Crucial three months for the taxpayer in GST to be ready to embrace new GST return functionalities

[Ganeshan Kalyani]

New return in GST RET-1, GST RET-2, GST RET-3 is going to be implemented soon. GST RET-1 is consisting of GST ANX-1 which is for furnishing outward supplies and GST ANX-2 is inward supplies. The invoices in this annexure will appear upon filing of GST ANX-1 filed by the suppliers. The buyer has to accept, reject, keep on hold the invoices that would be appearing in the GST ANX-2. The accepted invoices would successfully flow to GST RET-1 and become an eligible input tax credit and the rejected and kept on hold invoices would remain in GST ANX-2 as a reconciliation item. The buyer can take action in subsequent month return on those items.

Since, the eligibility of input tax credit is based on acceptance of invoices in GST ANX-2 the buyer has to take action on the populated invoices before filing of the return. The supplier is allowed to upload his outward invoices on a continuous bases till 10th of subsequent month. Thus, the buyer has got the window to take action on the invoices appearing in his GST ANX-2 as and when the supplier uploads the invoices. The buyer will not be allowed to upload the detail of the inward invoices if the supplier miss them to furnish in his GST ANX-1. Buyer can only check and identify the discrepancy and inform the supplier to upload them in the return. Thus the follow up job of the buyer would increase.

The contact numbers namely mobile number, landline and email ID of the supplier must be updated in the buyers master record so that it becomes easy to send him the communication about the discrepancy on real time. Thus the buyer can utilise these three months time to update the contact details in their system, in case not maintained. The purchase team help may be sought for this purpose.

GST ANX-1 is available on trail basis to the taxpayer between July, 2019 to September, 2019. Supplier can do trial testing of this return in these period. From October, 2019 the annexure GST ANX-1 would become mandatory. The buyer can view GST ANX-2 but cannot take action in these period. GSTR-1 will be functional only till September, 2019. GSTR-3B to continue till November, 2019.

Training to the concern person in purchase, store, HR, IT, cashier, marketing, logistics, accounts is very essential as the person from these department would be transacting with the supplier and they must emphasize on GST compliance on the supplier.  The supplier would be made aware about the consequence of not uploading the details in his return.