April 1, 2019

GST Returns | Normal | Sahaj | Sugam | All about New GST Returns

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With effect from 1st April 2019, following new revised GST return formats are implemented. Below are the new GST return name and formats.

1. Proposed New GST Returns

Monthly/Quarterly (NORMAL) return-Form GST RET-1
SAHAJ Return-Form GST RET-2
SUGAM Return-Form GST RET-3

2. Old GST Returns to be removed

GSTR – 1 i.e. detail of outward supplies
GSTR – 2A i.e Auto-populated detail of inwards supplies
GSTR – 3B i.e summary return containing summary of Outward supplies, details of inputs for the purpose of depositing GST tax liabilities on monthly basis.

Modus operandi of filing of revised return forms is similar to earlier one, i.e., first taxpayer needs to file details of outward supply in GST ANX-1 (GSTR-1 in earlier formats), then he is required to finalize purchase based on auto-populated data in GST ANX-2 (GSTR-2 & GSTR-2A in earlier format) and at last taxpayer needs to file final return in form GST RET 1/GST RET 2/ GST RET 3 (GSTR-3 in earlier format) on GST portal.

Please note that changes are proposed for mentioned forms only, however, no changes are suggested for GSTR-4 to GSTR-11. Therefore, these returns will continue to file as earlier.

3. Background of New GST Return

To improvise and simplify, GST council approved concept of new simplified format of GST return in its 28^th GST council meeting held on 21^st July, 2018.

Revised formats are proposed to implement with effect from 1^st April, 2019 on trial basis and if it operates well then such formats will become mandatory with effect from 1^st July, 2019, as decided in 31^st GST Council meeting.

Goods and service tax (“GST”) was implemented from 1^st July, 2017 with concept of 3 GST returns as GSTR-1 (Return of Outward Supply), GSTR-2 (Return of Inward supply) & GSTR -3 (Final Return).

However, due to lack of technical support only GSTR-1 has made effective till date alongwith a summary return GSTR-3B.

4. Analysis / comparison of New GST Returns

Below table consists gist of major points and other information of revised GST forms.
Such information will help you to determine which form is applicable on taxpayer, what are the details need to report while filing new gst return, due date of return etc.

Basis	SAHAJ Return-Form GST RET 2	SUGAM Return-Form GST RET3	Normal Return(Quarterly) – Form GST RET 1	Normal Return(Monthly) – Form GST RET – 1
Periodicity of return where turnover is less than or equal to 5 crore	Monthly (Also quarterly option given)	Monthly (Also quarterly option given)	Monthly (Also quarterly option given)	Monthly
Periodicity of return where turnover is more than 5 crore	Monthly	Monthly	Monthly	Monthly
Input Tax Credit (“ITC”) on missing invoice.	Not allowed	Not Allowed	Allowed	Allowed.
Payment of Tax	Monthly	Monthly	Monthly	Monthly

5. Type of suppies allowed in GST return

Basis	SAHAJ Return-Form GST RET 2	SUGAM Return-Form GST RET 3	Normal Return(Quarterly) – Form GST RET 1	Normal Return(Monthly) – Form GST RET – 1
B2C Supplies	Allowed	Allowed	Allowed	Allowed
B2B Supplies	Not Allowed	Allowed	Allowed	Allowed
Inwards Supplies attracting Reverse charge	Allowed	Allowed	Allowed	Allowed
Zero Rated supplies i.e. Export turnover	Not Allowed	Not Allowed	Allowed	Allowed
Supplies through E commerce operator	Not Allowed	Not Allowed	Allowed	Allowed
Nil rated and exempted supplies	Not Allowed	Not Allowed	Allowed	Allowed

Note 1: In case of Sahaj and Sugam GST return Supplier may make 1. Non-GST supplies, 2. Exempted or 3. Nil rated supplies however such supplies can not be reported in Sahaj GST return and Sugam GST Return

Note 2: Taxpayer opting to file “Sahaj” or “Sugam” can’t make supply through e-commerce operator on which tax is required to collect under section 52.

6. Applicable forms for GST Return

Basis	SAHAJ Return-Form GST RET 2	SUGAM Return-Form GST RET 3	Normal Return(Quarterly) – Form GST RET 1	Normal Return(Monthly) – Form GST RET – 1
Annexure for outward and inward supplies attracting reverse charge	Form GST ANX-1	Form GST ANX-1	Form GST ANX-1	Form GST ANX-1
Annexure for inward supply (Auto-populate)	Form GST ANX-2	Form GST ANX-2	Form GST ANX-2	Form GST ANX-2
Final Return Form	Form GST RET-2	Form GST RET-3	Form GST RET- 1	Form GST RET-1
Amendment to details of outward supplies and inward supplies attracting reverse charge	FORM GST ANX-1A	FORM GST ANX-1A	FORM GST ANX-1A	FORM GST ANX-1A
Amendment to final return	FORM GST RET – 2A	FORM GST RET – 3A	FORM GST RET – 1A	FORM GST RET – 1A
Non-GST Supplies	Form PMT 08	Form PMT 08	Form PMT 08	Form PMT 08

7. Which GST return format to be selected

Periodicity of filing of return shall be monthly for all taxpayers by default. However, he may select an option to file quarterly return based on criteria provided.
It is not mandatory to file return form as per applicability. Any person entitled to opt for Sahaj may opt to file normal return also on monthly or quarterly basis.

8. Other important points relevant for new GST return

Aggregate turnover of newly registered taxable person shall be considered as zero, accordingly, he can opt to file any form, as applicable to him.
Taxpayer can select periodicity of return filing (i.e. monthly or quarterly) only once at the time of filing first return of financial year and such periodicity shall be applicable for such financial year.
Please note that shared document doesn’t prescribe any due date for filing of GST return in form GST RET 1, GST RET 2 & GST RET 3.

9. Change in form during the year

Person opts to file return on quarterly basis can file return in any form namely Sahaj, Sugam or Normal return. However, option to switch form during the year is available in following manner:

Opted Form	Switch to	Frequency
Sahaj i.e. GST Ret 2	1. Sugam i.e. GST Ret 3 2. Normal Return i.e. GST Ret 1	More than once in a Financial Year-at beginning of any quarter
Sugam i.e. GST ret 3	1. Normal Return i.e. GST ret 1	More than once in a Financial Year-at beginning of any quarter
Sugam i.e. GST ret 3	Sahaj i.e. GST Ret 2	Only Once in a Financial Year-At beginning of any quarter
Normal Return i.e. GST Ret 1	1. Sahaj i.e GST Ret 2 2. Sagam i.e. GST Ret 3	Only Once in a financial year-At beginning of any quarter

10. Amendment in GST New Returns

Amendment return can be filed for a tax period, i.e., month or quarter.
Amendment in content of GST ANX-1 will be made through GST ANX-1A and GST RET-1/ GST RET- 2/ GST RET-3 will be made through GST RET-1A/GST RET-2A/GST RET-3A.
Amendment in ITC (upward/downward adjustment) will be made through main return (GST ANX-2) and not to be made through amendment return.
Amendment in GST ANX-1A can be filed before the due date of furnishing return for the month of September following end of the F.Y. or the actual date of furnishing relevant annual return, whichever is earlier.
Process of filing of amendment return is similar to original return.
Amendment can be made as many times as provided in CGST Act.
If any liability arises due to filing of amendment return then payment is required to be made for such liability. Liability can be made through utilisation of available ITC balance.
If liability becomes negative then no refund will be granted. However, such excess amount can be used for payment of GST liability of next tax period.

11. Payment of GST Liabilities

Taxpayer will make payment of self assessment tax through form GST PMT-08.
Taxpayers are required to make payment on monthly basis. If a taxpayer opts to file return on quarterly basis, he is still required to make payment on monthly basis.
In case of quarterly filing of return, credit of tax paid during first 2 months of the quarter will be available at the time of filing of quarterly return.
Due date of GST payment is 20th of the month following the month to which liability pertains.
GST liability can be settled out of balance in electronic credit ledger or electronic cash ledger.
Excess availement of ITC or short payment of GST or delay in payment of GST will be subject to interest u/s 50 of central goods and service tax act, 2017

12. Download New GST Return format

Monthly/Quarterly (NORMAL) return-Form GST RET-1	Click here
SAHAJ Return-Form GST RET-2	Click here
SUGAM Return-Form GST RET-3	Click here

Want to know more about Implementation of New GST return, read our post Transition Plan | New GST Return Implementation

DISCLAIMER: The views expressed are strictly of the author and VJM & Associates LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

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