Comparison between GST RETS 01, RET 02, RET 03. Which RET form Needs to be Opted Now for GST filing -Normal, Sahaj and Sugam

According to the latest decision, the proposed Goods and Service Tax (GST) Returns forms will be implemented from the next financial year- 2020- 21 onward.  The GST Registrants have three options to select now – Normal, Sahaj and Sugam. The overall structure of the newly designed returns is given below;

# Name Description
1. FORM GST ANX-1 Annexure of outward supplies and inward supplies attracting reverse charge
2. FORM GST ANX-2 Annexure of inward supplies
3. FORM GST RET-01/02/03 Monthly/Quarterly return
4. FORM GST ANX- 1A Amendment to FORM GST ANX-1
5. FORM GST RET-1A/2A/3A Amendment to FORM GST RET-01/02/03
6. FORM GST PMT-08 Payment of Self-assessed tax

There are multiple benefits for using the form GST RET-1.  The taxpayers who opt to file returns on monthly or quarterly (GST RET-1) basis would be eligible to take credit of missing invoices.  However, the credit of missing invoices will not be available in case taxpayers opt to file Sahaj (GST RET-2) or Sugam (GST RET-3) according to the draft version.

There are other features as well which need to be studied well before selecting the form. The summary of switching pattern of tax returns also needs to be studied well before selecting the form.  Here are the options for switching of forms.

    • From Quarterly (Normal) to Sugam or Sahaj – only once in a financial year at the beginning of any quarter
    • From Sugam to Sahaj- only once in a financial year at the beginning of any quarter
    • From Sahaj to Quarterly (Normal) or Sugam – more than once in a financial year at the beginning of any quarter
    • From Sugam to Quarterly (Normal) – more than once in a financial year at the beginning of any quarter

The comparison of three Return Forms is given below;


# Particulars Normal
1. Periodicity of Return Quarterly or monthly Quarterly Quarterly
2. Aggregate Turnover More than 5 Crore-mandatory, Up to 5 Crore -optional Up to 5 Crore-Optional Up to 5 Crore- Optional
3. Type of Outward Supply
-B2B Yes No Yes
-B2C Yes Yes Yes
-Exports Yes No No
-SEZ units/developers Yes No No
-Deemed Exports Yes No No
-Supply to E-Commerce Operators Yes No No
-Nil Rated, Exempted or Non-GST Yes Yes(even without declaration) Yes(even without declaration)
4. Type of Inward Supply
-RCM Yes Yes Yes
-Import of Services Yes No No
-Import of Goods Yes No No
-Import of Goods from SEZ Yes No No
5. The credit of Missing Invoices Available Yes No No
6. ISD Credits Received Yes No No
7. HSN Code (6 Digits) on the basis of Annual Aggregate Turnover > 5 crores, in relation to exports, imports and SEZ supplies, mandatory; <5 crore or equals to 5 crores then optional. Optional Optional
8. NIL Return by SMS Yes Yes Yes


Most of the features as of now point toward availing Normal return instead of other two for those who expect input tax credit in transactions. The new forms are expected to be operational in the next financial year.  There are multiple software tools to generate invoices.  Those who have Export/Import transactions have to compulsorily go for Normal return (GST RET-1) irrespective of other features in Sahaj (GST RET-2) and Sugam (GST RET-3).  The Invoice Tool as developed by Smart Admin helps to generate GST compliant invoice for those dealing Import/Export as well.  It is also designed for Service providers who work on unit basis.  At any time, summary of invoice can be generated and same can be uploaded to generate JSON file.  The Smart Admin invoice tool is comparatively lower priced but with higher features and it caters to the need of Exports as well.

SMART ADMIN is a cloud-based software for generating GST Compliant Invoice, Payroll management, Timesheet and Project Tracking – visit SMART ADMIN for FREE Trial and Registration.


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