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In the previous article we have discussed about new GST Normal return, now in this article we will discuss on proposed GST Sahaj and Sugam Returns.

Switch over from one return to other return

Return

Switch over to

Remarks

Quarterly (Normal)

Sugam or Sahaj

only once in a F.Y. at the beginning of any quarter

Sugam

Sahaj

only once in a F.Y. at the beginning of any quarter

Sahaj

Sugam or Quarterly (Normal)

more than once in a F.Y. at the beginning of any quarter

Sugam

Quarterly (Normal)

more than once in a F.Y. at the beginning of any quarter

New GST Sahaj Return

Sr. No.

Name

Description

1

2

3

1.

Profile Option

Intimation of option for return periodicity and type of quarterly return

2.

FORM GST ANX-1

Annexure of outward supplies and inward supplies attracting reverse charge

3.

FORM GST ANX-2

Annexure of inward supplies

4.

FORM GST RET-2

Quarterly return

5.

FORM GST ANX-1A

Amendment to FORM GST ANX-1

6.

FORM GST RET-2A

Amendment to FORM GST RET-2

7.

FORM GST PMT-08

Payment of self-assessed tax

Profile Updation

Intimation of option for return periodicity and type of quarterly return

Sr. No.

Description

Option

1

2

3

4

1.

Was your aggregate turnover during the preceding financial year up to Rs. 5.00 Cr.?

     Yes

     No

2.

If reply is 'Yes' at Sr. No. 1, do you intend to file return on quarterly basis?

     Yes

    No

3.

If reply is 'Yes” at Sr. No. 2, choose your return -

(i) Sahaj

 Yes

       No

(ii) Sugam

 Yes

       No

(iii) Quarterly (Normal)

 Yes

       No

Note -

  1. 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.
  2. Periodicity of return filing will remain unchanged during the next F.Y. unless changed before filing the first return of that year.
  3. Taxpayers opting to file quarterly return can choose to file any of quarterly return namely - Sahaj, Sugam or Quarterly (Normal).
  4. 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.
  5. Such taxpayers cannot make supplies through e-commerce operators on which tax is required to be collected u/s 52.
  6. 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.
  7. such taxpayers may make Nil rated, exempted or Non-GST supplies which need not be declared in the said return.

Questionnaire for uploading information in FORM GST ANX-1

Part A - Brief questions about retaining the option given in previous tax period

Sr. No.

Description

Option

1

2

3

4

1.

I understand that the amount of tax specified in the outward supplies for which the details have been uploaded by me in this annexure shall be deemed to be the tax payable by me under the provisions of the Act.

Yes

 

2.

Would you like to change the reply to the questions regarding nature of supplies as filled in the questionnaire of the return of the last tax period, if already filled in?

     Yes

    No

Note - In case the reply to question no. 2 is 'Yes', the following questionnaire will be opened for exercising the option. In the first tax period, it would be open for all taxpayers.

Part B - Detailed Questionnaire

Sr. No.

Description

Option

1

2

3

4

1.

Have you made B2C supply (table 3A)?

Yes

No

2.

Have you received inward supplies attracting reverse charge (table 3H)?

Yes

No

Note - Option against all questions will be 'No' by default. User can select 'Yes' as per his requirement.

FORM GST ANX-1

(Details of outward supplies and inward supplies attracting reverse charge)

This Annexure will containing details of outward supplies and inward supplies attracting reverse charge . This annexure will contain details as follow:

  • Table 3A - Supplies made to consumers and un-registered persons (Net of debit / credit notes )
  • Table 3H - Inward supplies attracting reverse charge (to be reported by the recipient, GSTIN wise for every supplier, net of debit / credit notes and advances paid, if any).

Note -

  1. Registered person can upload the details of documents, any time during a quarter to which it pertains or of any prior period but not later than the due date for furnishing of return for the month of September or second quarter following the end of F.Y. to which such details pertains or the actual date of furnishing of relevant annual return, whichever is earlier except that he will not be able to upload details of the documents from 23rd to 25th of the month following the quarter.
  2. Supplies attracting reverse charge will be reported only by recipient and not by supplier in this annexure.
  3. Advances received on account of supply of services shall not be reported here. The same shall be reported in Table 3C(1) and 3C(2) of FORM GST RET-2.
  4. Place of supply shall have to be reported mandatorily for all supplies. For intra-State supplies, the POS will be the same State in which the supplier is registered.
  5. Wherever supplies are reported as net of debit / credit notes, the values may become negative in some cases and the same may be reported as such e.g. (-100).
  6. GSTIN of supplier shall be reported (wherever available) in table 3H from whom the supplies have been received. PAN may be reported in Table 3H if supplies attracting reverse charge are received from un-registered persons.

FORM GST ANX-2

(Details of auto- drafted inward supplies)

This Annexure will be auto populated containing details of inward supplies as uploaded by corresponding supplier. This annexure will contain details of credit in following categories:

Table 3A - Supplies received from registered persons (other than those attracting reverse charge)

Table 4 - contains summary of credits in Table 3A,3H with following bifurcation:

  • Credit on all documents which have been rejected (net of debit /credit notes)
  • Credit on all documents which have been kept pending (net of debit /credit notes)
  • Credit on all documents which have been accepted (including deemed accepted) (net of debit/credit notes)

Note -

  1. Details of documents uploaded by corresponding supplier(s) [irrespective of the fact whether supplier files his return on monthly or quarterly (Normal, Sahaj or Sugam) basis] will be auto-populated in this annexure on near real time basis and can be accepted or reset / unlocked by recipient.
  2. Recipient can take action on the auto-populated documents to - Accept, Reject or to keep pending on continuous basis.
  3. Accepted documents will mean that supplies reported in such document have been received before filing of return by recipient and the details given in the documents reported in FORM GST ANX-1 are correct.
  4. Accepted documents would not be available for amendment at corresponding supplier's end. However, a separate facility to handle such cases will be provided.
  5. Supplier can make corrections in the rejected documents through FORM GST ANX-1 as rejected documents would be shown to supplier.
  6. Pending action will mean that recipient has deferred the decision of accepting or rejecting the details of the invoices.
  7. ITC in respect of pending invoices shall not be accounted for in table 4A of the main return (FORM GST RET-2) of recipient and such invoices would be rolled over to FORM GST ANX-2 of the next tax period.
  8. Pending invoices will not be available for amendment by supplier until rejected by recipient.
  9. Any document, on which an affirmative action of either accepting the document or keeping the document pending or rejecting the document is not taken by recipient in his FORM GST ANX-2, shall be deemed to be accepted upon filing of return by him. ITC on such deemed accepted documents shall be reflected / shown in table 4A of the main return (FORM GST RET-2).
  10. Status of return filing (not filed, filed) by supplier will also be made known to recipient in FORM GST ANX-2 of the quarter after the due date of return filing is over. This status, however, does not affect the eligibility or otherwise of ITC which will be decided as per the Act/Rules.
  11. FORM GST ANX-2 will be treated as deemed filed after filing of main return (FORM GST RET-2) relating to the quarter.

FORM GST RET-2

Quarterly Return (Sahaj)

Form GST RET-2 will contain all details of ANX-1 and ANX-2. Other details like Advances, Reversal of Credits, ITC declared during first two month of Quarter, TDS, TCS, Interest, late fees, Payment of taxes and Refund from electronic cash ledger will be filled manually.

Note -

  1. Facility to file Nil return through SMS will also be available if no supplies have been made or received.
  2. After uploading the details of supplies in FORM GST ANX-1 and taking action on the documents auto-populated in FORM GST ANX-2, the taxpayer shall file the main return in FORM GST RET-2.
  3. Information declared through FORM GST ANX-1 and FORM GST-ANX-2 shall be auto- populated in the main return (FORM GST RET-2).
  4. Supplier can report excess tax collected from recipients, if any, in the main return (FORM GST RET-2) under any other liability in S No. 2 of table 3A.
  5. Rejection of the details of documents wrongly uploaded by suppliers, pendency of supplies not received but available in the auto-populated details of documents, reversals, adjustments etc. shall be auto-populated in table 4.
  6. Amount of TDS/TCS shall be credited in electronic cash ledger which will be based on returns filed in FORM GSTR-7 and FORM GSTR-8 by deductors u/s-51 and persons required to collect tax u/s-52 respectively.

However, since taxpayers filing Sahaj return are not allowed to supply through E-Commerce operators on which tax is required to be collected under Section 52 this table is to be used only for transition from the old return system to the new return system or switching during current return system

  1. 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 system. Other interest due to reversals etc. shall be entered by taxpayer on self-assessment basis.
  2. Payment of tax can be made by utilizing ITC under the same head or cross-utilizing from other heads in accordance with the provisions of Act read with the rules made there under. Balance payment of tax can be made in cash.
  3. Payment of tax on account of supplies attracting reverse charge, interest, late fee, penalty and others shall be made in cash only.
  4. Suggested utilization of ITC will be made available in the payment table. However, the taxpayer can make changes in the suggested ITC utilization as long as such changes are as per provisions of the Act read with the rules made there under.
  5. Adjustment of negative liability of the previous tax period shall be allowed to be made along with the current tax period's liability.
  6. Viewing of the balance amount available in electronic cash and electronic credit ledger will be made available before making payment.
  7. Value of inward supplies attracting reverse charge mentioned in table 3B will not be added to the turnover. Only the tax amount will be added to the computation of tax liability.
  8. Facility of creating a challan for making payment will be made available if the balance in the electronic cash ledger is insufficient to discharge the liabilities.
  9. Adjustment to liabilities or ITC relating to the period prior to the introduction of current system of return filing shall be reported in table 3 (tax liabilities) or table 4 (input tax credit), as the case may be.

New GST Sugam Return

Sr.No.

Name

Description

1

2

3

1.

Profile Option

Intimation of option for return periodicity and type of quarterly return

2.

FORM GST ANX-1

Annexure of outward supplies and inward supplies attracting reverse charge

3.

FORM GST ANX-2

Annexure of inward supplies

4.

FORM GST RET-3

Quarterly return

5.

FORM GST ANX- 1A

Amendment to FORM GST ANX-1

6.

FORM GST RET-3A

Amendment to FORM GST RET-3

7.

FORM GST PMT- 08

Payment of self-assessed tax

Profile Updation

Intimation of option for return periodicity and type of quarterly return

Sr. No.

Description

Option

1

2

3

4

1.

Was your aggregate turnover during the preceding financial year upto Rs. 5.00 Cr.?

     Yes

     No

2.

If reply is 'Yes' at Sr. No. 1, do you intend to file return on quarterly basis?

     Yes

    No

3.

If reply is 'Yes” at Sr. No. 2, choose your return -

(i) Sahaj

 Yes

       No

(ii) Sugam

 Yes

       No

(iii) Quarterly (Normal)

 Yes

       No

Note -

  1. Periodicity of filing return will be deemed to be monthly for all taxpayers unless quarterly filing of the return is opted for.
  2. 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.
  3. Change in 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.
  4. Periodicity of the return filing will remain unchanged during the next financial year unless changed before filing the first return of that year.
  5. Taxpayers opting to file quarterly return can choose to file any of the quarterly return namely - Sahaj, Sugam or Quarterly (Normal).
  6. 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.
  7. Such taxpayers cannot make supplies through e-commerce operators on which tax is required to be collected under section 52.
  8. Such taxpayers shall not take credit on missing invoices and shall not be allowed to make any other type of inward or outward supplies.
  9. Such taxpayers may make Nil rated, exempted or Non-GST supplies which need not be declared in said return.

Questionnaire for uploading information in Form GST ANX-1

Part A - Brief questions about retaining the option given in previous tax period

Sr. No.

Description

Option

1

2

3

4

1.

I understand that the amount of tax specified in the outward supplies for which the details are being uploaded by me in this annexure shall be deemed to be the tax payable by me under the provisions of the Act.

     Yes

 

2.

Would you like to change the reply to the questions regarding nature of supplies as filled in the questionnaire of the return of the last tax period, if already filled in?

     Yes

    No

Note - In case the reply to question No. 2 is 'Yes', the following questionnaire will be opened for exercising the option. In the first tax period, it would be open for all taxpayers.

Part B - Detailed Questionnaire

Sr. No.

Description

Option

1

2

3

4

1.

Have you made B2C supply (table 3A)?

Yes

No

2.

Have you made B2B supply (table 3B)?

Yes

No

3.

Have you received inward supplies attracting reverse charge (table 3H)?

Yes

No

Note - Option against all questions will be 'No' by default. User can select 'Yes' as per his requirement.

FORM GST ANX-1

(Details of outward supplies and inward supplies attracting reverse charge)

This Annexure will containing details of outward supplies and inward supplies attracting reverse charge . This annexure will contain details as follow:

  • Table 3A - Supplies made to consumers and un-registered persons (Net of debit / credit notes )
  • Table 3B - Supplies made to registered persons (other than those attracting reverse charge)(including edit/amendment)
  • Table 3H - Inward supplies attracting reverse charge (to be reported by the recipient, GSTIN wise for every supplier, net of debit / credit notes and advances paid, if any).

Note -

  1. Registered person can upload the details of documents any time during a quarter to which it pertains or of any prior period but not later than the due date for furnishing of return for the month of September or second quarter following the end of F.Y. to which such details pertains or the actual date of furnishing of relevant annual return whichever is earlier except that he will not be able to upload details of documents from 23rd to 25th of the month following the quarter.
  2. Supplier can upload the documents for any supply on real time basis. Facility for accepting such documents by recipient shall be made available. Details of documents uploaded by supplier will be shown to the concerned recipient also on near real time basis.
  3. Details of documents issued during the tax period or of any prior period by supplier and uploaded by him after filing of the return for such prior tax period will be accounted for towards the tax liability of supplier in the return in which such details have been uploaded.
  4. Advances received on account of supply of services shall not be reported here. Same shall be reported in Table 3C(3) and adjustment thereof shall be reported in table 3C(4) of FORM GST RET-3.
  5. Supplies attracting reverse charge will be reported only by recipient and not by the supplier in this annexure.
  6. Place of supply shall have to be reported mandatorily for all supplies. For intra-State supplies, the POS will be the same State in which the supplier is registered.
  7. GSTIN of supplier shall be reported (wherever available) in table 3H from whom the supplies have been received. PAN may be reported in table 3H if supplies attracting reverse charge are received from unregistered suppliers.
  8. Wherever supplies are reported as net of debit / credit notes, the values may become negative in some cases and the same may be reported as such e.g. ( -100).

FORM GST ANX-2

(Details of auto- drafted inward supplies)

This Annexure will be auto populated containing details of inward supplies as uploaded by corresponding supplier. This annexure will contain details of credit in following categories:

Table 3A - Supplies received from registered persons (other than those attracting reverse charge)

Table 4 - contains summary of credits in Table 3A,3B,3H with following bifurcation:

  • Credit on all documents which have been rejected (net of debit /credit notes)
  • Credit on all documents which have been kept pending (net of debit /credit notes)
  • Credit on all documents which have been accepted (including deemed accepted) (net of debit/credit notes)

Note -

  1. Details of documents uploaded by corresponding supplier(s) [irrespective of the fact whether supplier files his return on monthly or quarterly (Normal, Sahaj or Sugam) basis] will be auto-populated in this annexure on near real time basis and can be accepted or reset / unlocked by recipient up to the 10th of the month following the month in which such documents have been uploaded.
  2. Recipient can take action on the auto-populated documents to - Accept, Reject or to keep pending on continuous basis after 10th of the month following the month in which such documents have been uploaded.

However, in case of quarterly return filers communication of such rejected documents and any further action on such rejected documents shall be done only in the return for the next quarter.

  1. Accepted documents will mean that supplies reported in such document have been received before filing of return by recipient and details given in the documents reported in FORM GST ANX-1 are correct.
  2. Accepted documents would not be available for amendment at the corresponding supplier's end. However, a separate facility to handle such cases will be provided.
  3. For the purposes of the return process, any invoice with an error that cannot be corrected through a financial debit / credit note shall be rejected.
  4. Supplier can make corrections in the rejected documents through FORM GST ANX-1 as the rejected documents would be shown to the supplier.
  5. Pending action will mean that recipient has deferred the decision of accepting or rejecting the details of the invoices.
  6. ITC in respect of pending invoices shall not be accounted for in table 4A of the main return (FORM GST RET-3) of recipient and such invoices would be rolled over to FORM GST ANX-2 of the next tax period.
  7. Pending invoices will not be available for amendment by supplier until rejected by recipient.
  8. Any document on which an affirmative action of either accepting the document or keeping the document pending or rejecting the document is not taken by recipient in his FORM GST ANX-2 shall be deemed to be accepted upon filing of the return by him. ITC on such deemed accepted documents shall be reflected / shown in table 4A of main return (FORM GST RET-3).
  9. Status of return filing (not filed, filed) by supplier will also be made known to recipient in FORM GST ANX-2 of the tax period after the due date of return filing is over. Recipients would be able to check the return filing status of suppliers. This status, however, does not affect the eligibility or otherwise of ITC which will be decided as per the Act/Rules.
  10. Separate functionality would be provided to search and reject an accepted document on which credit has already been availed. Input tax credit availed on such document shall be shown for reversal in table 4B(1) of FORM GST RET-3 which may be adjusted in table 4A(6) of FORM GST RET-3 to arrive at the credit availed. However, such reversal of credit for the recipient will be with interest as per provisions of the law read with the rules made thereunder.
  11. FORM GST ANX-2 will be treated as deemed filed upon filing of the main return (FORM GST RET-3) relating to the tax period.

FORM GST RET-3

Quarterly Return (Sugam)

Form GST RET-3 will contain all details of ANX-1 and ANX-2. Other details like Advances, Reversal of Credits, ITC declared during first two month of Quarter, TDS, TCS, Interest, late fees, Payment of taxes and Refund from electronic cash ledger will be filled manually.

Note -

  1. Facility to file Nil return through SMS will also be available if no supplies have been made or received.
  2. After uploading the details of supplies in FORM GST ANX-1 and taking action on the documents auto-populated in FORM GST ANX-2, the taxpayer shall file the main return in FORM GST RET-3.
  3. Information declared through FORM GST ANX-1 and FORM GST-ANX-2 shall be auto- populated in the main return (FORM GST RET-3).
  4. Supplier can report excess tax collected from the recipients, if any, in the main return (FORM GST RET-3) under any other liability in Sr. No. 3 of table 3A.
  5. Rejection of the details of documents wrongly uploaded by suppliers, pendency of supplies not received but available in the auto-populated details of documents, reversals, adjustments etc. shall be auto-populated in table 4.
  6. Amount of TDS/TCS shall be credited in electronic cash ledger which will be based on returns filed in FORM GSTR-7 and FORM GSTR-8 by deductors under section 51 and persons required to collect tax under section 52 respectively. However, since taxpayers filing the Sugam return are not allowed to supply through E-Commerce operators on which tax is required to be collected under Section 52 this table is to be used only for transition from the old return system to the new return system or switching during current return system.
  7. 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 taxpayer on self-assessment basis.
  8. Payment of tax can be made by utilizing ITC under the same head or cross-utilizing from other heads in accordance with the provisions of law/rules . Balance payment of tax can be made in cash.
  9. Suggested utilization of ITC will be made available in the payment table. However, taxpayer can make changes in the suggested ITC utilization as long as such changes are as per provisions of the Act/rules .
  10. Payment of tax on account of supplies attracting reverse charge, interest, late fee, penalty and others shall be made in cash only.
  11. Adjustment of negative liability of the previous tax period shall be allowed to be made along with the current tax period's liability.
  12. Viewing of the balance amount available in electronic cash and electronic credit ledger will be made available before making payment.
  13. Value of inward supplies attracting reverse charge and import of services mentioned in table 3B will not be added to the turnover. Only tax amount will be added to the computation of tax liability.
  14. Facility of creating a challan for making payment will be made available if the balance in the electronic cash ledger is insufficient to discharge the liabilities.
  15. Adjustment to liabilities or input tax credit relating to the period prior to the introduction of current system of return filing shall be reported in table 3 (tax liabilities) or table 4 (input tax credit), as the case may be.

Limitations applicable to GST Sahaj and Sugam Returns:

  • Can't do supply through E-commerce operator attracting provisions of section 52 of CGST Act
  • Can't take credit of missing Invoices
  • Can do Nil Rated, Exempted or Non-GST supply, but not to be reported in these forms.

Disclaimer: The contents of this article are solely for informational purpose. It does not constitute professional advice or a formal recommendation. No part of this article should be distributed or copied without express written permission of the author.


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Category GST, Other Articles by - Ruchit Agarwal 



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