New Avtar of GST Monthly / Quarterly Return filing system: Sahaj Sugam and Normal GST Monthly / Quarterly Returns

At the onset of GST, there was concept of filing GSTR-1, GSTR-2 and GSTR-3 but it worked only for one month and later it was decided by council to file GSTR-1 and GSTR-3B, which is being implemented till time. Fundamental principle and procedure followed under the old concept of GSTR 1, 2 and 3 can’t be ignored. There was need to revamp old scheme to establish ease of filing GST returns.

To address this issue, 28th GST Council Meeting proposed the idea of Sahaj, Sugam and Normal (monthly and quarterly returns). Details of this proposed new scheme of Return filing is now available at GST Portal. Sahaj, Sugam and Normal are built on the fundamental concept of GST and will robust return filing system. Paradigm shift of real time uploading of invoices by Supplier in Form GST ANX 1 and automatic visibility of all purchases and available Input Tax credit in Form ANX 2 will create more transparency and mitigate Tax evasion. In GST regime, most important document is invoice and new scheme starts from uploading invoices itself and most of the functions are auto populated thereby demystifying GST Return filing system.

Well Stated by our Father of Nation, Mahatama Ghandhi that Withholding of payment of taxes is one of the quickest methods of overthrowing a government and well understood by Government. Therefore under new scheme too, Payment of taxes is to be made on monthly bases by filing Form PMT-08 and this Payment of the self-assessed liabilities shall be made by 20th of the month succeeding the month to which the liability pertains.

Let’s understand the new scheme

Sahaj Features:

  • To opt Sahaj, aggregate Turnover should be up to Rs 5 Cr.
  • It is quarterly return.
  • Taxpayer can 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 tax payers shall not take credit on missing invoices and shall not be allowed to make any other type of inward or outward supplies. Such taxpayers may make Nil rated, exempted or Non-GST supplies which need not be declared in the said return.

Relevant forms under Sahaj Scheme:

Amendment in Return is now possible.

Below is relevant applicable amendment Forms

Sugam Features:

  • To opt Sugam, aggregate Turnover up to Rs 5 Cr.
  • It is a quarterly return.
  • Taxpayer can 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 tax payers shall not take credit on missing invoices and shall not be allowed to make any other type of inward or outward supplies.
  • Such taxpayers may make Nil rated, exempted or Non-GST supplies which need not be declared in said return.

Relevant forms under Sugam Scheme:

Amendment in Return is now possible.

Below is relevant applicable amendment Forms

Sahaj and Sugam key points:

  • Interest and late fee to the extent of late filing of return, making late payment of taxes, uploading preceding tax periods’ invoices shall be computed by the system. Other interest due to reversals etc. shall be entered by the taxpayer on self-assessment basis.
  • Payment of tax on account of supplies attracting reverse charge, interest, late fee, penalty and others shall be made in cash only.
  • Details of documents uploaded by the supplier will be shown to the concerned recipient also on near real time basis

Normal (Monthly / Quarterly) Features:

  • Any registered taxpayer can opt Normal system with open choice either to opt monthly or quarterly filing of Form RET 01
  • Taxpayers opting to file monthly return or Quarterly (Normal) return shall be able to declare all types of outward supplies, inward supplies and take credit on missing invoices
  • All suppliers with annual aggregate turnover of more than Rs. 5 crore and that in relation to exports, imports and SEZ supplies will upload HSN level data. HSN code shall be reported at least at six digit level for goods and at least at six digit level for services. Other taxpayers (turnover upto Rs. 5 crore) shall have an optional facility to report HSN code in the relevant table or leave it blank
  • Place of supply shall have to be reported mandatorily for all supplies.

Relevant Forms under Normal( Monthly/Quarterly) Scheme

Amendment in Return is now possible.

Below is relevant applicable amendment Forms

Procedure to file NIL return

Now just send SMS to file Nil Return

Conclusion: This new scheme of return filing will be implemented first on pilot basis and once accepted and tested successfully, will become new Avtar of GST return filing system. Hope for the Best!

Contributed by CS Payal Kataria

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