New GST Returns – Overview, Forms, Invoices, ITC, Amendments, Offline Tool

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Introduction to New GST Returns

The central government introduced a simplified new GST returns system for taxpayers eligible to pay taxes on goods and services. Taxpayers are expected to benefit significantly from this new return system as it is more convenient and easy to understand. There are simpler return forms that will support taxpayers considerably at the time of GST tax filing. 

Besides, the new GST return has three main components – one main return form and two annexures. Taxpayers will need form GST RET-1 to file the main return form, and for annexures, they will require two forms, GST ANX-1 and ANX-2. In this article, we will understand everything about this new returns system.

Overview of GST Forms

Every registered taxpayer must file their GST returns. Let’s look at the different GST forms overview:

Details about all supplies made, input tax credits claimed, and tax payments—including interest, if applicable—are included in the primary GST RET-1 form. The GST ANX-1 and GST ANX-2 annexure forms will be included with this return. Except for B2C transactions, all outward supplies, inward supplies subject to reverse charge, and imports of goods and services must be reported in real-time, invoice by invoice, using the GST ANX-1 (Annexure of Outward transactions) form.

All inward supply information shall be reported in GST ANX-2, the Annexure of Inward Supplies. Most of these details will be automatically generated using the data suppliers have provided to their GST ANX-1. This automatically generated documentation will be available to the recipient of goods in real-time, enabling them to take appropriate action.

Understanding Invoices in New GST Returns

Let’s look at the different invoices in GST returns as per the new and simplified version:

  • Missing Invoices – If the supplier has not uploaded a debit note or an invoice and the recipient claims it as ITC, it will be called a missing invoice. If the ITC is claimed and the missing invoices are not uploaded within a specified time, the availed ITC will be recovered from the recipient.
  • Locking of Invoices – If the recipient agrees with the details of the invoice, s/he can lock it. When locking individual invoices becomes impractical due to a large volume of bills, locking of invoices will be considered for those submitted invoices that have not been rejected or remain pending by the receiver.
  • Unlocking of invoices – When the recipient claims an ITC on an invoice, it will be considered locked and will not be unlocked for any amendments. The supplier must issue a debit or credit note in case of an amendment. If an invoice is incorrectly locked, the recipient can unlock it online by reversing the claimed ITC and making an online confirmation.
  • Pending invoices – When the supplier uploads the invoice but there can be a situation from below:
    • Supply not received by the recipient
    • If the recipient thinks there needs to be an amendment
    • The recipient is not sure of availing the ITC

The recipient will mark such invoices as pending, and no ITC can be claimed.

  • Rejected invoices – The invoice will be accessible to a taxpayer, not the recipient of the supplies, if the supplier fills out the recipient’s GSTIN improperly. The recipient must reject these invoices since ITC cannot be claimed. The corresponding IT solution will be able to generate a recipient/seller master list that can be used to identify the proper GSTIN, making the process of rejecting invoices easier.

Input Tax Credit (ITC) in New GST Returns

Here are the new input tax credit (ITC) rules in the new GST return system:

  • The amendment to Section 16 states that buyers shall pay Section 50 interest and a sum equivalent to the ITC claimed if they do not pay their supplier the invoice value, including the GST amount, within 180 days of the invoice’s issuance date.
  • The revision to Section 17(5) adds the spending on corporate social responsibility (CSR) programs as an additional item under ineligible ITC.
  • According to amended Section 17(3), high seas sales and comparable transactions that are not supplies of goods or services are deemed exempt, and, as a result, ITC proportionate to such sales cannot be claimed.

Amendments in New GST Returns

According to the new return system, taxpayers can only make two amendment returns for each tax period. In addition, a taxpayer can pay using an amended return, which will assist the taxpayer in reducing his interest obligation. If the ITC is available in the taxpayer’s electronic credit ledger, it can be used to pay amendment returns liability. 

An amendment return of the relevant tax year to which the invoice relates can be used to modify a missing invoice that a supplier reports later. If an invoice is locked after the receiver has acknowledged it, it cannot be amended. 

To change any particular amount on a locked invoice, the supplier has two options: either raise a debit/credit note or ask the receiver to assist in unlocking the invoice so he may make the change by filing an amendment report. A GST invoice may only be amended if the receiver has not claimed their ITC.

Exploring the Offline Tool for GST Returns

GST offline tools are software programs that can help taxpayers significantly. GST offline tool usage can ensure that you do not need any internet connection to handle any GST-related work. This is an excellent option for people who may not have a stable internet connection but need GST tools to comply with GST rules and laws.


Besides, this is helpful for people in remote areas as most people face fluctuation issues on the internet. Thus, these tools allow these people to follow GST rules properly. Moreover, offline tools ensure data protection as the data will only be stored on your local machine.

Key Features of the New GST Returns System

Here are some key features of the new GST return system:

  • Monthly and quarterly GST return filings – The return filing frequency will be based on the taxpayer’s turnover and calculated based on the preceding year’s turnover. Taxpayers with less than INR 5 crore turnover will file quarterly, and people over INR 5 cr will file monthly.
  • Viewing and uploading invoices in real-time – If you upload your invoice by the 10th of the month, you can enjoy an auto-population facility under the liability table of the primary return. Suppliers can upload invoices anytime, and recipients can view, accept, or reject them.
  • Missing invoice reporting – If the supplier fails to report an invoice within a specified timeframe, the recipient can report it missing.
  • Amendment return facility – Taxpayers can file two amendments in the tax period.
  • Declaring exports – A taxpayer will be required to include the details of the shipping bill in the field designated for export information; they may choose to enter this information when filing the return or later.
  • Tax payment – If the taxpayer is classified as a small taxpayer, they should be aware that any obligation amount stated in the return will be fully discharged when the supplier files the primary return; this is essentially the same process as what is already done under GSTR 3B. However, large taxpayers will have to utilize a payment declaration form in the first and second month of each quarter, and they will have to self-assess their ITC.

Comparison with Old GST Returns System

Let’s compare the old and new return systems using a few parameters.

Parameter Old System New System
Reporting of supplies under RCM You can report invoice details during the filing of GSTR-1 and viewed only in GSTR-2A. You can file and view it at the same time for instant action.
HSN summary reporting HSN code summaries were reported separately. Suppliers must report at the invoice level.
Reporting of imports ITC on imports was reported alone in GSTR-3B. Report imports of goods and services in GST ANX-1.
Tax payment When submitting a monthly GSTR-3B return, the tax liability for a given period must be paid.  Whether GST returns are filed monthly or quarterly, the whole tax amount for a tax period must be paid in a monthly PMT-08.
Reporting of issued documents It was required. There is no requirement for reporting documents.

Impact on Businesses

Here are a few things that may be a challenge for the businesses:

  • It can be challenging for CAs to educate their clients on the new law.
  • Companies will need a proper mechanism to capture and upload all invoices continuously in real time.
  • They may also frequently match invoices uploaded by the supplier for claiming ITC.
  • They may also spend time tracking invoices not showing on the GST portal but physically present.
  • Vendor communication will be essential besides taking care of accounts payable and receivables.

Compliance and Deadline Management

Businesses must manage deadlines and comply with the new GST return structure to navigate India’s changing tax environment. Implementing more user-friendly digital interfaces and simpler return forms has made it necessary to pay close attention to deadlines and procedural requirements to ensure compliance with GST legislation. 

Proactive compliance practices are crucial to avoiding fines and preserving business continuity, from timely return filing to precise documentation. Robust deadline management techniques and thorough compliance frameworks are essential for promoting efficiency, transparency and regulatory alignment in the GST ecosystem as companies adjust to the new system.


In summary, introducing the new GST returns system substantially changes India’s tax structure, potentially improving compliance and efficiency. Businesses are set up for a more efficient and transparent tax filing process thanks to reduced forms, enhanced invoice matching, seamless input tax credit reconciliation, and modification provisions.  

Additionally, releasing an offline tool makes compliance easier for taxpayers with less technological know-how or internet access. Accepting these developments calls for in-depth knowledge and proactive adjustment. Businesses must maintain current updates, use available resources, and cultivate a compliance culture to reap the rewards of the new GST returns system fully.


  • How do you file a GST return using an offline tool?

Launch the GST Offline Utility. Ensure the GST Offline Tool is downloaded and installed in its most recent version. Select NEW. After entering the necessary information, click PROCEED. To import files, click “IMPORT EXCEL,” then choose your file. On the warning notice, choose YES, then select VIEW SUMMARY. Press “GENERATE FILE.”

  • What is the recent ITC amendment in GST?

By removing the reference to input tax credit (ITC) that has been provisionally recognized, this modification seeks to standardize the handling of ITC. It aligns it with the self-assessed ITC process described in CGST Act Section 41(1).

  • What form was introduced in the new GST return system?

One primary return and two annexures comprise the three main parts of the new GST return structure. Form GST RET-1 will be used to file the primary return, and Form GST ANX-1 and Form GST ANX-2, respectively, are needed for the annexures.

  • What is the GSTR 10 offline tool?

The official GST Portal offers the free GSTR 10 Offline Utility for offline return filing.

  • How to file GSTR-3B offline?

  • Step 1: Open the GST portal and log in. 
  • Step 2: Go to Services > Returns > Dashboard for Returns. Click “Search” after selecting the appropriate fiscal year and return filing window. 
  • Step 3: Select ‘Prepare Offline’ from the GSTR-3B tile.
  • What can be amended in the GST invoice?

At the summary and invoice levels, information and invoices can be changed. There are restrictions for every kind. Amendments must match the dates on the original invoice and contain a time restriction. Some information cannot be altered, such as converting a tax invoice into a bill of supply.

  • Is there a time limit for the GST return amendment?

The deadline for making changes to information on invoices from the previous fiscal year is November 30 of the subsequent fiscal year.

  • What are the GST ITC forms?

  • Form GST ITC-01: Input tax credit claim declaration under section 18 subclause (1). 
  • Form GST ITC-02: Statement for Transfer of Input Tax Credit in the Event of a Business Sale, Merger, Demerger, Assemblage, Lease, or Transfer according to Subsection (3) of Section 18.
  • What do you mean by the GST amendment?

Modifying or changing the data submitted during the original GST registration is called a GST registration modification. 

  •  Can the GSTR-1 invoice be amended?

You may alter a GSTR-1 already submitted for a specific tax period by including the updated information in the return.

author avatar
Niharika Kapoor Content Writer
Niharika is a Freelance Content Writer and Translator with a Master of Arts in Literature. She has 5+ years of working in the same and has worked in different industries.

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