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;
|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;
|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|
|-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|
|-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.
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