As after implementation of GST on 1st July 2017 there have been complications for the taxpayer in filling return the late fees implied and various changes in day to day notification issued by goverment as due to this the small taxpayer who are around 93% whose turnover are less than Rs. 5 Crore face major issue for compliance and the cost for compliance. For relief for such small taxpayer the goverment has simplified the Compliance for Returns in GST by implementing the New returns from 01.04.2019 on voluntary basis and from 01.07.2019 it will be mandatory.
- As there have been announced in 28th GST COUNCIL held on 21st july 2018 in New Delhi. The Council also introduced an option to file quarterly GST returns in a simplified format for small taxpayers. GST will have Sahaj and Sugam forms. Regular taxpayers with a turnover of up to Rs 5 crores can now file GST returns on a quarterly basis against the earlier limit of Rs 1.5 crores, either in ‘SAHAJ’ or ‘SUGAM’.As 93% of the Taxpayer has turnover less than Rs. 5 Crores.
- Small taxpayers making only B2C supplies can file Sahaj returns. Taxpayers making B2B supplies or making B2C and B2B supplies, but having turnover of Rs 5 crore or less, have been given an option to file ‘Sugam’ Returns on quarterly basis. The quarterly returns will be mostly be similar to the monthly returns, but require lesser information to be filled as compared to the regular returns. The taxes have to be self-assessed and paid on a monthly basis even for small taxpayers opting for the quarterly return scheme.
- Taxpayers without any purchase or sale in a period can file NIL returns through an SMS.The new returns also provide taxpayers the facility to amend their invoices and other details filed in the return by filing an amended return. Taxpayers can also make payment through the amendment returns and save on their interest liability.
- The other taxpayer who are not small taxpayers need to compulsory need to file Monthly Return.
Increase in the threshold limit for GST Registration
Higher Exemption Threshold Limit for Supplier of Goods (Notification No. 10/2019 – Central Tax, dated the 7th of March, 2019) : There would be two Threshold Limits for exemption from registration and payment of GST for the Suppliers of Goods i.e. Rs. 40 lakhs and Rs. 20 lakhs. States would have an option to decide about one of the limits. The Threshold for Registration for Service Providers would continue to be Rs. 20 lakhs and in case of Special Category States Rs. 10 lakhs.