GST Sugam Return

In May 2019, a prototype of the offline tool has been shared on the GST Portal to give the users a look and feel of the tool. The look and feel of the offline tool would be the same as that of the online portal.

The Government has announced that simplified GST returns (Sahaj & Sugam) filing mechanism would be introduced for taxpayers with a turnover below Rs. 5 crores. These returns would require lesser information to be declared as when compared to a regular taxpayer

Latest Updates

14th March 2020*
The new GST return system will be implemented from October 2020.
The present return filing system (GSTR-1, 2A & 3B) will continue until September 2020.
*Subject to CBIC notification

What is GSTR SUGAM?

GST Sugam is a proposed simplified returns form which is to be introduced by the GST Council from October 2019 onwards. A taxpayer with a turnover of up to Rs. 5 crores in the financial year will get an option to file this return. This form will be made available to only those small taxpayers engaged in both B2B (Business to Business – supplies to GST registered persons), and B2C (Business to Consumer – supplies to consumers and unregistered persons under GST) supplies in India. In the 28th GST council meeting, members approved quarterly GST returns (Sahaj & Sugam) filing for small taxpayers with a  turnover of up to Rs.5 crores (as against the initial limit of Rs.1.5 crores). However, the tax is to be paid monthly via a challan.

Who can file GSTR SUGAM?

Small taxpayers with a turnover of up to Rs 5 crores and engaged in both B2B and B2C supplies can opt for the GSTR SUGAM form to file their quarterly returns.

What are the contents of GSTR SUGAM?

GST Sugam consists of 2 annexures to the return and the return itself.

NOTES ON ANNEXURES:

• The annexures shall be uploaded before filing the return for any tax period.
• Details of the invoices relating to outward supplies made to registered persons (B2B) can be uploaded in real-time during the quarter.
• Supplies other than those made to consumers and unregistered persons (B2C) and registered persons (B2B) in the domestic market cannot be made through this annexure.
• Those who have transactions in the international market will file the annexure for quarterly returns.
• This annexure can also be used to report debit and credit notes relating to supplies made to registered persons (B2B).
• At least, a four-digit level reporting of HSN code will be mandatory.

NOTES ON MAIN RETURN:

• A taxpayer who has made supplies to consumers and un-registered persons (B2C) and to registered persons (B2B) in the domestic market only can file this return.
• Input tax credit availed earlier during the first two months of the quarter will be adjusted from the claim. If the balance of claim turns out to be negative, then it will be added to the liability for the same quarter.
• Tax paid during the first two months of the quarter will be adjusted against the total liability of the quarter.
• Payment can be made out of cash or credit as per rules.
• Reversal of credit under rule 37, 39, 42 & 43 shall be reported as net of reclaimed ITC if any. Ineligible credit shall also be reported under reversal.
• Adjustment in ITC, if any due to transition from the composition scheme or otherwise shall be reported in table 4.

All about the system of Invoice upload

The recipients from these small taxpayers can avail input tax credit based on the invoice uploaded by the supplier and therefore, the small taxpayers would be given online facility to continuously upload and view invoices on a daily basis. The invoices uploaded by 10th of the following month would be available as input tax credit to the recipient in the relevant month similar to a large taxpayer who file monthly returns.

When must GST SUGAM be filed?

GSTR Sugam shall be filed quarterly. But the taxpayer has to pay tax monthly.

How to differentiate between SUGAM, SAHAJ and Quarterly returns?

All you need to understand about the New Simplified GST Returns

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