The GST Council introduced two new simplified return forms in its 27th GST Council Meeting – Sahaj Return and Sugam Return. They will be part of the new simplified filing system which is expected to be implemented in the FY 2019-20.
Read this comprehensive guide by H&R Block to know more about GSTR Sahaj.
Sahaj return, also known as GST RET-2, is a simplified one-page summary return. It was initially announced that the filing of this form would begin in April of the FY 2019-20. But, the government has deferred it until further notice.
GST RET-2 is meant for small taxpayers. Hence, you can file Sahaj return if you satisfy the following conditions:
GST RET-2 shall be filed quarterly. However, GST shall be paid on a monthly basis by the filers.
GSTR Sahaj can be broken down into 6 parts:
This is the first part of the form. The information under this section will be auto-populated. Your basic details like GSTIN, legal name, trade name, etc. will be displayed here.
Here, you will be required to provide the details of outward supplies made to consumers and unregistered persons (supplies attracting reverse charge) in terms of the taxable value of supplies and types of GST and cess paid.
Just like the first section, this section will also get auto-populated. The form will show information related to ITC on supplies which attract a reverse charge. The information on debit notes issued and credit notes received by you will auto-populate here.
Here, you must provide HSN-wise summary of supplies declared earlier. You must report HSN code at least up to the 4-digit level.
In this section, you must provide 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 the applicable interest and late filing fee, while you must calculate and report any other applicable interest yourself.
You must provide the details of all the types of GST and cess for the concerned period in this part of the form.
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.
This form is an annexure which you need to file as a part of FORM GST RET-2 (Sahaj). The form contains the following details:
Before you proceed to file FORM GST ANX-1, you have to answer a questionnaire which is divided in two parts:
You have to give answers to questions related to retaining the option given in the previous tax period.
This part contains the detailed questionnaire related to your supplies activities.
After answering the questions, you will file FORM GST ANX-1. The parts of the form are described below:
In the first part of the form, the following details will be displayed:
Based on the GSTIN, ARN (Application reference number) and the ARN date will be automatically generated.
These details will be reported under different tables mentioned below:
Supplies should be mentioned as per the tax rates and also the net of debit/ credit notes. You need not mention the HSN code here.
Supplies on which a reverse charge is applicable are reported here along with the GSTIN details.
When you file GST RET-2 (Sahaj) you need to file Form GST ANX-2 as a part of the return filing process.
The Form GST ANX-2 is an Annexure of Inward Supplies or purchases made. The form contains details of inward supplies that are auto-populated from Form GST ANX-1.
You, as a recipient of inward supplies of goods/service can choose to accept/ reject the documents uploaded by the supplier. You may also keep the decision pending after the 10th of the month succeeding the month in which such invoices have been uploaded.
However, if you are a quarterly return filer, you can communicate the rejection and any further action to be taken on such rejected invoices only when the return for the next quarter is filed.
If you choose to accept the documents, it means that invoices uploaded in Form GST ANX-1 are correct.
This is the first part of the annexure. It displays your general details like GSTIN, legal name, trade name (if any), ARN (Application Reference Number) and the date of filing.
This part includes details of supplies received from registered persons (other than those attracting reverse charge). It is auto-populated from Table 3B of FORM GST ANX-1 of your suppliers.
This contains the total amount of Input Tax Credit involved on the credit on all documents which have been rejected/ accepted/ have been kept pending. This includes the net of debit/ credit notes.
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.
You will be required to file GST Sahaj quarterly.
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-2 is ready.
|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.
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.