In the process of simplifying the GST regime for smaller businesses, the GST Council has proposed new formats of quarterly returns.

Following are some brief details regarding the new forms:

  • Businesses having aggregate turnover up to Rupees 5 Crore during the preceding financial year can opt to file quarterly return in the f690ollowing forms:
    1. Quarterly (Normal) – Form GST RET-1
    2. Sahaj – Form GST RET-2
    3. Sugam – Form GST RET-3

The taxpayers opting to file a quarterly return can choose to file any of the quarterly return namely – Sahaj, Sugam or Quarterly (Normal).

Now let’s understand the working of these new proposed forms one at a time.

Sahaj

  • Taxpayers opting to file quarterly return as ‘Sahaj’ shall be allowed to declare outward supply under B2C category and inward supplies attracting reverse charge only.
  • Such taxpayers cannot make supplies through e-commerce operators on which tax is required to be collected under section 52.
  • Such taxpayers shall not take credit on missing invoices and shall not be allowed to make any other type of inward or outward supplies.
  • However, such taxpayers may make nil rated, exempted or Non-GST supplies which need not be declared in the said return.
  • For more details follow the link given below:

https://tutorial.gst.gov.in/offlineutilities/returns/NewGSTReturn_Sahaj.pdf

Sugam

  • Taxpayers opting to file quarterly return as ‘Sugam’ shall be allowed to declare outward supply under B2C and B2B category and inward supplies attracting reverse charge only.
  • Such taxpayers cannot make supplies through e-commerce operators on which tax is required to be collected under section 52.
  • Such taxpayers shall not take credit on missing invoices and shall not be allowed to make any other type of inward or outward supplies.
  • However, such taxpayers may make nil rated, exempted or non-GST supplies which need not be declared in the said return.
  • For more details follow the link given below:

https://tutorial.gst.gov.in/offlineutilities/returns/NewGSTReturn_Sugam.pdf

Quarterly (Normal)

  • Taxpayers opting to file the monthly return or Quarterly (Normal) shall be able to declare all types of outward supplies, inward supplies and take credit on missing invoices.
  • For more details follow the link given below:

https://tutorial.gst.gov.in/offlineutilities/returns/NewGSTReturn_Normal.pdf

Periodicity – Applicability and Switchover

  • The periodicity of filing return will be deemed to be monthly for all taxpayers unless quarterly filing of the return is opted for.
  • Change in the periodicity of the return filing (from quarterly to monthly and vice versa) would be allowed only once at the time of filing the first return by a taxpayer.
  • Taxpayers filing the return as Quarterly (Normal) can switch over to Sugam or Sahaj return and taxpayers filing the return as Sugam can switch over to Sahaj return only once in a financial year at the beginning of any quarter.
  • Taxpayers filing the return as Sahaj can switch over to Sugam or Quarterly (Normal) return and taxpayers filing the return as Sugam can switch over to Quarterly (Normal) return more than once in a financial year at the beginning of any quarter.
  • For newly registered taxpayers, turnover will be considered as zero and hence they will have the option to file monthly, Sahaj, Sugam or Quarterly (Normal) return.

Payment of Tax

Taxpayers opting to file the return on a quarterly basis have to make payment on a monthly basis on the supplies made during the month.

Payment of the self-assessed liabilities shall be made by <20th> of the month succeeding the month to which the liability pertains.