GST ANX-2 – New GST Return Type
GST ANX-2 – New GST Return Type
The Goods and Services Tax (GST) announced a new and simplified GST return filing system for small taxpayers. Under the new system, persons having GST registration and a turnover of fewer than Rs.5 crores will be provided with an option to file quarterly GST return instead of monthly return. The new GST Return form contains Form GST RET-1 (Normal), Form GST RET-2 (Sahaj) and Form GST RET-3 (Sugam). Annexure of supplies (Form GST ANX 1) and Annexure of Inward Supplies (Form GST ANX 2) will be filed as part of these returns. The Form GST ANX-2 contains the details of inward supplies auto-populated mainly from the suppliers’ GST ANX-1. In this article, we will look at the Form GST ANX-2 in detail.
New Return Filing System Features
The features of the New Return filing system are explained in detail below:
- A normal taxpayer, based on the turnover limit will have an option to file monthly or quarterly return
- In this proposed system of new GST Return filing, a normal taxpayer will have to file FORM GST RET-1 or FORM GST RET-2 (Sahaj) or FORM GST RET-3 (Sugam).
- The return functionality will be available in online mode and offline mode
- Annexure of supplies (GST ANX-1) details for outward supplies and Annexure of Inward Supplies (GST ANX-2) inward supplies auto-populated mainly from the suppliers Form GST ANX-1 will be filed as part of the returns.
The annexure of Inward Supplies (GST ANX-2) is a form in which user can take action on the auto-drafted document uploaded by supplier which will be made available to them on a real-time basis. It will also contain details of auto-populated from the form GSTR-5 (Non-resident foreign taxpayer) and Form GSTR-6 (Return by Input Service Distributor).
- It will have an option to reject, accept, keep pending the invoices uploaded by the supplier
- The summary of the invoices uploaded by the supplier along with the action taken and the gross input credit tax available can be viewed
- A “Matching tool” will be provided by the GSTN which can be used by the recipient to match the auto-drafted details of GST ANX-2 with their purchase register.
- The new return filing system will have the option to view and rectify errors between purchase register and invoice data uploaded by the supplier
- The new return filing system contains the option to view the draft GST ANX-2
Uploading Form GST ANX-2
The instruction for uploading the form GST ANX-2 is explained in detail below:
Form GST ANX-2 for Sahaj
The format of GST ANX- 2 for GST Sahaj is reproduced below:NewGSTReturn_Sahaj-pages-9-11_ANX-2-1
Due Date for Filing
Details of documents uploaded by the respective supplier irrespective of the fact whether the supplier files the return on a monthly or quarterly basis will be auto-populated in the GST ANX-2 on a near real-time basis. It can be accepted or unlocked by the recipient up to the 10th of the month following the month in which the documents have been uploaded.
After this, the procedure as outlined below will be applicable
Take action on the Auto-Populated Documents
- The recipient can take action on the auto-populated documents to Accept, Reject or to keep pending continuously after 10th of the month following the month in which such invoices have been uploaded.
- In case the quarterly return filers communication of such rejected documents and any further action on such rejected documents will be done only in return for the next quarter
Accepted documents mean that supplies reported in such document have been received before the filing of return by the recipient and the details provided in the documents reported in FORM GST ANX-1 are correct
Accepted documents will not be available for amendment at the corresponding supplier’s end. However, the separate facility to handle such cases will be provided.
Processing of Invoice with Error
For the return process, any invoice with an error that cannot be corrected through a financial debit or credit note will be rejected.
- In case the recipient does not agree with some of the details such as HSN Code, tax rate, value etc. These are specific errors which cannot be corrected through debit or credit notes
- If the GSTIN of the recipient is wrong, it is visible in the GST ANX-2 of the registered person who is not concerned with the supply. These are specific errors which cannot be corrected through debit or credit notes
Processing of Rejected Documents
The supplier can make corrections in the rejected documents through FORM GST ANX-1 as rejected documents would be shown to the supplier
Pending action is the recipient has deferred the decision of accepting or rejecting the details of the invoices. There may be multiple reasons for the supplies are yet to be received, or the recipient is not able to decide whether the ITC is not to be taken, for the time being, etc
The input tax credit (ITC) in respect of the pending invoices will not be accounted for in table 4A of the main return ( GST RET-2) of the recipient, and such invoices will be rolled over to GST ANX 2 of the next tax period.
- The pending invoices will not be available for amendment by the supplier until the rejected by the recipient.
- The recipient does not take any documents on which an affirmative action of either accepting or keeping the documents pending or rejecting the document in his FORM GST ANX-2 will be deemed to be accepted upon the filing of return by him.
- Input tax credit (ITC) on such deemed accepted documents will be reflected in table 4A of the main return (FORM GST RET-2).
Status of Return Filing
Status of return filing by the supplier will also be made known to the recipient inform GST ANX 2 of the quarter after the due date of GST return filing is over. Recipients can able to check the return filing status of the suppliers. This status does not affect the eligibility or otherwise of input tax credit which will be decided as per the Act.
The trade name of the supplier will also be shown along with GSTIN. The legal name will be shown where the trade name is not available
Separate functionality will be provided to search, reject accepted document on which credit has already been availed. Input tax credit (ITC) availed on such document shall be shown for a reversal in table 4B(1) of FORM GST RET-2 which may be adjusted in table 4A(6) of FORM GST RET-2 to arrive at the amount of input tax credit availed. However, the reversal of credit for the recipient will be with interest as per the provisions of the Act.
The form GST ANX-2 will be treated as deemed filed after the filing of main return (FORM GST RET-2) relating to the quarter
Delayed Filing of Return
The documents uploaded in GST ANX-1 for months’ by a supplier who did not file the return for the preceding two consecutive tax periods will be made available to the recipient in the form GST ANX-2 with an indication that the credit will not be available on such documents.
The documents will be visible to the recipient, but the recipient cannot claim the ITC on such inward supplies. The recipient can reject or keep the documents pending until filing of return by the supplier. For suppliers filing a return every quarter, this period will be one quarter, that is if the return of one quarter has not been filed, then the recipient will not be able to claim the credit on the invoices uploaded during next quarter.
Form GST ANX-2 for Sugam
The format of GST ANX- 2 for GST Sugam is reproduced below:NewGSTReturn_Sugam-pages-11-13_ANX-2-1
The procedure for uploading the form GST ANX-2 for GST Sugam is same as GST Sahaj.