GST

GST Sugam Return Filing Form Introduced by the Government

The Indian government has introduced new GST return filing mechanism for small businesses whose turnover is below 5 Crore rupees. This GST return filing system was introduced in the 28^th GST council meeting^[1] (See “Simplification of GST Returns”) held on 21^st July 2018. The government introduced a simplified form for GST return filing in which taxpayers would need to fill less information than before in comparison to regular taxpayer. This new introduced GST filing system is known as GSTR Sahaj and Sugam. This article is describing GST Sugam Return Filing.

We are going to cover the topics mentioned below in detail:

• What is GST Sugam?
• Eligibility for filing GST Sugam
• When can you file GSTR Sugam?
• Contents of GSTR Sugam
• Major Difference Between Sahaj, Sugam and Quarterly Return
• GSTR Sugam Form & General Instructions of Filing the Form

What is GST Sugam?

GSTR Sugam can be opt by the small taxpayer whose turnover is up to Rs. 5 Crores and who is involved in B2B (Business to Business – supplies to GST registered persons) & B2C (Business to Consumer – supplies to consumers and unregistered persons under GST) business types. While, the tax has to be paid monthly via challan.

Eligibility for GST Sugam Return filing

Small taxpayers having a turnover of 5 crores or less dealing in B2B and B2C supplies can opt for GSTR Sugam in order to file their quarterly returns.   

When can you file GST Sugam?

A return shall be filed quarterly with the government but tax has to be paid monthly by the taxpayer.

Contents of GST Sugam

This new form is divided into two following parts:

• Annexure of supplies
• GSTR Sugam form.

Let’s discuss both in detail:-

Annexure of Supplies

1. The taxpayer has to provide basic details like GSTIN, trade name, legal name related to the taxpayer.
2. The annexure should be uploaded before filing the return.
3. Details of the invoices can be uploaded in real time.
4. This return can only be filed by taxpayers dealing with consumers, registered and unregistered persons, in the domestic market only
5. Businesses having supplies in the international market have to file annexure for quarterly returns.
6. This annexure can also be used in case where they need to report debit and credit notes in case of supplies made to registered persons (B2B).
7. HSN code is mandatory.

GSTR Sugam form

• Basic details of the taxpayer.
  • Summary of the supplies made and tax liability – Such data will be auto-populated from supplies annexure.
  • Details of the interest and late fee liabilities.
  • Details of payment of taxes including GST, CGST, IGST.

• Points to remember in this are:
  1. This return can only be filed by taxpayers dealing with consumers, registered and unregistered persons, in the domestic market only.
  2. Payment can be made through cash or credit as per rules.
  3. Adjustment in ITC will be reported in table 4.

Major Differences between Sahaj, Sugam and Quarterly returns

Sahaj	Sugam	Quarterly returns
Only for taxpayers providing supplies to B2C in domestic market.	For taxpayers providing supplies to B2C and B2B in domestic market.	For all small taxpayers making exports, imports, B2C, B2B, SEZ.

General Instructions to fill GSTR Sugam Form

1. The taxpayer who has made supplies to consumers and unregistered (B2C) and to registered persons only can file this return.
2. If input tax credit is availed during the first two months of the quarter will be adjusted from the claim and if the balance becomes negative then it will be added to the liability of the same quarter.
3. If the tax is paid within the first two months of the quarter then it will be adjusted against the total liability of the quarter.
4. Payment can be made in cash or credit as per rules.
5. In some cases, wherever the value is reported in terms of debit or credit notes, negative numbers or values should be reported as it is.
6. Reversal of the credit under the rules 37, 39, 42 & 43 will be reported as the net of reclaimed input tax credit, if any.
7. Any adjustment in input tax credit, due to transition from composition or otherwise will be reported in table 4 for accounting in to ITC.

Please click here to access GSTR Sugam Form^[2]

Conclusion

GSTR Sugam is a new tax return mechanism for small taxpayers having a turnover of Rs. 5 crore and less. This is a simplified tax filing mechanism which would require less information of the taxpayer. Taxpayer engaged in both (B2B) business to business and (B2C) business to consumer supplies in India will only be able to opt for the GSTR Sugam to file their quarterly return.

GST Sugam consists of two parts, which are Annexure of Supplies and GST Sugam form. The taxpayer will be able to avail input tax credit based on the invoice uploaded by the supplier uploaded using the online facility to upload invoices, and the same facility will be used to view the invoices by the supplier on daily basis. A return can be filed quarterly, but the tax has to be paid monthly by the taxpayer. The major differences between Sahaj, Sugam and Quarterly return are the type of services they provide, by the small taxpayers.