The Central Board of Indirect Taxes and Customs which is the apex authority of Indirect taxation in India has recently announced new forms namely GST Return (Sahaj), GST Return (Sugam) and GST Return (Normal) for monthly/quarterly filing of GST returns by businesses having an annual turnover of up to Rs. 5 crore. These forms (uploaded in pdf format on the GST portal) will be available as a pilot project for use by such organisations and firms from 1st April, 2019. However, the current GST return Filing Forms such as GSTR 1 (description of total outward supplies), GSTR 2A (purchase report), GSTR 3B (summary of Input-output and payment of net tax liability) will be in existence along with the new forms.

The new forms would be mandated from 1st July, 2019 according to the decisions of GST Council.

What was the Need of Introducing New GSTR Forms??

The new GSTR forms are introduced in order to reduce the hassles of the small businesses (having annual turnover of up to Rs. 5 crore) from filing separate returns such as GSTR 1 (sale return) and GSTR 3B (summary of input-output and payment of net tax liability) and reconciliation of purchases from GSTR 2A (auto populated).

After the introduction of three new forms GSTR Sahaj, GSTR Sugam and GSTR Normal, registered individuals/businesses will no longer need to file GSTR 1 and GSTR 3B separately.

The taxpayers up to an annual turnover of Rs. 5 crores would have an option to file any of the three forms from the newly introduced Sahaj, Sugam and Normal GSTR Forms. The various annexures such as Form GST ANX 1 for outward supplies, imports and inward supplies attracting reverse charge and Form GST ANX 2 for inward supplies are attached with the Newly Introduced GSTR Forms.

Who should opt for which GSTR Form??

GSTR Normal Return (FORM GST RET – 1) – Taxpayers who must declare all types of outward supplies, inward supplies and take credit on all invoices (including missing invoices). These forms can be used by the taxpayers for monthly as well as quarterly GST return filing.

GSTR Sahaj Return (FORM GST RET – 2) – Taxpayers who have incurred supply only under B2C category and inward supplies attracting reverse charge mechanism. Such taxpayers cannot make supplies through e-commerce operators on which tax is required to be collected under section 52. Such tax payers shall not take credit on missing invoices and shall not be allowed to make any other type of inward or outward supplies. However, such taxpayers may make Nil rated, exempted or Non-GST supplies which need not be declared in the said return.

GST Sugam Return (FORM GST RET – 3) – Taxpayers who have incurred outward supply both under B2C and B2B Category and inward supplies attracting reverse charge only. Such taxpayers cannot make supplies through e-commerce operators on which tax is required to be collected under section 52. Such taxpayers shall not take credit on missing invoices and shall not be allowed to make any other type of inward or outward supplies. However, such taxpayers may make Nil rated, exempted or Non-GST supplies which need not be declared in said return.

Points to be taken into consideration before choosing GSTR Form:

• Periodicity of filing return will be deemed to be monthly for all taxpayers unless quarterly filing of the return is opted for.

• For newly registered taxpayers, turnover will be considered as zero and hence they will have the option to file monthly, Sahaj, Sugam or Quarterly (Normal) return.

• 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.

• The periodicity of the return filing will remain unchanged during the next financial year unless changed before filing the first return of that year.

• The taxpayers opting to file quarterly return can choose to file any of the quarterly return namely – Sahaj, Sugam or Quarterly (Normal).

• Taxpayers filing return as Quarterly (Normal) can switch over to Sugam or Sahaj return and taxpayers filing return as Sugam can switch over to Sahaj return only once in a financial year at the beginning of any quarter.

• Taxpayers filing return as Sahaj can switch over to Sugam or Quarterly (Normal) return and taxpayers filing return as Sugam can switch over to Quarterly (Normal) return more than once in a financial year at the beginning of any quarter.