- Uploading of invoices on an ongoing basis and accept/reject by buyer – One of the key changes is the mechanism to upload invoices in real-time by a supplier, which will be available for the buyer to view simultaneously and take action on in FORM GST ANX-2. The invoices can be marked as accepted or rejected by the buyer, or the same can be kept pending for action to be taken at a later date.
- Provisional credit – In the event a supplier does not upload invoices or file his return, there will be a mechanism for availing input tax credit by the recipient on a provisional basis. The credit available in such cases would not be more than 20% of the specified value. There is no provisional credit allowed in the current system.
- Amendment returns – The new return system will have a provision to file two amendment returns for each tax period. The old system did not allow this and the only option available to taxpayers was to amend certain details in the GST return of the following period. Now, as an amendment return can be filed for the same tax period, interest on the amended tax liability may be avoided or reduced.
The differences between the two return filing systems can be seen below
Timeline of changes
From July 2019
The new return system will be implemented on a trial basis where a supplier will be able to upload invoices using the FORM GST ANX-1, and the recipient will be able to view and download the invoices of inward supply.
July to September 2019
Trial period where users can make themselves familiar with the annexure forms GST ANX-1 and GST ANX-2, and will continue to file GSTR-1 and GSTR-3B.
From October 2019
FORM GST ANX-1 will be made compulsory to be filed by large taxpayers (annual turnover more than Rs. 5 Crore), and it will replace the GSTR-1 return entirely. For small taxpayers, FORM GST ANX-1 will be implemented from January 2020, which will be for the quarter October to December, 2019.