GST, the biggest tax reform in the country, will undergo another major revamp w.e.f. April 1, 2019. While the 27th GST Council Meeting approved Simplified Returns, the 28th GST Council Meet laid down the rules on Return Simplification. After this, return forms: GSTR 2 and GSTR 3 were suspended due to their complex structure and GSTR 1 and GSTR 3B were retained.
The transition to new simplified forms was divided in 3 phases, last being avilability of Simplified Returns on the portal, and few days back, the Simplified Returns were released on the GSTN portal. The pilot starts from April 1, 2019 which shall be made mandatory from July 1, 2019.
Simplified Return Forms
In an attempt to simplify Taxation for Small Taxpayers, the GST council decided upon implementation of new and simplified tax returns, namely,
These tax returns are being introduced to free the small taxpayers from the hassles of taxation, thereby helping them to focus on the growth of their business.
Who are small taxpayer in GST Regime?
Business owners with an annual turnover up to Rs.5 crores are considered as Small Taxpayers.
What is the periodicity of these return forms?
The periodicity of filing return will be deemed to be monthly for all taxpayers unless quarterly filing of the return is opted for.
Can a newly registered taxpayer opt in to file Sahaj or Sugam return forms?
For a newly registered taxpayer, turnover will be considered as zero and hence he/she will have the option to file monthly, Sahaj, Sugam or Quarterly (Normal) return.
Can I change the periodicity of my return filings?
Change in the periodicity of the return filing (from quarterly to monthly and vice versa) would be allowed only once at the time of filing the first return by a taxpayer. However, if a Taxpayer is filing his return as Sahaj, he can switch over to Sugam or Quarterly (Normal) return more than once in a financial year.
Points to be noted:
For a person opting for Sahaj/Sugam,
What are the advantages of the Simplified Return Forms?
It is being anticipated that these return forms shall greatly simplify the taxation system in India, reduce the tax burden from businesses and help eliminate tax evasion in the country. For further updates on the simplified tax return forms, keep an eye on the IRIS Blog.
Read the comparative analysis of the current and upcoming taxation scenarios here.
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