The Government of India is set to implement its new GST returns named SAHAJ and SUGAM for all the small taxpayers from later this year. The implementation of these returns is expected to extensively simplify the GST compliance for the small scale businesses. A taxpayer can file these returns every quarter or every month.
GST SAHAJ Return
Any small taxpayer who has opted for quarterly GST return filing and is only associated with the B2C transaction is liable to file the SAHAJ GST return. The taxpayer should also have an annual turnover of less than ₹ 5 crores. If initiating new business, he will also be allowed to file GST SAHAJ return as the transaction in the previous transaction would amount to zero.
If you are the taxpayer under SAHAJ, you would be allowed to declare the supply only under B2C category and inward supplies attracting the reverse charge. Also, you would not be invited to make supplies through online operators or invoices.
Filing the SAHAJ Returns-
To start filing GST SAHAJ return, the taxpayer must first opt for the return type on the GST Portal.
Once opted for a return type, a 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. Once the monthly or quarterly return type is selected, the periodicity of filing return will remain unchanged over the next financial year unless changed before filing the first return of that year.
While filing the SAHAJ ITR, the contents of the return include:
- Basic Details like the GSTIN, Legal Name, Trade name of the Taxpayer
- Details of the suppliers made
- Reporting of HSN code- at least 4 digit level is mandatory
- Interest and late fee details
- Payment of tax details
- Verification
GST SUGAM Return
A taxpayer with an annual turnover of up to ₹ 5 crores is applicable to file the SUGAM return. This is made available to only those taxpayers who are involved in both the B2B and B2C supplies in India.
Here as well, the taxpayers would not be allowed to make supplies through the e-commerce or invoices.
Filing the SUGAM Returns-
The SUGAM Return is expected to be filed quarterly or monthly via challan.
The detailed format of SUGAM Returns Form
The SUGAM Returns is filed for 2 supplies made, the return of supplies and the details of outward supplies.
The contents of the return of supplies form include:
- The GSTIN
- Legal Name of the registered person, trade name, ARN and Date of the ARN
- Supplies made and tax liability
- Summary of inward supplies for claiming the input tax credit
- Interest and late fee liability details
- Payment of tax
- Verification
While, the contents of return for outward supplies include, The GSTIN, Legal Name of the registered person, trade name, ARN and Date of the ARN, Details of outward supplies made to registered persons, consumers and un-registered persons and inwards supplies, HSN wise summary of supplies, and verification.
So, if you are a small taxpayer owning a small scale business, there stands a need for you to file these newly generated GST returns for ensuring the smooth functioning of your business. File these before time to avoid the non-compliance penalty.