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Changes Under New GST Return Format

by | Sep 2, 2020

Changes Under New GST Return FormatAs we all know, the whole world is suffering from a substantial financial loss due to the COVID-19 pandemic. On the other hand, India, with its vast population, is trying to bring in the best solutions to counter the crisis. Be it ‘Atma Nirbhar’ or “Vocal for local,” the government has notified several changes under the new GST return format relaxations and taxation policies to encourage many young and innovative minds of India.

By providing GST audit extension on due dates to file the GSTR-4, the government has given itself and the composition taxpayers a time of relief and recovery till 31st August 2020. If not for COVID-19, it would not have been possible for the government to overcome the confusion that previously existed due to multiple amendments and technical glitches on the GSTN portal.

In this article, you will know about the new GST return format declared on the 31st GST council meeting that came into force from April 2020 onwards. For more Invoice and GST related queries, reach out to us on Imprezz.in. We are an Indian company helping entrepreneurs emerge by programming GST invoices and quotations that enable self-employed, small scale businesses to create their invoices, quotes, and reminders directly on the cloud. Reduce the compliance risk and stay GST compliant with Imprezz accounting software for small businesses.

Rules to Be Followed Under the New Gst Return Format Relaxations

Generally, in the old GST return format, depending upon taxpayers’ category, people had to fill and file multiple forms of return, such as GSR-1(Goods and Service Tax Rate-1), GSTR-2, GSTR-3, GSTR-4, etc. Thanks to the new GST return format, only one easy return form, “GST RET-1,” is to be filed by all the taxpayers. The “GST RET-1” consists of 2 annexures, namely “GST ANX-1, GST ANX-2”.


The form primarily consists of the section that deals with inward and outward supplies. It typically consists of 4 sections in the form to be filled. The first two sections are about the taxpayer’s details, that is, his and his company’s registered name, date of filing, and ARN (Application Register Number).

The third section deals with all the exports’ details, inward and outward supplies carried out during a particular tax period, which attracts a reverse charge. The last section deals with all the e-com operated supplies that are accountable for collecting tax.

The taxpayers must be well aware that the inward supplies accountable to RCM (Reverse Charge Mechanism) must be acknowledged at the GSTIN level in the GST ANX-1.


The form mainly consists of 5 sections of inward supplies that are auto-drafted. The GSTIN has to be provided by the recipient in the first section, and the third person will automatically fill the second section.

In the third section, the recipient will be providing the details about the inward supplies received from the registered person, imports, and SEZ (Special Economic Zone) unit on BOE (Bill of Entry).

The fourth section of this form deals with Input Tax Credit: the rebates that the government provides in case of exceptional circumstances surrounding a person.

The fifth section primarily determines eligible credit received from ISD (Input Service Distributor). Via this, the recipient will also be provided with an HSN (Harmonized System of Nomenclature) to submit details at a document level.

New Return Filing System

When it comes to the changes made to bifurcate between small taxpayers and large taxpayers, in the old return format, the taxpayers whose turnover is up to 1.5 crores are regarded as small taxpayers and above that are considered to be large taxpayers. Wherein, in the new GST return format, the taxpayers whose turnover is up to 5 crores are regarded as small taxpayers and above that are considered to be large taxpayers.

Immediate Cancellation

The taxpayers have to file the GST returns until their registration has been canceled through an application for cancellation. Wherein as per the new GST return format, on the application of the form of cancellation, the GST return will be canceled immediately, after which you are exempted from filing the returns of that period.

The Remake of Amendment Returns

If in case the taxpayer loses his amendments or invoices, according to the new GST returns system, on filing an amendment return, it can be remade, instead of waiting for a specific tax period as in the old GST return format.

Claiming ITC

If the taxpayer provides or uploads debits or invoices within a certain period, he/she can claim ITC on returns except for the first ten months of visibility. Thereby, on the eleventh month, it will be posted on the ITC table. It will be published in the concerned department of the recipient’s return for the subsequent month.

Resolved GST Return Filing Complications

When the taxpayers filed invoices in GSTR-1, its month of the amendment could not be seen due to which many complications started arising. It had left many taxpayers worried. But, the release of the new format has successfully resolved the significant parts of the issue.

Visibility of Input Credits

With the introduction of GSTR-2B, the information of the input credit available on the imports will be shown. Unlike the old GST return format, the GST returns on the imports were not reflected anywhere in the GSTR-2A.

Easy Returns Filing

In the new GST return format, the government has made specific changes to make the procedure of the GST returns filing easy and encouraging for the business and professional communities throughout India.

GST E-Invoicing

Also, from 1st October 2020, under the GST arrangement and applicability of QR codes, the implementation of GST e-invoicing of bills has been made definite.


The changes implemented by the government of India have undoubtfully been for a better tomorrow and under the citizens’ favor. However, with the simplified format of the new GST return format, the procedure and the complications that made taxpayers concerned have now been relieved.

The new budding businesses all over India can now aim towards a higher level of progress by these changes. For more exciting education and a helping partner in terms of GST, invoices, and quotations, subscribe to Imprezz.in, the best accounting software in India.

We offer a 14 days free trial software program for small businesses in India. Stay GST compliant with updated invoice rules and format. Log in to start your accounting today.

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