The old return system has many complications regarding Input tax credit and amendments. Plus, making a reconciliation of GSTR-1 and GSTR 3B form for big taxpayers became a tedious job. So, the government is now launching new GST return system. Under the new GST return system, there will be one GST RET-1 and its two annexure GST ANX-1 and GST ANX-2.
Since the guide is on how to fill GST ANX-1? ANX-1 contains details of outward supplies, imports and inward supplies attracting reverse charge.
New GST return forms from 1st April, 2020
As per the decision taken at the 37th GST Council Meeting, the new GST return system for all taxpayers and for all forms will be implemented from April 2020.
Filling PART A of Questionnaire of GST ANX-1
- The first option is to “I understand that the amount of tax specified in the outward supplies for which the details are being uploaded by me in this annexure shall be deemed to be the tax payable by me under the provisions of the Act” and you have only one option to select that is “Yes”.
The first option is itself reconciliation, if we see through the perspective of old return system. It is a reconciling the outward supplies shown in GSTR-1 and tax paid through GSTR-3B.
- The second option in the questionnaire in GST ANX-2 “Would you like to change the reply to the questions regarding nature of supplies as filled in the questionnaire of the return of the last tax period, if already filled in”
You will be granted either “Yes” or “NO” option. If you will select “No” option, then no additional questions will be asked. In case, you selected “Yes” then, additional questions will also appear.
Here, the nature of supplies refers to B2B, B2C and other type of supplies. In case you have sold to only B2B in one month and in second month you have B2C sales. Then, choose “Yes” option.
Filling Part B of Questionnaire of GST ANX-2
The part B of questionnaire will only appear in case you have selected “Yes” option above. The Part B of questionnaire contains thirteen questions and each one will be default selected as “No”. You can select “Yes” option and further the form will proceed accordingly.
Have you made any
- B2C supply (table 3A)?
- B2B supply (table 3B)?
- Exports with payment of tax (table 3C)?
- Exports without payment of tax (table 3D)?
- Supply to SEZ units / developers with payment of tax (table 3E)?
- Supply to SEZ units / developers without payment of tax (table 3F)?
- Any supply which is treated as deemed exports (table 3G)?
- Have you received inward supplies attracting reverse charge (table 3H)?
- Import of services (table 3I)?
- Import of goods (table 3J)?
- Have you imported goods from SEZ units / developer on Bill of Entry (table 3K)?
- Has your supplier not uploaded invoices on which you have claimed input tax credit (i.e. credit on missing invoices) two tax periods ago (for monthly) or previous tax period (for quarterly)(table 3L)?
- supply through e-commerce operators on which tax was required to be collected under section 52?
Form GST ANX-1 fields
Now we will discuss parts of annexure step by step. I have also attached screenshots of annexure. The screenshots are derived from the offline utility downloaded from GST Portal.
Supplies made to consumers and unregistered persons (Table 3A)
The supplies made to consumers and un-registered persons (i.e. B2C) shall be reported in this table. Supplies shall be reported tax rate wise and net of debit /credit notes. There is no column to report HSN code, so HSN code is not required.
|Do not adjust any Purchase accounting debit/credit notes. Here debit note and credit notes are related to Sales.|
The third column states “Supplies covered Under Section 7 of IGST act”. The supplies covered under those tables need to be reported in next tables, otherwise it should be left as blank.
What if the value becomes negative after net of debit and credit notes?
The same negative value should be reported, For example: -100 should be reported.
Supplies made to registered persons (other than those attracting reverse charge) (Table 3B)
The supplies other than those attracting reverse charge made to the registered persons, all GSTIN holders should be reported here. Also, reporting of supplies made to government departments and other entities having TDS/TCS registration shall also be reported here. This would also include any amendments made.
What should not be reported here?
- Supply of goods made by SEZ units / developers to persons located in domestic tariff area (DTA). However, supply of services by SEZ units/developers to persons located in domestic tariff area (DTA) shall be reported here.
- Supply of goods or services made to SEZ units / developers shall not be declared in this table
Here, document value is referred to invoice value not taxable value.
Exports with payment of tax and without payment of tax (Table 3C & 3D)
Export with payment of IGST shall be reported in Table 3C while those without payment of tax in Table 3D. (Check Export type- “WPAY & WOPAY”)
Shipping Bill/Bill of export number if available can be reported at the time of filling of return. However, the remaining ones can be reported after filling of return. A separate functionality for updating of details of shipping bill / bill of export in table 3C or table 3D will be made available on the portal.
Supplies to SEZ units/developers with and without payment of tax (Table 3E and 3F)
The supplies made to SEZ units / developers shall be reported in table 3E and 3F depending whether the supply was made with or without payment of Integrated tax.
“In case of supplies made with payment of tax, the supplier will have an option to select if the supplier or the SEZ units / developers will claim refund on such supplies. If the supplier is not availing refund, only then the SEZ units / developers will be eligible to avail input tax credit and claim refund for such credit after exports by them”
Deemed exports (Table 3G)
The supplies considered as “deemed exports” shall be reported here. It will also include any amendments.
There is a option whether the supplier will claim refund or not. If refund is to be claimed by the supplier, then recipient will not be eligible to avail input tax credit on such supplies.
Inward supplies attracting reverse charge (Table 3H)
The supplies on which reverse charge mechanism is applicable should be reported here GSTIN wise not invoice. The amount of advance paid shall be declared in the month in which the same was paid. The value of supplies should be net of debit and credit notes and advances on which tax has been paid, if any.
“Where only advance has been paid to the supplier, on reporting the same, the credit shall flow to the main return (FORM GST RET-1) and shall be reversed in table 4 of the said return. This credit can be availed only on receipt of the supply and issue of invoice by the supplier”
What if the supplies are received from an unregistered dealer?
Since, unregistered dealer do not have GSTIN so, PAN Number should be reported in Table 3H.
Import of services (Table 3I)
Import of services net of debit/credit notes and advances paid on which tax has already been paid at the time of advance shall be reported here. Invoice wise details are not required. Services received from SEZ units and developers shall not be required in this table.
Import of goods (Table 3J)
Import of goods shall be disclosed here-document type, Port code, Bill of entry and value shall be disclosed. Since, IGST is levied at the time of import; tax will not be paid in return. The exact amount of IGST and Cess paid at the port of import may be reported here, to avail input tax credit. Any reversal of ineligible credit should not be declared here, rather in Table 4B of main return. (Form GST Ret-1).
Import of goods from SEZ units on Bill of entry (Table 3K)
Good received from SEZ units / developers on Bill of Entry shall be reported in this table. Already, IGST is levied at the time of clearance into DTA and have been cleared on a Bill of Entry and are not subjected to taxation in this return. SEZ units and developers making such supplies shall not include such supplies in Table 3B.
Uploading details of invoices (Table 3L)
The recipient shall provide document wise details of the supplies for which credit has been claimed but the details of supplies are yet to be uploaded by the supplier(s) concerned.
However, in the new return beta utility released by GST department, there is no sheet for providing details of invoices. This is little bit confusing, hope a clarification comes soon.
Details of supplies made through e-commerce operators liable to collect TCS (Table 4)
Although, the details of supplies made through e-commerce operators liable to collect tax under Section 52 shall be reported in Table 3 but in Table 4 you have to report at consolidated level.
Click here to download new gst return offline tool
Five Important instructions on filling Form ANX-1
- Registered person can upload the details of documents any time during a month/quarter to which it pertains or of any prior period but not later than the due date for furnishing of return for the month of September or second quarter following the end of the financial year to which such details pertains or the actual date of furnishing of relevant annual return whichever is earlier except that –
- The taxpayer filing the return on monthly basis will not be able to upload the details of documents from 18th to 20th of the month following the tax period.
- The taxpayer filing the return on quarterly basis will not be able to upload the details of documents from 23rd to 25th of the month following the quarter.
- Advances received on account of supply of services shall not be reported in ANX-1. The same shall be reported in Table 3C(3) and adjustment thereof shall not be reported in Table 3C(4) of Form GST RET-1.
- Supplies on which Reverse charge mechanism is applicable shall be reported by the receiver, not by the supplier of service. Such supplies shall be reported GSTIN wise and amount of tax and taxable value should be net of debit/ credit notes and any advances paid (on which tax has already been paid).
- Suppliers having turnover of more than 5 crores will upload HSN codes in the form. HSN code should be six digit levels for both goods and services. For the taxpayers having turnover up to 5 crores, shall have an optional facility whether to report HSN or leave it as blank.
- Value of supplies and tax amount should be reported in whole number or up to two decimal values.
How to report a document of old return filling system in new GST return filling system?
The documents of the period prior to the introduction of new return system can be reported in the annexure. But, they shall be accounted for payment of tax. Now, three scenarios arise and their solutions.
|Document not reported in GSTR-1 and tax also not paid in GSTR-3B||The solution for this is to upload the document and tax should also be paid along with interest.|
|Invoices not reported in GSTR-1 but tax has been paid in GSTR -3B.||Document should be uploaded and adjustment of tax should be made through Table 3C(5) of Form GST RET-1, in case credit notes issued then make adjustment in Table 3A(8) for Form GST Ret-1.|
|Document reported in GSTR-1 but tax not paid in GSTR 3B.||Since, the document is reported in GSTR -1, don’t report it in the form but make the payment of tax through Table 3A (8) or 3C (5) of FORM GST RET-1 as the case may be.|
Availing Input credit in new GST return system
Recipient will get credit of input on the basis of details of documents uploaded by the supplier up to the 10th of the following month for which return is filed for. However, such credit will only credited to the ledger when the recipient fills his return. Two situations arise here whether the return is filed by recipient monthly or quarterly.
|Return filled on “monthly” basis||Suppose recipient files return of January on February 20th, then he will be allowed to take credit of invoices uploaded by supplier up to 10th February.|
|Return filled on “quarterly” basis||Suppose the recipient files his return on quarterly basis (Normal, Sahaj, Sugam) of Jan to March on April 25th, and then he will be allowed to take invoices upload by supplier up to April 10th.|