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.
Two types of quarterly returns i.e. SAHAJ & SUGAM will be introduced for taxpayers with a turnover below 5 crores. This article focuses on GST ‘SAHAJ’ return with respect to taxpayers engaged in B2C supplies
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
Update as on 20 September 2019
As per the decision made at the 37th GST council meeting, the implementation of the new GST return system for all taxpayers and for all forms stands deferred to April 2020 from the earlier month of October 2019
Update as on 11th June 2019
The Ministry of Finance has released the transition plan for the proposed GST new return system. The same will be launched on a trial basis from July 2019 onwards, and will be implemented phase-wise from October 2019 onwards.
1. What is GST SAHAJ?
GST SAHAJ is a simplified one-page GST summary return that is to be introduced from October 2019 onwards. Taxpayers with a turnover of up to Rs.5 crores in the last financial year and who are in the B2C supplies (supplies to consumers and un-registered persons) may opt to file this return. However, payments of tax have to be made monthly through a challan.
2. Who can file GSTR SAHAJ?
Small taxpayers with a turnover of up to Rs 5 crores and engaged only in B2C supplies can opt to file the quarterly returns in GSTR SAHAJ form.
3. What are the contents of GSTR SAHAJ?
Table 1 and 2
GSTIN,trade name, legal name, ARN, and the date of filing are auto-populated.
Summary of outward supplies and inward supplies attracting a reverse charge
Details of outward supplies to consumers and unregistered persons and inward supplies on which reverse charge is applicable will be auto-populated in this table from Annexure 1.Details about advances and liabilities pertaining to prior period need to be inputted.
Summary of inward supplies for claiming ITC
All the details will get auto-populated in this table from Annexure 1 and 2.Details about ITC reversal needs to be manually inputted.
Amount of TDS/TCS credit received in electronic cash ledger
Amounts will be credited in the electronic cash ledger based on returns filed by deductors in Form GSTR -7 and GSTR-8.
Interest and late fee liability
Interest and late filing fee arising due to the late filing of the return, late payment of taxes and uploading of preceding period invoices will be auto-calculated by the system. Any other interest payment liability should be self-assessed by the taxpayer.
Payment of tax
The taxpayer can make payment by utilizing ITC and then the balance can be paid in cash. However, payment arising due to reverse charge, interest, and penalty should be compulsorily paid in cash.
Refund claimed from electronic cash ledger
The details will be auto-populated from electronic cash ledger.
A taxpayer has to verify the information provided by signing the return and filing the same.
i. A taxpayer who has made supplies to consumers and un-registered persons (B2C supplies) in the domestic market can only opt to file this return.
ii. For inter-state outward supplies made during the tax period, place of Supply (POS) will be reported.iii. Input tax credit availed earlier during the first two months of the quarter will be adjusted from the claim. If balance turns out to be negative, then it will be added to the liability for the same quarter.iv. Tax paid during the first two months of the quarter will be adjusted against the total liability of the quarter.v. Payment can be made out of cash or credit as per rules.vi. Reversal of credit under rule 37, 39, 42 & 43 shall be reported as a net of reclaimed ITC if any. Ineligible credit shall also be reported under reversal.vii. Adjustment, if any due to transition from the composition scheme or otherwise shall be reported in table 4 for accounting into ITC.viii. At least, four digit level Reporting of HSN code will be mandatory.
ix. A taxpayer can file ‘Nil’ return only if Annexure 1 has not been uploaded and no details are auto-populated in Annexure 2.
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 facility to continuously upload invoices in the normal course. 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 files the monthly returns.
5. When must GST SAHAJ be filed?
GST Sahaj shall be filed quarterly but the taxpayer has to pay tax monthly.
6. How to differentiate between SAHAJ, SUGAM and Quarterly returns?
Applicable to small taxpayers making only B2C supplies
Applicable to small taxpayers making supplies only to consumers and other businesses (B2C and B2B)
Applicable to small taxpayers making exports, imports, supplies to B2C, B2B, SEZ, etc.
Sahaj is a predetermined profile of the quarterly return.
Sugam is a predetermined profile of the quarterly return.
This is not a predetermined profile but a taxpayer will have the option to create a profile to file through this return.
7. All you need to understand about the New Simplified GST Returns