On July, 21st 2018, in the 28th GST Council Meet the new and simple GST Return filing system was introduced. Sahaj and Sugam are the two new format introduced.

These new formats were introduced to benefit the taxpayers with turnover below 5crs. The number of these taxpayers is nearly 90%.

Benefits of Sahaj and Sugam

The small taxpayers with turnover less than 5crs will be benefited from these formats. Filing the return quarterly will be an option available to these small taxpayers along with the monthly tax payment on the self-declaration basis.

Though the quarterly filing option is optional, the taxpayers can file return monthly as well as that of large taxpayers. This option to file return monthly or quarterly can be selected by the small taxpayers during the beginning of the year and same shall be continued during the whole accounting year.

The other benefits are listed below:

Quarterly Return Filing option

  1. Taxpayers with turnover below 5crs can file any of the 3 returns: Quarterly, Sahaj & Sugam ReturnThe quarterly return will be the same as that of the monthly return but it has been simplified and might not have the compliance requirement for:
  2. Supplies that don’t have tax liability such as Non-GST and Exempted supplies.
  3. The ITC related to capital goods shall not be required, but might be required in the annual return

Sahaj and Sugam Return:

Small taxpayers mostly have sales and purchases from the Indian market, or you can say B2B purchases within India and B2C or B2B & B2C supplies within India.

Two simplied return filing format has been introduced to for these taxpayers as a large amount of tax base is compounded from here.

The two new format introduced are

  1. Sahaj, for those taxpayers who have B2C supplies only.
  2. Sugam, for taxpayers who have both B2B and B2C supplies

Payment Of Monthly Taxes

Using a payment declaration form the small taxpayers will pay the tax payments for the first 2 quarter.

The declaration of self-declared Liability and ITC on the self-declared basis will be mentioned in the payment declaration form.

Government has helped the taxpayers with matching the liability arises from the invoices uploaded and the ITC claimed, this will help them in availing the ITC.

Interest or a late fee will be levied on taxpayers failing to make full payment of their taxes in the first 2 quarters. This liability is calculated on the basis of the invoices uploaded by the taxpayer.


Sahaj and Sugam is one good step to simplify the GST return filing taken by the government. In the next article, we will talk about the effect of the new GST filing format on Large Taxpayer.

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