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New GST Return (RET 1) Filing System Applicability

The resurgence of GST mechanism marks the beginning of the trial phase for the same. With the desideratum to make the taxpayers well-acquainted with the revamps introduced in new GST return system, the trial period has been fixed by the Finance Minister.

Note: The FM has announced the RET 1 applicability and approved it in the 35th GST council meeting.

The whole plan has been rolled out by the Finance Minister, and the period from July to September has been finalised as a Trial period. The return form (Form GST RET-1) and two annexures (Form GST ANX-1 and Form GST ANX-2) are the three key components of the new return process. The return has been simplified by the government and the draft of the same has also been released along with some offline utilities.


FORM GST ANX-1 includes all the details of complete outward supplies, inward supplies on a reverse charge basis and import of goods and services to be included invoice-wise (except for B2C supplies) on a real-time basis.

FORM GST ANX-2 includes all the details of inward supplies while the recipient can reject or accept these documents, or tick them as pending, for further concern.

New GST Return Due Date Applicability for Taxpayers Filing in Table

MonthForm to be FiledCurrent Form Filing Turnover Limit
October 2019GST ANX-1 GSTR 1More Than 5 Crore
January 2020GST ANX-1 GSTR 1Up to 5 Crore
January 2020GST RET 1 GSTR 3BUp to 5 Crore
October 2019GST PMT 08 GSTR 3BUp to 5 Crore

What are the Changes?

GST return system has come back with some changes which include the replacement of GSTR 1 with Form GST ANX and GSTR-3B with Form GST RET-1. The taxpayers will now use Form GST ANX instead of GSTR 1. Since the trial period will last till September, the large taxpayers whose total annual turnover in the previous fiscal period exceeds ₹5 crore, will have to start using Form GST ANX from October while the small taxpayers whose total annual turnover in the previous fiscal year was up to ₹5 crore, will have to use Form GST ANX in January as they file returns on a quarterly basis and will file return for the October-December quarter.

As far as Form GST RET-1 is concerned, all the taxpayers will have to start using this Form, from January.

Starting From July 2019

From July, under the trial, users may upload invoices using the GST ANX-1 offline tool as well as view and download the inward supply invoices through the GST ANX-2 offline tool. The details of inward supply invoices will be present in summarised form for access on the common online portal.

In addition, from August, users may import their purchase register in the offline tool and compare the same with the downloaded inward supply invoices to ascertain the disparities.

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From July-September 2019

The July-September has kept as a trial period for taxpayers to acclimate them with the new return system and this is the sole motto behind this. It has nothing to do with the tax liability or input tax credit of the taxpayer, neither it is going to leave any impact on them. The taxpayers will simultaneously file existing return forms (GSTR-1 and GSTR-3B) in this trial period and if they fail to do so, they will be under obligation to pay penalties and interests under the standard norms.

Starting From October 2019

From October, the stringent rules will come into action in a full-fledged way. It will become mandatory to substitute the return GSTR-1 with monthly GST ANX-1 from October for large taxpayers and with quarterly GST ANX-1 from January 2020 for small taxpayers for the quarter period of October-December 2019.

After the trial period, the large and small taxpayers may upload invoices in GST ANX-1 on a regular basis, while GST ANX-2 will be available to be viewed only.

From October, small taxpayers will begin filing GST PMT-08 and end filing GSTR-3B. The first GST RET-01 for the quarter October-December will be filed from January 2020 by the small taxpayers. For the large taxpayer, the first GST RET-01 for December will be filled by January 2020 and they will persist filing GSTR-3B on a monthly basis

Parag Mehta who is a partner at NA Shah Associates LLP feels that the new return forms are not much simple and easy where the user will need to upload GST ANX-1 mentioning their outward liability, imports as well as inward supplies sprouting reverse charge.

“Based on GST ANX-1, filed by all, businesses will be able to download details of auto-drafted inward supplies in GST ANX-2, he said.

“The trade will be required to accept, reject or keep in pending the ITC on inward supplies. After completion of GST ANX-2, an auto-populated return in GST RET-1 will be generated. All the activities will have to be done on a monthly basis,” he added

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