New GST Returns: Sahaj and Sugam

New Annual Returns

The new GST simplified Return forms launched by the CBDT are of 3 types. Sahaj Return forms, Sugam Return forms and GST Return forms for normal taxpayers. The forms have been categorized based on the tax payer categories they will be applicable for. Out  of these the Sahaj and Sugam forms are the GST Return forms that have been introduced newly based on the turnover and the types of inward and outward supplies of a business.

GST form applicability criterion for Normal, Sahaj or Sugam

Here is an explanation of how to choose the right form applicable to you.

  1. The simplified returns lay emphasis on the gross turnover that your business generates during a financial year and hence if your turnover exceeds Rs 5 cr then you compulsorily require filing monthly returns.
  2. In case the turnover is below this threshold limit of Rs 5 Cr then you have an option to choose for quarterly return filing or monthly return filing.
  3. If you choose to file quarterly returns you may choose from amongst the three returns – normal returns – GST RET 01, Sahaj returns – GST RET 02 or Sugam returns – GST RET 03
  4. Sahaj returns are applicable to those whose outward supplies or sales include only B2C sales and whose inward supplies include supplies attracting reverse charge
  5. Sugam returns are applicable to those whose outward supplies include B2B and B2C sales and inward supplies include supplies attracting reverse charge
  6. Exports, Imports, Supplies to SEZ units and deemed exports cases cannot opt for Sahaj or Sugam forms

The earlier GSTR 1, 2, 3 and 3B will now be discontinued. In fact the GSTR 1 form for reporting sales / outward supplies is now replaced by GST ANX – 1 and GSTR 2 used for reporting purchases / inward supplies is now replaced by GST ANX – 2. Hence now you just need to fill these in and not file them separately but only along with the GST return form is applicable to you – either GST RET – 1/2/3.

Exercising the option to choose between GST forms, before you choose the forms you must know which form is applicable to you from amongst normal, Sahaj and Sugam GST returns.

The options under the new regime are as below

  1. Option to choose between monthly and quarterly return filing. This option can be taken at the start of the year only.
  2. Option to choose between filing a normal return to Sahaj or Sugam. This can be taken only once in a financial year before the start of any quarter
  3. Option to choose between filing Sahaj or Sugam return. This can be taken only once in a financial year before the start of any quarter
  4. Option to choose between filing normal return to Sugam. This can be taken more than once as required in a financial year before the start of any quarter

Businesses filing the Sahaj and Sugam returns cannot claim input credit on missing invoices. They also cannot report on nil rated, exempted and non-GST supplies. If you are filing normal returns then you may report all types of inward and outward supplies.

In effect, the Sahaj and Sugam returns are options given to taxpayers to ease GST tax return filing by reducing the number of returns to be filed and making sure that compliances are reduced.

The Simplified GST Returns will be launched in a few months and the offline utilities where the taxpayers can fill in the details of their sales and purchases have already been made live. The GST ANX 1 and ANX 2 are the forms that need to be filled in for the first few months before you can finally file the GST RET 01 return by the end of the year.

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