New GST return system: Key dates, phasing out of FORM GSTR-3B to rule changes - What traders must know

The 35th GST Council Meeting on Friday recommended several changes related to GST law and procedure. The meeting in New Delhi was held under the chairmanship of Union Finance and Corporate Affairs Minister Nirmala Sitharaman. This was the first meeting of the Council after the swearing in of the new Government. In order to give ample opportunity to taxpayers as well as the system to adapt, the new return system will be  introduced in a phased manner, as described below:

Between July, 2019 to September, 2019, the new return system (FORM GST ANX-1&FORM GST ANX-2 only) will be available for trial for taxpayers. The taxpayers can continue to file FORM GSTR-1&FORM GSTR-3B as at present;

From October, 2019 onwards, FORM GST ANX-1 will be made compulsory. Large taxpayers (having an aggregate turnover of more than Rs. 5 crores in previous year) will file FORM GST ANX-1 on a monthly basis whereas small taxpayers will file first FORM GST ANX-1 for the quarter October, 2019 to December, 2019 in January, 2020;

For October and November, 2019, large taxpayers will continue to file FORM GSTR-3B on monthly basis and will file first FORM GST RET-01 for December, 2019 in January, 2020. Invoices etc. can be uploaded in FORM GST ANX-1 on a continuous basis both by large and small taxpayers from October, 2019 onwards. FORM GST ANX-2 may be viewed simultaneously during this period but no action shall be allowed on such FORM GST ANX-2;

From October, 2019, small taxpayers can stop filing FORM GSTR-3B and to start filing FORM GST PMT-08. They will file their first FORM GST-RET-01 for the quarter October, 2019 to December, 2019 in January, 2020;

From January, 2020 onwards, FORM GSTR-3B will be completely phased out.

On account of difficulties being faced by taxpayers in furnishing the annual returns, the due date for furnishing returns/reconciliation statements has been extended till 31.08.2019.

Also, to provide sufficient time to the trade and industry to furnish the declaration in FORM GST ITC-04, relating to job work, the due date for furnishing the said form for the period July, 2017 to June, 2019 has been extended till 31.08.2019.

Amendments to be carried out in the GST laws

To implement the decisions of the GST Council taken in earlier meeting, certain amendments will be made in the GST rules. These are:

- Rule 138E of the CGST rules, pertaining to blocking of e-way bills on non-filing of returns for two consecutive tax periods, will be brought into effect from 21.08.2019, instead of the earlier notified date of 21.06.2019

- The last date for filing of intimation, in FORM GST CMP-02, for availing the option of payment of tax under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019, will be extended from 30.04.2019 to 31.07.2019.