On May 4, 2018, in the meeting held, the GST Council did approve the basic principles of GST return design. And, in the same meeting, the council ask the law committee to finalize the return formats and changes in the law. On Saturday, July 21, 2018, approved formats and business process were in line with the basic principles. The only major change is for the small taxpayers. What is it? Let’s find out what is the Simplified GST Return Filing Process – Sahaj and Sugam.
Simplified GST Return Filing Process -Sahaj and Sugam:
The major change in the Simplified GST Return Filing Process is that you will get the option to file quarterly return. Only, if your turnover is below INR 5.00 Crores. This quarterly return is the same as the main return. The only difference is that you will have to make with a monthly payment of tax. And, you are eligible to avail this option if you are a small trader and making only B2C supply or making B2B + B2C supply. This simplified GST Return Filing Process is for such small taxpayers. And, this simplified GST Return Filing Process is known as Sahaj and Sugam.
All taxpayers other than small taxpayers and a few exceptions like ISD etc. will file a monthly return. The GST return filing is simple. It has two main tables. One for reporting the outward supplies; and, the other one for availing input tax credit on the basis of invoices the suppliers’ upload.
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UPLOAD – LOCK – PAY Process:
Sellers can upload the invoices continuously. And, the buyers can continuously view and lock those invoices to avail input tax credit. Through this process, a large part of the return will be filled automatically on the basis of the invoices those the buyers and the sellers upload. In simple words, the process would be “UPLOAD – LOCK – PAY” for most of the taxpayers.
Taxpayers can create their profile on the basis of the nature of the supplies made and received. Hence, the taxpayer will have to fill in the fields of information shown on the basis of their profile.
NIL Return Filers:
Relief for Truckers:
Since the truckers make small errors while filling e-way bills, therefore, the Council wants to ease out their concerns. Hence, announced a standard operating procedure for imposing less severe penalties such small errors. The GST Council is on its way to link the RFID on vehicles with GST Network.
Relief For Companies:
Now, Companies can also have multiple registrations within a state. And, E-commerce entities will have to take registration for the taxable goods which they sell on their platform.
Increasing Threshold for Tax Exemption under GST:
Assam, Meghalaya, Arunachal Pradesh, Himachal Pradesh, Sikkim and Uttarakhand will get an increment in the threshold for exemption under GST. Now the threshold will be INR 2.00 Million annual turnover which is at present INR 1.00 Million. The GST Council will also introduce an enabling clause in GST laws, according to which any state will be able to increase the threshold limit to up to INR 2.00 Million.
Cancellation of GST Registration:
If you have applied for the cancellation of GST registration, you can stop GST Return Filing since than only.
The GST Council have addressed several compliance issues. Hence, the Simplified GST Return Filing Process under the indirect taxation system will become much easier.
As per the government, 93% of the taxpayers have a turnover of less than INR 5.00 Crores. These taxpayers would get extensive benefits due to the simplification of the GST Return Filing Process. And, this will improve their ease of doing business. Not only small taxpayers, but the large taxpayers would find the design of the new return quite easy and user-friendly.