With the implementation of the New GST Return System, the existing GST return forms will be swapped by a set of new GST return forms & annexures.
The two annexures, namely Anx-1 & Anx-2 will replace the current forms GSTR-1 & GSTR-2A.
This article covers these two Annexures in detail, including the applicability, facts-myths, & format.
Introduction to New GST Return
New GST Return System is a revised & more systematic approach to simplify the GST Return Filing for taxpayers. This is system is being implemented from October 2020 as per recent Press Release.
Under new GST return, the government has made the following major changes-
- Automation- The government has enabled a system where most of the information or data in the GST Return Forms & Annexures will auto-populate from the e-Invoicing System
- Form Count- The Count of Forms has been adjusted under the New GST Return System. For a normal/regular taxpayer, there will be two annexes- Anx-1 & Anx-2, and one main return form- GST RET-1. Further, there are two more types of main return forms that are simplified for small businesses- GST Sahaj & GST Sugam.
- Form Bifurcation- The New GST Return Forms are so designed as to be suitable for both small & large enterprises. These forms are divided on the basis of turnovers & types of supplies.
- Filing Frequency- The Filing frequency of the New GST Return Forms will be monthly for large enterprises & quarterly or optional for small enterprises.
- Tax Discharge- All the taxpayers whether monthly or quarterly filers, all must discharge their tax liabilities on a monthly basis. The quarterly filers can pay the GST through a self-declaration & with the help of Challan GST PMT-08.
New GST Return Forms & Annexures
A total of three main return forms & two annexures are introduced under New GST Return System. Given below are the forms & their descriptions, applicability & purpose, in order-
- Anx-1 or Sales Annexure- Anx-1 is the replacement of GSTR-1 of the current system. It will be the sales annexure to be furnished by all the classes of taxpayers. As per the government’s idea, most of the details in this form will auto-populate from the IRP or Invoice Registration Portal of the e-Invoicing system. The taxpayers will have to declare all of their sales in this annexure, every month.
- Anx-2 or Purchase Annexure- Anx-2 will be the replacement of form GSTR-2A but with a twist. GSTR-2a was a read-only form, meaning the recipients were not allowed to alter or change anything in the form. But unlike GSTR-2A, recipients will have the option to take actions on the invoices declared by the supplier. The rest will remain the same as GSTR-2A in Anx-2, and the form will be applicable to all the taxpayers to be filed on a monthly basis.
- GST RET-1 or Normal Main Return Form- This is the main return form for all the regular taxpayers. Both small & large enterprises can opt for form GST RET-1 & can file it on a monthly or quarterly basis.
- GST RET-2 or GST Sahaj- This is one of the simplified main return forms for small taxpayers. Businesses having only B2C supplies and that are eligible to reverse charge supplies must opt for this form.
- GST RET-3 or GST Sugam-This is another simplified main return form for small taxpayers. Businesses having B2Csupplies, B2B supplies and that are eligible to reverse charge supplies only, must opt for this form.
Annexures Under New GST Returns
Detailed Guide on ANX-1 under New GST Return
Form GST Anx-1 is an annexure for the main return forms GST RET-1, Sahaj & Sugam. This annexure will have an invoice-wise declaration of all the outward supplies & inward supplies liable to reverse charge.
The e-Invoices will auto-populate multiple fields of this annexure on a real-time basis & the same will also be auto-populated in the recipient’s Anx-2. The recipient can take the required actions on these invoices in real-time.
Anx-1 is the sales annexure under gst and will play a vital role in the following forms- Main Return Forms: GST RET-1/2/3, Anx-2, and the Annual Return Forms.
Applicability of Anx-1: Anx-1 must mandatorily be filed by all the classes of taxpayers.
Requisites- There are no specific requisites to furnish this annexure, except that the business must be a regular taxpayer and have a valid GSTIN & login credentials.
Anx-1 Filing Options- Both small & large enterprises need to furnish Anx-1, but since there are restrictions on the supply type in forms GST RET-1, Sahaj, & Sugam, there will be a variation in furnishing the Anx-1 as well. Given below are the filing options-
- GST RET-1: Taxpayers filing this form must fill all the details in all the tables given in Anx-1.
- GST Sahaj Form or GST RET-2: Taxpayers filing this form must furnish Table 3A & Table 3H only in Anx-1.
- GST Sugam Form or GST RET-3: Taxpayers who have opted for filing this form must furnish Table 3A, Table 3B & Table 3H only in Anx-1.
Format of GST Anx-1-
Given below is the format of Form GST Anx-1 in a tabular form along with the description of every table-
- GSTIN: You must input the GSTIN here.
- Basis details: Basic details such as trade name, legal name, etc. will be auto-populated on the basis of the GSTIN that you enter.
- Details of outward supplies, inward supplies attracting reverse charge and import of goods and services:
Table No. | Table Name |
3A | Supplies to unregistered persons/consumers (B2C) |
3B | Supplies to registered persons (B2B) |
3C | Exports with/without payment of tax (EXP) |
3D | Exports with/without payment of tax (EXP) |
3E | Supplies to SEZ with/without payment of tax (SEZ) |
3F | Supplies to SEZ with/without payment of tax (SEZ) |
3G | Deemed exports (DE) |
3H | Inward supplies attracting reverse charge (RCM) |
3I | Import of services (IMPS) |
3J | Import of goods (IMPG) |
3K | Import of goods from SEZ units/developers (IMPG SEZ) |
3L | Missing documents on which credit has been claimed in T-2/T-1 (for quarter) tax period & supplier has not reported the same till the filing of return for the current tax period. |
- Details of the supplies made through e-commerce operators liable to collect tax under section 52 (out of any outward supplies declared in table 3)
Detailed Guide on ANX-2 under New GST Return
GST Anx-2 is a purchase annexure to the main return forms GST RET-1/2/3 that auto-populates from the details of the suppliers’ Anx-1.
As a recipient, you will have the option to take action on the invoices of the annexure in real-time. you can accept, reject and mark the invoices pending.
Note- you can only take actions on invoices but you cannot edit any details of the annexure, in case of any changes you will have to communicate with the suppliers.
Once you take the required actions & proceed, the invoices will be treated accordingly in the main return forms. For example, if you mark an invoice as accepted, it will auto-furnish in your main return & the supply will be deemed valid.
This form must be filed accurately as it determines the ITC amount.
Applicability of Anx-2: Since it is auto-generated from the supplier’s Anx-1, there is no specific applicability of this form. Whenever a supplier uploads their Anx-1, the recipients Anx-2 will auto-generate.
Requisites- There are no specific requisites to furnish this annexure, except that the business must be a regular taxpayer and have a valid GSTIN & login credentials.
Anx-2 Filing Options- Unlike in GST Anx-1, there is no restriction in this form, meaning, all types of taxpayers will get their Anx-2 & will be required to take actions to it, irrespective of the form they file.
You can take action in table 3A of Anx-2 the other two i.e. table 4 & table 5 are view only.
Format of GST Anx-2-
- GSTIN: You must input the GSTIN here.
- Basis details: Basic details such as trade name, legal name, etc. will be auto-populated on the basis of the GSTIN that you enter.
- Inward supplies received from a registered person (other than the supplies attracting reverse charge), imports and supplies received from SEZ units/developers on Bill of Entry:
Table No. | Table Name |
3A | Supplies received from registered persons including services received from SEZ units |
3B | Import of goods from SEZ units/developers on Bill of Entry |
3C | Import of goods from overseas on Bill of Entry |
- Summary of the input tax credit
- ISD credits received
Facts to Know about Form GST Anx-1 & Form GST Anx-2
In the sections above we have explained the two Annexures in detail, the requisites, applicability, format, etc.
Yet there are some facts & small details about these annexures that you must know before furnishing them.
Below, we have mentioned these facts & details for your reference-
Form GST Anx-1
- In the case of composition taxpayers, ISD, UIN holders, etc, the actions of the supplier are not dependent on the actions of the recipient completely. The supplier can make changes to the Anx-1 as he wishes.
- There is an invoice-wise declaration of supplies in Anx-1
- The supplies are furnished in Anx-1 in real-time & hence the recipient can take actions on the same, in real-time
- Only the recipient is required to report the supplies under RCM, not the supplier.
- Reporting the Place of supply is mandatory in Anx-1
- In case of exports & SEZ supplies, all taxpayers having annual aggregate turnover over Rs. 5 Crores will have to upload the data HSN-wise. The same is optional for taxpayers having turnover below Rs. 5 Crore.
- The Tax amount in Anx-1 will be auto-calculated based on the tax values & tax rates.
- The rejection of documents by the recipient will be intimated to the supplier only after the recipient files their return.
- The rejected invoices can be amended the filing of the subsequent month.
- For erroneous uploading of documents, there is a provision of shifting the documents under the right table head in Anx-1.
Form GST Anx-2
- The supplies are furnished in Anx-1 in real-time & hence the recipient can take actions on the same, in real-time & mark the invoices, accepted, rejected, or pending.
- You can only take actions on invoices but you cannot edit any details of the annexure, in case of any changes you will have to communicate with the suppliers.
- Marking an invoice pending implies that you are delaying the action on that invoice to a later date.
- Suppliers cannot take any actions on pending invoices in Anx-2
- If you do not take action to the invoices, it will be deemed accepted.
- Your Amx-1 will be deemed filed if you file the main return for the concerned tax period.
- The recipient will not be able to take input tax credits on invoices that the supplier does not file their main returns for two consecutive tax periods.
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The Article is written by Prachi Wankhede, who is a writer-editor at GSTHero and works in the finance & Indirect Taxation domain.
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