What is Sugam Return?
The GST Council has attempted to further simplify the process of filing returns, by bringing a new return filing sytem. Sugam return is a simplified quarterly return for small taxpayers who deal with B2C and B2B supplies. It will be implemented from October 2019.
Who should file Sugam return?
Sugam return must be mandatorily filed by small taxpayers who have a turnover of Rs. 5 crores maximum and deal with both B2C and B2B supplies.
How to file Sugam Return?
Sugam return form consists of 9 parts in total where taxpayers can enter information like the their general details, summary of taxable outward and inward supplies that attract reverse charge and debit or credit notes, summary of inward supplies to claim ITC, amount of TDS and TCS received, information on interest and late fee, payments of tax, and any refunds claimed. The Sugam return form cannot be filed on its own; it must be filed along with 5 other forms namely, GST ANX-1, GST ANX-2, GST ANX-1A, GST RET-2A, and GST PMT-08. In this guide you will information on the following topics:
Form GST ANX-1
GST ANX-1 is an annexure for reporting details of outward and inward supplies that are applicable for reverse-charge. The information entered in this form will be used to auto-populate some of the fields in the next form, ANX-2. Taxpayers are required to upload this form on a monthly basis, before filing the actual Sugam return form. Let’s look at the form in detail:
Part 1 and 2: General details
The first two parts of this annexure are for your general details: GSTIN, full legal name, trade name, ARN (Application Reference Number), and the date of filing.
Part 3: Details of outward and inward supplies for which reverse charge applies
In this section, you are required to fill in your GSTIN or UIN, place of supply and relevant document details, HSN code, tax rates, taxable value, tax amounts, and details regarding your shipping bill or bill of export for the following:
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Supplies made to your consumers and other un-registered persons.
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Supplies made to registered persons, besides those for which reverse-charge applies.
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Inward supplies for which reverse-charge applies.
Form GST ANX-2
GST ANX-2 is an annexure for all inward supplies received from a registered person and details of the ITC received. Taxpayers are required to upload this form on a monthly basis, before filing the actual Sugam return form. Let’s look at the form in detail:
Part 1 and 2: General details
The first two parts of this annexure are for your general details: GSTIN, full legal name, trade name, ARN (Application Reference Number), and the date of filing.
Part 3: Inward supplies received from a registered person
This part of the form is for details of inward supplies that you have received from a registered person, besides those supplies for which reverse-charge applies. In this form, you are required to enter the GSTIN of your supplier, their trade name, place of supply, relevant document details, HSN code, tax rates, taxable value, tax amounts, and the status of the form.
Note: The F in the return status column stands for Return Filed and the NF stands for Return Not Filed. Similarly, in the action column, the A stands for Accepted, R stands for Rejected, and P stands for Pending.
Part 4: Summary of ITC
The last part of Form GST ANX-2 is where you are required to enter the value and amounts of ITC involved under integrated tax, CGST, SGST or UGST, and cess tax for the following:
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The total amount of credit availed from documents that have been rejected.
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The total amount of credit availed from documents that have been marked pending.
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The total amount of credit availed from documents that have been accepted.
Form GST RET-3
The GST RET-3 or Sugam return is a simplified quarterly return meant for small taxpayers having a turnover of up to Rs. 5 crores and dealing with both B2C and B2B supplies. Here is a detailed explanation of the form:
Part 1 and 2: General details
The first two parts of the Sugam return form are for your general details: your GSTIN, full legal name, trade name, ARN (Application Reference Number), and the date of filing.
Part 3: Summary of outward supplies, inward supplies attracting reverse charge, debit or credit notes, and tax liability
A.Details of outward supplies
This part of the form is where you are required to fill in details of your outward supplies. Enter the value of the supply and the amount of integrated tax, CGST, SGST, and cess tax for:
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The taxable B2C supplies made to your consumers and other unregistered persons.
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The taxable B2B supplies made to registered persons.
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The liabilities relating to the period before the current return filing system, and any other liabilities to be paid.
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The total of all the above quantities.
B. Details of inward supplies
In this section you are required to fill in details of your inward supplies. Enter the value of the supply and the amount of integrated tax, CGST, SGST, and cess tax for:
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The inward supplies for which reverse-charge is applicable. This is the net amount of debit and credit notes and advances paid, if any.
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The total of the above values. This will be the same as the values entered above.
C. Details of debit or credit notes issued, advances received or adjusted, and other reduction in liabilities
Here you are required to fill in details of your reductions in liability. Enter the value of the supply and the amount of integrated tax, CGST, SGST, and cess tax for:
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The debit notes that have been issued, besides those for which reverse-charge applies.
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The credit notes that have been issued, besides those for which reverse-charge applies.
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Any advances that you have received. This is the net value of any refund vouchers and any adjustments made due to incorrect reporting of advances earlier.
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Any adjusted advances.
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Any reduction in output tax liability because of the transition from composition levy to normal levy, or any other reduction in liability.
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The total of all the above values.
D. The total value and tax liability A, B, and C
Part 4: Summary of inward supplies for claiming input tax credit (ITC)
A. Details of ITC based on auto-population from Form GST ANX-1, action taken in Form GST ANX-2 and other claims
This part of the form is where you are required to fill in details of your inward supplies. Enter the value of the supply and the amount of ITC for integrated tax, CGST, SGST, and cess tax for:
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The credit acquired on all documents that have been rejected in Form GST ANX-2.
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The credit on all documents that have been kept pending in Form GST ANX-2.
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The credit on all documents that have been accepted, included deemed accepted, in Form GST ANX-2.
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Any eligible credit acquired after the 1st of July, 2017, that you have not availed.
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The inward supplies that you have made for which reverse-charge is applicable.
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The upward adjustments in ITC due to receipt of credit notes and other adjustments and reclaims.
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The total value of lines 3 to 6 above.
B. Details of reversals of credit
In this section, you are required to fill in details of your inward supplies. Enter the value of the supply and the amount of ITC for integrated tax, CGST, SGST, and cess tax for:
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The credit acquired on documents that were accepted in earlier returns but have been rejected in the current tax period.
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The supplies that have been labelled as “ineligible for credit”.
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The reversal of ITC as per GST rules.
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Any other reversals, including downward adjustments of ITC on account of the transition from the composition levy to the normal levy.
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The total of all the above quantities.
C. The total ITC available to you (A- B)
D. ITC declared during the first two months of the quarter
Here you are required to fill in details of your inward supplies. Enter the value of the supply and the amount of ITC for integrated tax, CGST, SGST, and cess tax for:
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The first month of the quarter.
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The second month of the quarter.
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The total of the above quantities.
E. The Net ITC available (C-D)
Part 5: Amount of TDS and TCS credit received in electronic cash ledger
In this part of the form, you are required to fill in the integrated tax, CGST, and SGST for:
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Tax deducted at source.
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Tax collected at source).
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The total of the above two values.
Part 6: Interest and late fee liability details
In this section, you are required to fill in the details of your interest and late fees for:
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Late filing of returns, which includes late reporting of invoices from previous tax periods.
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Reversal of ITC.
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Late reporting of reverse-charge supplies.
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Other interest liabilities.
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The total of the above quantities.
Part 7: Payment of tax
In this part of the form, you are required to enter your payable tax, paid tax, adjustment of negative liability incurred during the previous tax period, payments made through ITC, and payments made in cash for:
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Integrated tax
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CGST
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SGST
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Cess
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The total of the above quantities.
Part 8: Refund claimed from electronic cash ledger
Here, you are required to fill in the refund amounts that you have claimed from the electronic cash ledger. Enter the tax, interest, penalties, fees, other payments, and the total of all of these quantities for:
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Integrated tax
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CGST
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SGST
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Cess
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The total of the above quantities.
Part 9: Verification
Filling in and signing the final part of the form will verify and authenticate the return either through a digital signature certificate (DSC) or by using an Aadhar-based signature verification mechanism.
Form GST ANX-1A
Form GST ANX-1A is an amendment for details of both your outward and inward supplies that attract reverse charge. Here is a detailed explanation of the form:
Part 1 and 2: General details
The first two parts of this annexure are for your general details: GSTIN, full legal name, trade name, ARN (Application Reference Number), and the date of filing.
Part 3: Amendment to details of outward and inward supplies that attract reverse charge
In this section, you are required to enter any changes or amendments to details that were previously entered in Form GST ANX-1. Enter your details related to your original document, revised document, place of supply, HSN code, tax rates, taxable value, tax amounts, and details regarding your shipping bill or bill of export for the following:
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Amendment to supplies made to your consumers and other un-registered persons.
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Amendment to inward supplies for which reverse charge applies.
FORM GST RET-3A
Form GST RET-3A is an amendment to the quarterly return GST RET-3, also called the Sugam return. Here is a detailed explanation of each section of the form:
Part 1 and 2: General details
The first two parts of this annexure are for your general details: GSTIN, full legal name, trade name, ARN (Application Reference Number), and the date of filing.
Part 3: Amendment to summary of outward and inward supplies for which reverse-charge is applicable
In this part of the form, you are required to provide details regarding any amendments to your outward and inward supplies for which reverse charge applies. The value column alone will be auto-populated with entries made in the previous forms.
A. Details of amendment to outward supplies
Here you are required to enter the amounts of integrated and cess tax, CGST, and SGST/UGST for the following:
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The taxable supplies made to B2C consumers and unregistered persons.
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Any liabilities accumulated before the introduction of the current return filing system.
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The total of the above 2 quantities.
B. Details of amendment to inward supplies attracting reverse-charge
In this part, you are required to enter the amounts of integrated and cess tax, CGST, and SGST/UGST for the following:
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The inward supplies for which reverse-charge applies.
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The subtotal of the values mentioned above.
C. Details of amendment to adjustment of liability
Here, you are required to enter the amounts of integrated and cess tax, CGST, and SGST/UGST for the following:
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The amount of output tax liability reduced due to the transition from the composition scheme to the normal scheme, or any other notable reduction in liability.
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The subtotal of the above values.
D. Total value and tax liability (A+B+C)
Here you are required to enter the total value of all of the above quantities (the sum of points A, B, and C).
Part 4: Amendment to summary of inward supplies for claiming ITC
A. Details of amendment to ITC based on auto-population from Form GST ANX-1A
In this section, you are required to enter the ITC values relevant to the integrated tax, CGST, SGST/UGST, and cess tax for the following:
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The inward supplies made for which reverse-charge applies.
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The upward adjustments in ITC due to receipt of credit notes and any other adjustments and reclaims.
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The total of the above 2 quantities.
B. Details of amendment to reversals of credit
Here, you are required to enter the ITC values relevant to the integrated tax, CGST, SGST/UGST, and cess tax for the following:
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Those supplies that are not eligible for credit.
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The reversal of ITC as per Rules 37, 39, 42, & 43.
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The total of the above 2 quantities.
C. Net ITC available (A-B)
Here you are required to enter the net ITC that is available to you. This can be calculated as the difference between the values entered in A and B.
Part 5: Interest and late fee details
This section is for your interest and late fee details. Here, you are required to enter the amount of interest for your integrated tax, CGST, SGST, and cess tax, along with the relevant amount of late fees under CGST and SGST for the following:
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The fee for making any amendment above the limit prescribed in the rules. This value will be computed by the system.
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The amount of interest on account of upward revision of tax liability, if any. This value will also be computed by the system.
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The amount of interest due to a reversal of ITC. This value must be computed by you.
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Any other interest liability. This liability must be specified and calculated by you.
Part 6: Payment of tax
This part of the form is for details related to your tax payments. You are required to enter the amounts of tax payable, tax paid, adjustment of negative tax liability accumulated during the previous tax period, tax paid through ITC, and tax paid in cash for the following:
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Integrated tax
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CGST
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SGST/UGST
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Cess tax
Part 7: Verification
The final part of this form is verification. Filling in and signing the final part of the form will verify and authenticate the return either through a digital signature certificate (DSC) or by using an Aadhar-based signature verification mechanism.
Form GST PMT-08
GST PMT-08 is the form that must be filed on a monthly basis, when making payments of self-assessed tax. Here is a detailed explanation of each section of the form:
Part1 and 2: General details
The first two parts of this annexure are for your general details: GSTIN, full legal name, trade name, ARN (Application Reference Number), and the date of filing.
Part 3: Summary of self-assessed liability and ITC availed
In this section, you are required to enter the relevant amount of integrated tax, CGST, SGST/UGST, and cess tax for the following:
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Any liability to pay taxes besides those under reverse-charge.
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Any liability to pay tax under reverse-charge.
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The amount of ITC that you have availed.
Part 4: Payment of tax
This part of the form is for details related to your tax payments. You are required to enter the amounts of tax payable, tax paid, adjustment of negative tax liability accumulated during the previous tax period, tax paid through ITC, and tax paid in cash for the following:
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Integrated tax
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CGST
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SGST/UGST
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Cess tax
Part 5: Verification
The final part of this form is verification. Filling in and signing the final part of the form will verify and authenticate the return either through a digital signature certificate (DSC) or by using an Aadhar-based signature verification mechanism.
