shown correctly by the supplier.

Basics for Goods and Service Tax (GST) Audit

Currently the new GST “New Return Proto-type” is given on the website to give feel of new method. But from 1stOct 2019, for the large taxpayers, filing of new returns will be mandatory. While for small taxpayers, the deadline for filing new return is 1st January 2020. Thus from first month of 2020, all registered persons under GST will be filing new returns mandatory.

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