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New GST Returns - FORM GST RET-1

FORM GST RET-1 (or its simpler variations) is the main GST return to be filed by all regular taxpayers. Most of RET-1's details are autopopulated from its annexures ANX-1 and ANX-2. The main tables of RET-1 are

Form GST RET-1

3. Summary of outward supplies, inward supplies attracting reverse charge, debit / credit notes, etc. and tax liability

A. Details of outward supplies

Table 3ATable 3A page2

1. Taxable supplies made to consumers and un-registered persons will be autopopulated from table 3A of FORM GST ANX-1. The value will be net of debit / credit notes.

2. Taxable supplies made to registered persons (other than those attracting reverse charge) will be auto-populated from table 3B of FORM GST ANX-1. It includes all supplies made to persons having GSTIN or UIN.

3. Exports made with payment of tax will be auto-populated from table 3C of FORM GST ANX-1.

4. Exports made without payment of tax will be auto-populated from table 3D of FORM GST ANX-1.

5. Supplies made to SEZ units / developers with payment of tax will be auto-populated from table 3E of FORM GST ANX-1.

6. Supplies made to SEZ units / developers without payment of tax will be autopopulated from table 3F of FORM GST ANX-1.

7. Supplies made to registered persons which are treated as deemed exports will be auto-populated from table 3G of FORM GST ANX-1.

8. Liabilities relating to the period prior to the introduction of current return filing system and any other liability (including excess tax collected from the recipient, if any) to be paid shall be reported here by the taxpayer.

B. Details of inward supplies attracting reverse charge

Table 3B headerTable 3B

1. Inward supplies attracting reverse charge will be auto-populated from table 3H of FORM GST ANX-1. The values will be net of debit/ credit notes and advances on which tax has already been paid at the time of payment, if any.

2. Import of services made during the tax period will be auto-populated from table 3I of FORM GST ANX-1. The values will be net of debit / credit notes and advances on which tax has already been paid at the time of payment, if any.

C. Details of debit / credit notes issued, advances received / adjusted and other reduction in liabilities

Table 3C headerTable 3C

1. Debit notes issued during the period in respect of supplies other than those attracting reverse charge will be auto-populated from the respective tables of FORM GST ANX-1.

2. Credit notes issued during the period in respect of supplies other than those attracting reverse charge will be auto-populated from the respective tables of FORM GST ANX-1.

3. Advances received on account of supply of services during the period shall be reported by the taxpayer after giving effect to refund vouchers. The same may be used to adjust any advances reported wrongly earlier.

4. Adjustment made out of advances reported earlier will be reported by the taxpayer. Excess adjustment, if any, made shall be accounted for in the next tax period’s return.

5. Reduction in output tax liability on account of transition from composition levy to normal levy or any other reduction in liability shall be reported here by the taxpayer.

D. Details of supplies having no liability

Table 3D headerTable 3D

1. Supplies covered under GST but exempted from payment of tax or Nil rated shall be reported here. (For example, goods exempted under notification No. 2/2017-Central Tax (Rate) dated 28th June, 2017, services exempted under notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017 etc.).

2. This is a residual entry for supplies not reported in any other column. Non-GST supplies and no supply specified in Schedule III shall be reported here. Supplies other than taxable and exempted /Nil rated supplies shall be reported here. However, it will exclude outward supplies attracting reverse charge. For the purposes of reporting here, non-GST supplies shall include supply of alcoholic liquor for human consumption, motor spirit (commonly known as petrol), high speed diesel, aviation turbine fuel, petroleum crude and natural gas.

3. Outward supplies attracting reverse charge on which tax is to be paid by the recipient shall be reported here. The values will be net of debit / credit notes.

4. Supply of goods by SEZ units / developers to DTA on a Bill of Entry shall be reported here. This column is to be filled by SEZ units or developers only.

E. Total value and tax liability

Table 3E headerTable 3E

1. Sum of part A, B, C and D will be the total value of supplies and that of liability and will be auto- computed.

4. Summary of inward supplies for claiming input tax credit (ITC)

A. Details of ITC based on auto-population from FORM GST ANX-1 and action taken in FORM GST ANX-2 and other claims

Table 4ATable 4A page2

1. Amount of credit involved in the rejected documents in FORM GST ANX-2 before filing the return will be auto-populated here and will be net of debit/credit notes.

2. Amount of credit involved in the documents which have been kept pending in FORM GST ANX-2 will be auto-populated here and will be net of debit/ credit notes.

3. Amount of credit on all documents accepted (including deemed accepted) in FORM GST ANX-2 will be auto-populated here and will be net of debit/credit notes.

4. If any eligible credit has not been claimed in FORM GSTR-3B due to non-receipt of supplies etc., the same can be claimed here.

5. Credit on inward supplies attracting reverse charge as reported in table 3H of FORM GST ANX-1 will be auto-populated here and will be net of debit / credit notes and advances on which tax has already been paid at the time of payment, if any.

6. Credit on import of services as reported in table 3I of FORM GST ANX-1 will be auto-populated here. It will not include services received from SEZ units and will be net of debit / credit notes and advances on which tax has already been paid at the time of payment, if any.

7. Credit on import of goods from overseas as reported in table 3J of FORM GST ANX-1 will be auto-populated here. It will not include goods received from SEZ units / developers.

8. Credit on import of goods from SEZ units / developers as reported in table 3K of FORM GST ANX-1 will be auto-populated here.

9. Credit distributed by ISD and reported in FORM GSTR-6 of the said ISD as autopopulated in table 5 of FORM GST ANX-2 will be auto-populated here. It will be net of ISD credit notes.

10. Provisional credit on documents not uploaded by supplier(s) can be reported by the recipient for availing ITC to the extent provided in the Act read with the rules made thereunder. This ITC is other than that auto-populated in FORM GST ANX-2.

11.

i) There may be situations where a credit note was issued by the supplier against an invoice but the recipient had taken nil or partial credit on such invoice. Since acceptance of credit note will lead to reversal of credit, there may be instances where there will be a double reversal of credit for the recipient. In order to address the same, a facility has been provided for recipients to self-adjust any such loss of credit arising from issuance of credit notes by the supplier. Illustrations:

  • a) A supplier issues an invoice for Rs. 1000/- to the recipient in the month of May. The recipient accepts the invoice in his FORM GST ANX-2 and the credit involved in the said invoice gets auto-populated in his FORM GST RET-1. In the month of June, the supplier gives a credit note to the recipient who accepts the same in his FORM GST ANX-2. Upon acceptance of the said credit note, the credit involved therein is reversed and this gets reflected in FORM GST RET-1. No adjustment needs to be made in such a case.

  • b) A supplier issues an invoice for Rs. 1000/- to the recipient in the month of May. The recipient accepts the invoice in his FORM GST ANX-2 but takes 50% credit on the said invoice in his FORM GST RET-1. In the month of June, the supplier gives a credit note to the recipient who accepts the same in his FORM GST ANX-2. Upon acceptance of the said credit note, the credit involved therein is reversed and this gets reflected in FORM GST RET-1. In such a case, the recipient may make an upward adjustment of 50% credit in this row as he had initially taken only 50% credit on the original invoice.

  • c) A supplier issues an invoice for Rs. 1000/- to the recipient in the month of May. The recipient accepts the invoice in his FORM GST ANX-2 but takes no credit on the said invoice in his FORM GST RET-1. In the month of June, the supplier gives a credit note to the recipient who accepts the same in his FORM GST ANX-2. Upon acceptance of the said credit note, the credit involved therein is reversed and this gets reflected in FORM GST RET-1. In such a case, the recipient may make an upward adjustment of 100% credit in this row as initially he had not taken any credit on the original invoice.

ii) Any other reclaim of ITC can also be reported here.

B. Details of reversals of credit

Table 4B HeaderTable 4BTable 4B page2

1. If a document is rejected by the recipient after accepting and filing return of any tax period, then the value and amount of ITC will be auto-populated here, in the return filed immediately after such rejection. Credit availed on such document will be reversed. The amount will be net of debit / credit notes.

2. Out of the credit available in table 4A, the recipient shall report the amount of ineligible credit. ISD credit is also part of credit available in table 4A and shall also be taken into account accordingly for declaring ineligible credit. It shall not include any credit claimed in table 4A (10) in respect of supplies not uploaded by the supplier during the tax period which is already net of ineligible credit.

3. Documents of supplies uploaded subsequently by suppliers on which credit has already been claimed on provisional basis in the previous tax periods by reporting on self-assessment basis in table 4A(10) shall be reported by recipient here. As the credit was claimed on missing invoices on net of ineligible credit basis earlier, the values should be reported as net of ineligible credit only.

4. Reversal of input tax credit under rule 37, 39, 42 & 43 shall be reported here, if applicable.

5. Any other reversal including ineligible credit on import of services, downward adjustment of ITC on account of transition from composition levy to normal levy, etc. not covered by Sr. no. 1 to 4 shall be reported here.

C. Input tax credit available after reversal

Table 4C HeaderTable 4C

  1. Difference of credit available in table 4A and reversal of credit reported in table 4B will be the amount of credit available during the tax period.

D. ITC declared during first two months of the quarter (only for quarterly return filers)

Table 4D HeaderTable 4D

  1. ITC declared during first two months of the quarter shall be auto-populated from FORM GST PMT-08 at Sr. no. 1 & 2 for first month and second month respectively.

E. Net ITC available

Table 4E HeaderTable 4E

  1. Difference of credit reported in table 4C and table 4D will be the net ITC available during the tax period and will be posted to the electronic credit ledger for utilization.

ITC on capital goods and services

Out of credit available in table 4C, ITC claimed on capital goods and ITC claimed on services shall be reported here.

5. Amount of TDS and TCS credit received in electronic cash ledger

Table 5

6. Interest and late fee liability details

Table 6Table 6 page2

7. Payment of tax

Table 7

8. Refund claimed from electronic cash ledger

Table 8

Instructions (FORM GST RET-1)

  1. Facility to file Nil return through SMS will also be available if no supplies have been made or received.

  2. After uploading details of supplies in FORM GST ANX-1 and taking action on the documents auto-populated in FORM GST ANX-2, the taxpayer shall file the main return in FORM GST RET-1.

  3. Information declared through FORM GST ANX-1 and FORM GST ANX-2 shall be autopopulated in the main return (FORM GST RET – 1).

  4. The supplier can report excess tax collected from the recipients, if any, in the main return (FORM GST RET-1) under any other liability in Sr. No. 8 of table 3A.

  5. Rejection of the details of documents wrongly uploaded by suppliers, pendency of supplies not received but available in the auto-populated details of documents, reversals, adjustments etc. shall be auto-populated in table 4.

  6. Amount of TDS/TCS shall be credited in the electronic cash ledger which will be based on returns filed in FORM GSTR-7 and FORM GSTR-8 by deductors under section 51 and persons required to collect tax under section 52 respectively.

  7. Interest and late fee to the extent of late filing of return, making late payment of taxes, uploading preceding tax periods’ invoices shall be computed by the system. Other interest due to reversals etc. shall be entered by the taxpayer on self-assessment basis.

  8. Payment of tax can be made by utilizing ITC under the same head or cross-utilizing from other heads in accordance with the provisions of the Act read with the rules made thereunder. Balance payment of tax can be made in cash.

  9. Suggested utilisation of ITC will be made available in the payment table. However, taxpayer can make changes in the suggested ITC utilization as long as such changes are as per provisions of the Act read with the rules made thereunder.

  10. Payment of tax on account of supplies attracting reverse charge, interest, fee, penalty and others shall be made in cash only.

  11. Adjustment of negative liability of the previous tax period shall be allowed to be made along with the current tax period’s liability.

  12. Viewing of the balance amount available in electronic cash and electronic credit ledger will be made available before making payment.

  13. Value of inward supplies attracting reverse charge and import of services mentioned in table 3B will not be added to the turnover. Only the tax amount will be added to the computation of tax liability.

  14. Facility of creating a challan for making payment will be made available if the balance in the electronic cash ledger is insufficient to discharge the liabilities.

  15. Adjustment to liabilities or input tax credit relating to the period prior to the introduction of current system of return filing shall be reported in table 3 (tax liabilities) or table 4 (input tax credit), as the case may be.