Sahaj and Sugam: Govt Proposed New GST Return Filing Form for Small Taxpayers


June 14, 2019


Income Tax Department comes forward with two new GST return filing Form called SAHAJ and SUGAM. The mission of releasing both forms is to make the filing income tax return easier and hassle-free for the income taxpayers. IT Department claim that both GST return forms are simple and taxpayer friendly.

In addition, taxpayers with no input tax credit, no output tax liability and no purchases to consider in any respective quarter of the year will have to furnish ‘Nil return‘ in the quarter.

CBIC mentioned while revealing the draft return forms, “In month one and two of the quarter, such taxpayer shall report NIL transaction by sending an SMS. Facility for filing a quarterly return shall also be available by an SMS.” Small taxpayers are the businesses whose turnover is up to Rs. 5 crore considering FY2017 and able to furnish return form on a quarterly basis along with monthly tax payment on self-declaration form.

The businesses supplying to consumers or B2C supply will require to furnish ‘Sahaj‘return form. It consists of information of inward and outward supplies along with applicable reverse charge and inward supplies information in order to claim for input tax credit (ITC). Further, the businesses supplying to consumers will have to exhibit late fee liability information, HSN wise summary of supplies, payment of tax, verification, and interest.

Read Also: Cabinet approves GST Law Amendments to be placed in Parliament

Moreover, the businesses supplying to consumers and businesses have to furnish the ‘Sugam’ return form. It consists of information of inward and outward supplies along with information about tax payment and interest and inward supplies in order to claim for input tax credit (ITC).

Download PDF: Official Draft GST Form Format

The businesses supplying to B2C and B2B are required to furnish annexure to relevant return form providing information of consumers, outward supplies to the registered taxpayer, the un-registered taxpayer, and inwards supply for a reverse charge. It is also necessary to furnish HSN wise details of supplies made.

The forms replacing the existing GSTR-1 and GSTR-3B are mandatory from July 1, 2019. Rajat Mohan, AMRG & Associates Partner mentioned, “new procedures are expected to disrupt the compliance scenario in GST once again for sure, but this inclusive governance model of inviting public comments would act as a swift shock absorber”.

Supporting the move, Abhishek Jain, tax partner at EY said that structure of the newly proposed return forms are now open for public comments so that various concerns can be addressed before the implementation of new form formats. He further added, “The current Government’s leitmotif of being open to public views/ comments has always been welcomed by businesses and has in the recent times also addressed various apprehensions of the industry.” the return forms were approved by the regime in GST Council meeting on July 21.


Leave a Reply

Your email address will not be published. Required fields are marked *