Ultimate Guide on GST Sugam Return
GST Sugam is a simplified version of the return form, as introduced by the GST council from October 2019. A taxpayer with Rs.5 crores turnover in the financial year will be able to file for this return. This form is available to the Indian small taxpayers only, as engaged in B2B and B2C supplies. According to the 28th GST council conference, members approved this GST return file for smaller taxpayers with a turnover of Rs.5 crores maximum. This tax needs to be paid on a monthly basis through challan.
Contents of GSTR Sugam:
GST Sugam comprises of mainly 2 annexures to return and return itself. It is mandatory to take a quick note at the Annexures first.
· It is mandatory to have a minimum of four-digit level reporting of the current HSN code.
· The annexure can further be used for reporting credit and debit notes, associated with supplies made to registered B2B persons.
· Businessmen with transactions in the international market can file for the annexure as on quarterly returns.
· Supplies apart from the ones made to unregistered persons and consumers and registered B2B people in the domestic market, cannot be added through this annexure.
· You can upload the invoice details associated with outward supplies to B2B people on a real-time basis, during the quarter.
· It is mandatory to upload the annexure before GST Return Filing for any tax period.
Notes on the Main Return:
Any taxpayer, who supplied to unregistered people and consumer and to the registered person in the domestic market, can file for the main returns only.
· The input tax credits as procured earlier during the initial 2 months of the quarter will get adjusted from the said claim.
· In case, the claim’s balance turns out to be negative, it will then add to the liability for that same quarter.
· The tax, which has been paid during the initial 2 months of a quarter will then get adjusted against total liability of the said quarter.
· Payment can easily be made out of credit or cash, as per the given rules.
· The credit reversal under rule 39, 37, 42 and 43 will be reported as net of the ITC reclaimed, only if there is any.
· It is mandatory to report the ineligible credit under reversal.
Invoice system – more about it:
The small taxpayer’s recipients can easily avail input tax credit. It solely depends on the invoice, as uploaded by the supplier. So, the small taxpayers will be given proper online facility to upload and view invoices continuously and on a daily basis. The invoices, as uploaded on the 10th of the following month are then made available as the Input Tax Credit to the recipient in the relevant month. It is similar to that of the large taxpayer who will file the monthly returns.
The time to file GST SUGAM:
It is mandatory to file GST SUGAM on a quarterly basis. However, it is mandatory for the taxpayer to pay for the tax, on a monthly scale.
Differentiating between SAHAJ, SUGAM and Quarterly Return:
For the smaller taxpayers, it is really important to learn differences between SAHAJ, SUGAM and Quarterly Returns, before taking the final call.
· In the case of SAHAJ, the application is made to smaller taxpayers using only the B2C supplies. SAHAJ is one predetermined profile of quarterly return.
· On the other hand, SUGAM is applicable to the smaller taxpayers, making supplies to the consumers and other businesses under B2B and B2C modules. It is yet another predetermined profile like SAHAJ of quarterly return.
· Then you have Quarterly Returns, which are made applicable to some of the smaller taxpayers, working on imports, exports, and supplies to B2B, B2C, and SEZ, to name a few. It is not any predetermined profile, unlike SAHAJ and SUGAM. However, the taxpayer might have the option to just create a profile for filing through this same return.
Filing the GST SUGAM return:
To start with the GST SUGAM return, GST Registration will become simplified by the govt on aadhar card basis. Even right now there are no GST Registration Fees Charged by the Govt so with the GST SUGAM Return will be simplified for the same. Generally, the taxpayer needs to file monthly returns, unless they opt for filing the Quarterly GST return like SUGAM. Sometimes, a change in periodicity of return filing is allowed but just once during filing the first return. Once the quarterly or monthly return type has been selected, periodicity will then remain unchanged until the next financial year unless it has been changed before filing the first return of the year. Here you can see our guide about Rationalization of GST