GST SAHAJ & SUGAM Return

In the 27th GST Council Meeting, the Government announced a simpler GST return filing regime for small taxpayers. Under the new regime, persons having GST registration and a turnover of less than Rs.5 crores would be provided with an option to file quarterly GST return instead of monthly GST return. The Government has recently unveiled the new return type – Regular, SAHAJ, and SUGAM which a taxpayer can file every quarter or every month.

Sahaj Return	B2C supply only Nil rated, exempted or Non-GST supply allowed Supply NOT ALLOWED through eCommerce operator Cannot take ITC on missing invoices	Quarterly or Monthly Filing Note: Eligible for filing a quarterly return if newly registered for GST or aggregate annual turnover was less than Rs.5 crores in the previous financial year
Sugam Return	B2B or B2C supply only Nil rated, exempted or Non-GST supply allowed Supply NOT ALLOWED through an eCommerce operator Cannot take ITC on missing invoices	Quarterly or Monthly Filing Note: Eligible for filing a quarterly return if newly registered for GST or aggregate annual turnover was less than Rs.5 crores in the previous financial year
Regular Return	Any type of supply Supply allowed through an eCommerce operator Can take ITC on missing invoices	Quarterly or Monthly Filing Note: Eligible for filing a quarterly return if newly registered for GST or aggregate annual turnover was less than Rs.5 crores in the previous financial year

Who can file GST SAHAJ return?

GST SAHAJ return can be filed by a person registered under GST having an annual turnover of less than Rs.5 crores. In case of new business, they will also be allowed to file GST SAHAJ return – as their turnover in the previous would be considered NIL.

In addition to the above condition, taxpayers opting to file quarterly return ‘Sahaj’ would be allowed to declare only supply under B2C category (For example: Restaurant or Kirana Store) and inward supplies attracting reverse charge only. The taxpayer would also not be allowed to make supplies through e-commerce operators or take an input tax credit on missing invoices.

Hence, SAHAJ form can be used by taxpayers who supply only to B2C customers and/or have nil rated, exempted or non-GST supplies which need not be declared in a SAHAJ return.

Filing GST SAHAJ Return

To start filing GST SAHAJ return, the taxpayer must first opt for the return type on the GST Portal. Normally, all taxpayers would be required to file monthly return – unless they explicitly opt for filing Quarterly GST Return like SAHAJ.

Once opted for a return type, a 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. Once the monthly or quarterly return type is selected, the periodicity of filing return will remain unchanged over the next financial year unless changed before filing the first return of that year.

Switching from SAHAJ Return

Any taxpayer filing Quarterly GST Return can switch over to filing GST SAHAJ or GST SUGAM return.

Any taxpayer filing GST SUGAM Return can switch over to SAHAJ Return only once in a financial year at the beginning of a quarter.

Any taxpayer filing GST SUGAM Return can switch over to GST Quarterly Return at the beginning of any quarter without any restrictions (Max: 4 Quarters in a Year).

Any taxpayer filing SAHAJ return can switch to SUGAM or Quarterly GST Return at the beginning of any quarter without any restrictions (Max: 4 Quarters in a Year).