An Analysis of New GST Return Scheme NORMAL, SAHAJ , SUGAM

An Analysis of New GST Return Scheme NORMAL, SAHAJ , SUGAM

An Analysis of New GST Return Scheme NORMAL, SAHAJ , SUGAM

May 27, 2019 Other by YASH

Recently Government has released a prototype of new & simplified returns on GST portal (https://demoofflinetool.gst.gov.in) , this move of Government indicates that very soon simplified GST return( NORMAL , SAHAJ , SUGAM ) will be a reality. So, now is the best time to take a quick overview of these simplified returns which will help you as a consultant / Accountant / Business to select the type of FORM which you will be required to file under GST for compliance.

For determining which return you will be filling completely depends on a series of test which you need to carry order in following way:-

Test Sequence 1: Check your last FY Aggregate turnover
Page Contents

Test Sequence 1: Check your last FY Aggregate turnover
Test Sequence 2: Type of Outward & Inward supply is done by your organisation
Some Key Highlights:-
Summary of some other Key Aspects which one should remember:-
On the basis of aggregate turnover of last FY Option of Monthly filing or Quarterly filing will be available. If your turnover is above Rs 5 Crore than there is no option other than to file NORMAL – Monthly return i.e., GST RET – 1 , but in case your aggregate normal turnover is not exceeding Rs 5 Crore than in that case you have multiple options to choose from such as option of Monthly filing or Quarterly Filing , in Quarterly filing again you have various options whether to go for NORMAL – Quarterly ( GST RET – 1) , SAHAJ ( GST RET – 2) , SUGAM ( GST RET – 3).Following table will help you to understand what are the options available to you on the basis of aggregate turnover.

Turnover Return ( New FORM) FORM NAME – Filing Frequency Determination of Turnover
Turnover Above Rs 5 Cr. FORM GST RET-1 NORMAL – Monthly 1. NEWLY REGISTERED DEALER: For newly registered taxpayer turnover will be decided on the basis of Self Declaration made by them on estimated turnover.
2. Other than above : For already registered Taxpayer it will be decided on the basis of Last year’s Turnover

Turnover Up to Rs 5 Cr. FORM GST RET-1 NORMAL – Monthly
FORM GST RET-1 NORMAL – Quarterly
FORM GST RET-2 SAHAJ – Quarterly
FORM GST RET-3 SUGAM – Quarterly
Aggregate Turnover above Rs 5 Cr. FORM GST RTE-1 is applicable. No need to go for next test.
Aggregate Turnover is not exceeding Rs 5 Cr. You have multiple options for further refining go to Test Sequence 2.
Test Sequence 2: Type of Outward & Inward supply is done by your organisation
B2B Purchase & B2C Supply: – If your organisation is making purchase locally from B2B market and simultaneously making B2C Outward Supply than you have to use SAHAJ
B2B Purchase & B2B + B2C Supply: – If your organisation is making purchase locally from B2B market and simultaneously making B2B + B2C Outward Supply than you have to use SUGAM
Any other combination of Purchase & Supply: – For rest all cases you have to use NORMAL form (GST RET – 1). However frequency of filing i.e., Monthly or Quarterly can be chose as per your convenience.
Following tabular presentation can provide you a better picture of different scenarios about applicability of various forms.

Sale / Purchase Particulars NORMAL SAHAJ SUGAM
SALE A. NIL Rated , Exempted , Non GST Supply is allowed Allowed Allowed Allowed
B. Other Supply
I. B2C Allowed Allowed Allowed
ii. B2B Allowed NA Allowed
iii.EXPORT Allowed NA NA
iv.SEZ Allowed NA NA
v. Deemed Export Allowed NA NA
vi.Supply through E-Com Operator Allowed NA NA
PURCHASE A. (i) RCM – Domestic Allowed Allowed Allowed
A. (ii) RCM – Import Allowed NA NA
B. B2B Allowed Allowed Allowed
C. Import of Goods ( SEZ Unit / SEZ Developers ) Allowed NA NA
Some Key Highlights:-
Irrespective of Form you have selected, you need to pay tax on monthly basis by using payment declaration form.
Under this new system you will be filling Single return only ( As Government Says ) but activity of filing this single return is divided into following three parts :-
GST ANX 1 : Annexure of Outward Supplies , which also includes Inward Supplies under RCM,
GST ANX 2 : Annexure of Inward Supplies ( Auto populated through your suppliers GST ANX 1)
FORM GST RET ( 1 / 2 /3 ) : Main return with summary of Liability and ITC
In current system of GSTR 1 & 3B taxpayer cannot enter negative figures, but this has been fixed in new system.
Option of filling NIL returns through SMS will be there ( Further process note expected)
Filling NIL return through GST portal will take you directly to Signature tab, so irrelevant activity will not be required.
All supplies specified in Schedule III shall be reported under ‘No supply’ in the main return. It will include high sea sale and bonded warehouse sale also.
HSN code for services shall be reported at six digit level or more irrespective of the turnover during the preceding financial year : ( People from service industry must start preparing masters accordingly )
Outward Supplies liable to reverse charge will be reported only by recipient and not by supplier.
Invoices of any preceding period not uploaded earlier can also be uploaded during the current month. The liability on such invoices will be paid during the current month but these invoices will be clubbed with the respective tax period(s) after filing of return of the current month.
Summary of some other Key Aspects which one should remember:-
Particulars NORMAL SAHAJ SUGAM
Type of Returns available Type of returns available :-
Option 1 : Monthly
Option 2 : Quarterly Only QUARTERLY return option is available. Only QUARTERLY return option is available.
Switching from One type of return to another NORMAL (Monthly) can switch over to:
Option 1: SAHAJ or
Option 2: Quarterly (Normal) return
Frequency Allowed: ONLY once in a financial year at the beginning of any quarter. SAHAJ can switch over to:
Option 1: SUGAM or
Option 2: Quarterly (Normal) return
Frequency Allowed: more than once in a financial year at the beginning of any quarter. SUGAM can switch over to:
Option 1: Quarterly (Normal) return
Frequency Allowed: more than once in a financial year at the beginning of any quarter.
Type of Outward Supply which can be disclosed in return All type of Outward Supplies can be disclosed in this return. Only Outward supply under B2C (Domestic) Category can be disclosed. Both B2C (Domestic) & B2B (Domestic) Outward Supplies can be disclosed.
Supply through online portal (Like Amazon, Flipkart etc.) Allowed Not Allowed Not Allowed
Whether ITC related to Invoices which are not uploaded by supplier (Missing Invoice) will be allowed or not ITC Allowed , on self-declaration basis ITC Not Allowed ITC Not Allowed
Tags: goods and services tax, GST, GST Return

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