Sugam GST Returns - Form GST RET-3

The new GST return framework has introduced a set of return forms specially designed for small taxpayers. Among the new returns available, Sugam return form is once such GST return, which aims to simplify the GST complexities.

In this blog, let us discuss and understand Sugam returns, return filing periodicity, tax payment, format and filing process.

What is Sugam GST returns?

Sugam is a new GST return for small taxpayers whose aggregate turnover in the financial year does not exceed 5 Crores and their outward supplies consist of B2B as well as B2C. Businesses opting Sugam GST returns will be allowed to make outward supplies to end consumers, unregistered business and business registered under GST.

Applicability of Sugam return

To opt Sugam return under GST, you need to satisfy the below conditions.

The aggregate turnover in the previous financial years is up to 5 crores
You are engaged in making B2B supplies (Unregistered business and end consumers) and B2B supplies (supplies to business registered under GST)

Periodicity of filing Sugam return

The periodicity of Sugam return filing is on a quarterly basis with a monthly payment of tax. For businesses opting Sugam GST return, the due date to file a quarterly return is 25^th of the subsequent month following the quarter-end.

The due date for filing Sugam GST returns is given below

Due Date to File Sugam GST Return
Filing Period	Due Data
April -June	25^th July
July – September	25^th October
October- December	25^th January
January-March	25^th April

Due date for payment of tax

Though the return filing periodicity is quarterly, businesses opting Sugam return are required to make the monthly payment.

The tax payment is on the self-assessed basis and the payment declaration challan known as Form GST PMT -08 should be used to remit the payment. The due date to remit the monthly payment is 20^th of the subsequent month.

Like Sahaj return, the self-assessed payment is required only for 1^st and 2^nd month of the and for 3^rd month, payment with all adjustments should be made along with the returns.

Let’s understand with an example.

For April to June quarter, the taxpayer needs to remit the tax of April by 20^th May and May’s tax by 20^th June. For June, you need to pay tax along with first 2 months adjustment (if any) with main Sugam returns.

Difference between Sahaj and Sugam GST returns

While both the returns are quarterly and applicable for small taxpayers, basis the supplies nature it supports, these 2 differs. Sahaj as a small taxpayer return supports only B2C supplies whereas Sugam supports B2C as well as B2B supplies.

In other words, Sahaj return is suitable for businesses who are engaged in making only B2C outward supplies. On the other hand, Sugam is suitable for a business who make both B2C as well as B2B supplies.

Types of supplies allowed under Sugam returns

The following table gives the list of supplies allowed and disallowed under Sugam GST returns.

Type of Outward Supplies	Allowed (Yes) / Disallowed (No)
B2B transactions	Yes
B2C transactions	Yes
Exports	No
SEZ units/developers	No
Deemed Exports	No
Outward Supply to e-Commerce Operators	No
Nil Rated, Exempted or Non - GST	Yes
Inward supplies attracting RCM	Yes
Import of goods/services	No
Import of Goods from SEZ	No

Sugam return filing process

The Sugam GST returns consists of one main return, to be filed on a quarterly basis supported by two main annexures. Form GST RET-3 is the return form to be used to file Sugam returns supported by the annexures.

The details of return forms and annexures to be used for filling Sugam return is given below.

Form	Description	Action
Form GST ANX- I	Form GST ANX-1 is an annexure of outward supplies and inward supplies attracting reverse charge.	You need to upload details of outward supplies along with purchases attracting reverse charge in FORM GST ANX - 1
Form GST ANX - II	It’s an annexure containing details of auto-drafted inward supplies.	Form GST ANX-II is an auto-populated annexure containing the details document uploaded by your supplier on a real-time basis. Here you can either accept, modify or reject the invoice uploaded by your counterpart (seller) for confirming the ITC.
Form RET-3	Form RET-3 is a quarterly return applicable for business opting Sugam returns (Up to 5 Crores)	Businesses need to file the monthly return by 25^th of the subsequent month following the quarter-end

The key point which businesses should take note is that the option to avail input tax credit on the missing invoices (invoices not uploaded by the supplier) is not available in Sugam returns. This implies that businesses will be allowed to avail the ITC to the extent of the invoices auto-populated in Form GST ANX-II.

However, the option to claim ITC on a provisional basis on the missing invoice is available for taxpayers opting monthly return and quarterly normal return using Form GST RET-1.

Format of Sugam returns – Form GST RET - 03

The Sugam form RET - 03 contains the details of supplies (both inward and outward) declared through Form GST ANX - 1 and GST ANX – 2. This is the main return form which auto-populates the information of supplies from the first two annexure forms. The supplier (taxpayer) needs to complete the remaining details and calculate their tax liability.

To summarize the Sugam return format (Form GST RET-3), it contains the summary level details of outward supplies, inward supplies and adjustments related to it. The Sugam return format consists of the following details: