What is GST Sugam Return or GST RET-3 and How to File it?

Last Update Date : May 07, 2019
Estimated Read Time: 4 min

GST Sugam Return

In the 27th GST Council Meeting, the government introduced two new returns called GST Sahaj return and GST Sugam return to ease GST compliance for small taxpayers. They will be part of the simplified filing system which will be implemented in the FY 2019-20. Read this comprehensive guide by H&R Block to know more about GSTR Sugam.

[Know More: GSTR Sahaj]

What is GST Sugam Return?

Sugam return, also known as GST RET-3 is a simplified return for small taxpayers making both B2B as well as B2C supplies. It was initially announced that filing of this form would begin in April of FY 2019-20. But, the government has deferred it until further notice.

Who Can File GSTR Sugam?

GST RET-3 is meant for small taxpayers. You can file Sugam return if you satisfy the following conditions:

  • Your turnover doesn’t exceed Rs 5 Crore in the last FY.
  • You are involved in making both B2B as well as B2C supplies.

When Shall You File GST Sugam?

GST RET-3 return will have to be filed quarterly. However, GST must be paid on a monthly basis by the filers.

Contents of GSTR Sugam

Broadly, you can divide this form into two parts:

  • An annexure
  • The return

Annexure of Supplies to Return (GSTR-Sugam)

Part 1: Basic Details

This is the first part of annexure. This section will be auto-populated. It will display your basic details like GSTIN, legal name, trade name, etc.

Part 2: Details of Outward Supplies

Here, you will be required to provide details of supplies made to registered persons, consumers and un-registered persons (supplies attracting reverse charge) in terms of taxable value of inward and outward supplies and types of GST and cess paid.

Form GSTR Sugam

GSTR Sugam can be broken down into five parts:

Part 1: Basic Details

This section is auto-populated and contains the same basic details as reflected in the above-mentioned annexure.

Part 2: Summary of Supplies Made and Tax Liability

This section is also auto-populated based on your inputs in the “Annexure of Supplies”.

Part 3: Summary of Inward Supplies for Claiming ITC

This section is also auto-populated and displays the following information:

  • Details of ITC on inward supplies
    • Supplies attracting reverse charge
    • Supplies other than those attracting reverse charge
    • Supplies rejected by the recipient
  • Debit notes received from suppliers
  • Credit notes issued to customers

Part 4: Interest and Late Fee

In this part of the form, you must enter the details of any interest or late return filing fee that you need to pay for the concerned period. The new filing system will automatically calculate and report any applicable interest and late filing fee. However, if you are liable to pay any other interest, you must report it manually. Tax paid during the first two months of the quarter will be adjusted against the total liability of the quarter.

Part 6: Payment of Tax

You must provide the details of all the types of GST payments and cess payments made for the concerned period in this part of the form.

Part 7: Verification

This is the last section of the form where you shall verify that you have provided the correct information in the form by signing below the given declaration statement.

Input Tax Credit Rules for GST Sugam

  • Input tax credit availed earlier during the first two months of the quarter will be adjusted from the claim. If the balance of claim turns out to be negative, then it will be added to the liability for the same quarter.
  • Reversal of credit under rule 37, 39, 42 & 43 must be reported as net of reclaimed ITC if any. Ineligible credit shall also be reported under reversal.
  • Adjustment in ITC, if any due to transition from the composition scheme or otherwise must be reported in table 4.

New System of Uploading Invoices

The new return filing system will make the process of claiming ITC easy for you. It will allow the supplier to continuously upload the invoices which will auto-populate in his main return. These invoices will be continuously visible to the recipient. This will make the process of claiming ITC easier for the taxpayers.

When Must GST Sugam be Filed?

You will be required to file GST Sugam quarterly.

Filing GST Sugam Return Online

Currently, the facility to file GST Sahaj return online is not available. However, the government will soon launch the facility to file it online on the GST common portal, post which you can also get it filed by H&R Block. Stay tuned with us and we will notify you once the platform to file GST RET-3 is ready.

Difference Between Sahaj, Sugam and Quarterly Returns

Criteria Sahaj Return Sugam Return Quarterly Return
Applicability Small taxpayers making B2C supplies Small taxpayers making B2B as well as B2C supplies Small taxpayers making exports, imports and supplies to consumers, businesses and SEZs
Nature Pre-determined profile Pre-determined profile Not a pre-determined profile but will give the option to create one

By leveraging GSTR Sahaj, the new return filing system will simplify the compliance for small taxpayers. It is still unclear when the new system will be rolled out. The best way to stay updated about this any other GST compliance related matter is to stay tuned with H&R Block.

How Can H&R Block Help You?

After the implementation of GST, the tax compliance requirements have changed drastically. As a result, several businesses find it challenging to focus on their business while trying to be GST compliant. This is where we come into the picture. Our team of in-house GST experts can help you meet all the GST compliance requirements right from registration and filing of returns to handling notices.

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CA Ankita Mathur
CA Ankita Mathur
Ankita, a Big 4 alumna, is a tax expert at H&R Block (India) with vast experience in managing GST-related business services. An avid traveller, Ankita is a regular contributor to the CAclubindia and loves helping people understand about GST and helping companies be GST compliant.