GST SUGAM

The Government is set to launch a simplified GST return filing regime shortly with the introduction of GST SAHAJ and GST SUGAM return types. Persons having GST registration and a turnover of less than Rs.5 crores would be provided with an option to file quarterly GST return under the new return type – SAHAJ and SUGAM. In this article, we look at the GST SUGAM Return in detail.

Sahaj Return	B2C supply only Nil rated, exempted or Non-GST supply allowed Supply NOT ALLOWED through eCommerce operator Cannot take ITC on missing invoices	Quarterly or Monthly Filing Note: Eligible for filing quarterly return if newly registered for GST or aggregate annual turnover was less than Rs.5 crores in the previous financial year
Sugam Return	B2B or B2C supply only Nil rated, exempted or Non-GST supply allowed Supply NOT ALLOWED through eCommerce operator Cannot take ITC on missing invoices	Quarterly or Monthly Filing Note: Eligible for filing quarterly return if newly registered for GST or aggregate annual turnover was less than Rs.5 crores in the previous financial year
Regular Return	Any type of supply Supply allowed through eCommerce operator Can take ITC on missing invoices	Quarterly or Monthly Filing Note: Eligible for filing quarterly return if newly registered for GST or aggregate annual turnover was less than Rs.5 crores in the previous financial year

Wh0 can file GST SUGAM return?

GST SUGAM return can be filed by a person registered under GST having an annual turnover of less than Rs.5 crores. In case of new business, they will also be allowed to file GST SUGAM return – as their turnover in the previous would be considered as NIL. In addition to the above condition, taxpayers opting to file quarterly return SUGAM would be allowed to declare only supply under B2B and B2C category and inward supplies attracting reverse charge only. The taxpayer would also not be allowed to make supplies through e-commerce operators or take input tax credit on missing invoices. Hence, SUGAM form can be used by taxpayers who supply to B2B or B2C customers and/or have Nil rated, exempted or Non-GST supplies. SUGAM Return would be ideal for most small businesses with a turnover of less than Rs.5 crores that make B2B or B2C supplies within the country.

Filing GST SAHAJ Return

To start filing GST SUGAM return, the taxpayer must first opt for the return type. Normally, all taxpayers would be required to file monthly return – unless they explicitly opt for filing Quarterly GST Return like SUGAM. Also, 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.

Switching from SUGAM Return

Any taxpayer filing Quarterly GST Return can switch over to filing GST SAHAJ or GST SUGAM return. Any taxpayer filing GST SUGAM Return can switch over to SAHAJ Return only once in a financial year at the beginning of a quarter. Any taxpayer filing GST SUGAM Return can switch over to GST Quarterly Return at the beginning of any quarter without any restrictions (Max: 4 Quarters in a Year). Any taxpayer filing SAHAJ return can switch to SUGAM or Quarterly GST Return at the beginning of any quarter without any restrictions (Max: 4 Quarters in a Year).

GST SUGAM Return

The format of GST SUGAM return is reproduced below for reference. Most of the information in this return will be auto-populated from the ANX-1 and ANX-2 return that would be filed by the taxpayer regularly. [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2019/05/GST-SUGAM-Return.pdf" title="GST SUGAM Return"]

Summary of outward supplies, inward supplies attracting reverse charge, debit / credit notes etc. and tax liability

Taxable supplies made to consumers and un-registered persons will be auto-populated from table 3A of FORM GST ANX-1. This will be net of debit / credit notes. Taxable supplies made to registered persons (other than those attracting reverse charge) will be auto-populated from table 3B of FORM GST ANX-1. It includes all supplies made to persons having GSTIN or UIN. Liabilities relating to the period prior to the introduction of current return filing system and any other liability (including excess tax collected from the recipient, if any) to be paid should be reported here by the taxpayer.

Details of inward supplies attracting reverse charge

Inward supplies attracting reverse charge will be auto-populated from table 3H of FORM GST ANX-1. The values will be net of debit/ credit notes and advances on which tax has already been paid at the time of payment, if any.

SUGAM - GST ANX-1

In the SUGAM return filed by the taxpayer every month or quarter as shown above - most line items are aut0-filled. Auto-filled values are denoted by <Auto> in the sample return above. The auto-filled information is prepared by the GST Portal based on the GST ANX-1 information filed by the taxpayer from time-to-time. GST ANX-1 must be filed by the taxpayer at any time before the due date. It can be filed continously as well on a daily basis - on the basis of which the GST SUGAM return for the quarter would be auto-prepared. Information to be provided in GST ANX-1 return for SUGAM are shown below:

GST ANX-1

SUGAM - GST ANX-2

Details of invoices uploaded by the supplier(s) [irrespective of the fact whether the supplier files his return on monthly or quarterly (Normal, Sahaj or Sugam) basis] will be auto-populated on a real-time basis in GST ANX-2 form. The invoices so populated can be accepted or reset / unlocked by the recipient upto the 10th of the month following the month in which such documents have been uploaded. Sample GST ANX-2 for SUGAM return is reproduced below for ready reference:

SUGAM ANX-2 Once an invoice is auto-populated on ANX-2, the taxpayer will have the option to reject, accept or keep pending the invoice. If accepted, the input tax credit will be availed. If rejected, the invoice will be sent back to the supplier for correction. The supplier can make correction from ANX-1 form itself. If an invoice is kept pending, the input tax credit in respect of pending invoices will not be accounted for in table 4A of the main return (FORM GST RET-3) of the recipient and the invoices would be rolled over to FORM GST ANX-2 of the next tax period. Further, pending invoices will not be available for amendment by the supplier until rejected by the recipient. In case a taxpayer files the SUGAM return in a quarter or month without taking any action on the invoices uploaded by the supplier, it will be deemed that all invoices uploaded by the supplier are accepted. Hence, care must be taken to match the input tax credit before filing GST return.