Analysis of New System of GST Return by CA Swapnil Munot
Overview of New System of GST Return
Let us do the Analysis of New System of GST Return:
1st Phase: Software Preparation
- GST Council in its 27th meet dated 4th May 18, has taken the decision to introduce the new simplified system of GST Return.
- Up to Mar 19, GSTN will design new GST Monthly Return. Till that time, GSTR 3B & GSTR 1 filing will continue.
- There will be Single Monthly Return for everybody Except, For composition dealers/no supply cases, it will be quarterly return.
2nd Phase: Credit allowed on Provisional Basis.
- Sales details are to be furnished in the new Return System. Buyer can claim provisional credit, irrespective of whether the supplier has uploaded details of it.
- However, GSTIN will give the difference of credit claimed vs credit declared by the supplier. Buyer should find of the reason of difference and should take corrective action accordingly.
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3rd Phase: Credit auto calculated as per details furnished by the supplier.
- Sales Liability Calculation: It will be as per B 2 B and B 2 C details furnished.
- Input Tax Credit Calculation: Only way to get credit is if the supplier has uploaded the details to the system. ITC will be auto computed by GST System.
- Purchase side details are not required to be punched and same will be auto-populated.
- Ultimately credit will be available only if the supplier has uploaded sales details on the portal.
- If the supplier doesn’t pay tax to the government, the government will first catch supplier and then the buyer.
Important Challenges:
- Amendment in Act and Rules
- The draft Return form is out for comment
- Credit Reconciliation – Biggest Task which accounts department will be doing