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New Returns Under GST: A Complete Guide


Firms and taxpayers must comprehend new GST returns since doing so will help them efficiently comply with the altered tax laws. Understanding these reports enables firms to adhere to the GST structure while accurately reporting their transactions, claiming input tax credits, and maintaining seamless operations. Businesses must be informed and compliant with the changing GST legislation because failing to understand these new returns may result in compliance concerns and fines.

New GST Returns

  • GST ANX-1: This form contains information on outward supplies that the supplier has submitted and is continuously and in real-time uploaded. It takes the place of GSTR-1.
  • GST ANX-2: This form is a dynamic ITC statement and contains information about inward supplies automatically filled out from the supplier’s ANX-1. It takes the place of GSTR-2.
  • GST RET-1: This is taxpayers’ primary return form for making ITC claims and paying off their tax debts. It combines the information from ANX-1 and ANX-2 to give a complete picture of the taxpayer’s commercial dealings.

Types of new GST returns

There are three primary categories of returns under the new GST returns system:

  • Normal Return: GST RET-1 is the normal (monthly) return most taxpayers are expected to submit. It includes information about outgoing and incoming commodities as well as tax payments. Regular taxpayers submit it monthly to obtain input tax credits and pay their owed taxes.
  • Sahaj (Quarterly) Return: For small taxpayers with a low turnover, the GST RET-2, also known as Sahaj, is a streamlined quarterly return. It can be submitted by taxpayers who only conduct B2C (business-to-consumer) transactions rather than B2B (business-to-business) ones.
  • Sugam (Quarterly) Return: The GST RET-3, sometimes called Sugam, is a quarterly return made specifically for small taxpayers. It is designed for companies who engage in only a small amount of B2B and B2C transactions and offers a less complicated structure than the standard return.

Comparison with the old returns system

The new GST returns system is a substantial improvement over the previous system in terms of simplicity, regularity, and data correctness.

  • Simplicity: The new system simplifies the procedure by lowering the number of forms that must be filed. It also simplifies the process of understanding and adhering to GST regulations by replacing several forms with just three essential ones.
  • Frequency: Under the previous system, taxpayers must submit monthly and annual returns (GSTR-1, GSTR-2, and GSTR-3) (GSTR-9). The new method lessens the workload by requiring small taxpayers to submit quarterly returns (Sahaj and Sugam) while ordinary taxpayers continue to submit monthly returns (GST RET-1).
  • Data Accuracy: The new returns system minimises errors and discrepancies by uploading supply details (GST ANX-1) in real-time and auto-populating purchase details (GST ANX-2).
  • Compliance burden: The new system’s streamlined procedure and decreased filing frequency lessen the compliance load on taxpayers, particularly small enterprises.

How to File New Returns under GST?

A step-by-step guide to filing new GST returns

Following are the steps involved in submitting new GST returns:

  • Registration: Ensure you are GST-registered and have the required login information.
  • Visit the GST Portal: Log in to the GST portal. Utilize your registered login information to access the GST portal.
  • Select the Return Form: Choose the correct form based on your taxpayer category: GST RET-1 for ordinary taxpayers, GST RET-2 (Sahaj), or GST RET-3 (Sugam) for small taxpayers.
  • Fill in the Details: Enter the necessary information, such as outgoing supplies in GST ANX-1, and view automatically filled inbound supplies in GST ANX-2.
  • Verify and submit: Check the information, make necessary adjustments, and reconcile everything. After that, submit the return online.
  • Payment: If applicable, pay the tax debt online and submit an input tax credit claim.
  • Acknowledgement: After successful submission, you will receive an acknowledgement verifying the filing of your return.

Common errors to avoid

Avoiding common errors when submitting GST returns is crucial for compliance. Correct data input, missed transaction reporting, late filing, the mismatch between GST ANX-1 and ANX-2, non-payment of tax duties, erroneous ITC claims, failure to update returns, and failure to file quarterly returns for qualified taxpayers are major errors to avoid. Businesses can avoid fines, interest, and compliance difficulties by being thorough, double-checking entries, and following deadlines. A seamless and error-free filing process will be guaranteed by maintaining accurate records and keeping up with GST regulations.

Tips for a smooth filing

  • To make filing easier, keep structured, current records of all transactions.
  • Regularly Review and reconcile your outgoing and incoming goods to ensure no inconsistencies.
  • For accurate data entry, familiarize yourself with the revised return forms.
  • To avoid fines and interest, submit returns before deadlines.
  • Consider speaking with tax professionals or employing GST software to ensure seamless and proper filing.


In conclusion, firms must comprehend the new GST returns method to accurately comply with tax legislation. With fewer forms, better data accuracy, and lessened compliance load, the system streamlines filing. Important considerations for avoiding penalties include timely filing, accurate data entry, and proper ITC claims. Businesses can gain from using services like those offered by Kanakkupillai, a reputed tax and accounting solutions supplier, concerning the future of GST return filing. Businesses can easily navigate the changing GST landscape with the help of our knowledge and assistance, assuring easy filing while adhering to tax regulations.


1. How do the new returns differ from the old returns system?

The new GST returns differ from the old ones because they use fewer forms, small taxpayers must now file quarterly, and the GST ANX-1 allows for real-time reporting of external supplies.

2. Will the new returns system impact my business?

Yes, the new GST returns system affects you depending on your company’s size and operations. Keep up with the most recent recommendations.

3. Do I need to file all the new returns under GST?

You are not required to submit all new GST returns. You must file a specific kind of return depending on your revenue and business operations. Regular taxpayers submit a GST RET-1 form, whereas small taxpayers may submit a Sahaj or Sugam form if they qualify.

4. Can I revise my filed returns under the new system?

The new GST returns system allows you to revise your submitted returns. If you find any problems or omissions, you can fix them within the set deadlines and file a revised return.

5. Do I need a professional to file my returns under the new system?

Although it is not mandatory, it is strongly advised to use GST filing software or obtain guidance from a trained tax expert. Professionals like Kanakkupillai can assist you in negotiating complexity, ensuring proper and timely filing, and efficiently complying with the new GST returns system. Their knowledge can reduce the possibility of mistakes and save you time.


Kanakkupillai is your reliable partner for every step of your business journey in India. We offer reasonable and expert assistance to ensure legal compliance, covering business registration, tax compliance, accounting and bookkeeping, and intellectual property protection. Let us help you navigate the complex legal and regulatory requirements so you can focus on growing your business. Contact us today to learn more.