The Goods and Services Tax Council has simplified the return filing process for small businesses.  The GST Council, in its 28^th meeting held on 21^st July, 2018 in New Delhi, in principle approved the new return formats and associated changes in law for small businesses. Taxpayers who have a turnover upto ₹ 5 crores in the previous financial year shall have facility to file quarterly return with monthly payment of taxes on self-declaration basis. For such taxpayers, simplified returns have been designed called Sahaj and Sugam. Those taxpayers who have no purchases, no output tax liability and no input tax credit to avail in any quarter of the financial year shall file one NIL return for the entire quarter. NIL return filers shall have the facility to file return by sending SMS.

      The Goods and Services Tax Network (GSTN) will focus on development of new return filing system, improving the user interface and business intelligence and analytics. It is working to improve the “Offline Tool” for returns under GST and is focusing on improving the user interface constantly. The user interface of FORM GSTR-3B has been made simpler and user friendly. Taxpayers have been given the facility to file NIL return by simply pressing one button. Further, GSTN is working on business intelligence and analytics such as predictive analysis, statistical scoring, 360 degree view of taxpayers etc.

Comparison of data in FORM GSTR-1 and FORM GSTR-3B is being done by GSTN for tax liability analysis. Reports based on such analysis are being shared with tax authorities for taking necessary action.

This was stated by Shri Shiv Pratap Shukla, Minister of State for Finance in a Written reply to a question in Lok Sabha.

Simplified GST returns enable quarterly filing with monthly payments for eligible small taxpayers under new formats. The Council approved a simplified filing regime allowing eligible small taxpayers to file quarterly returns with monthly tax payments on a self-declaration basis via new formats Sahaj and Sugam; taxpayers with no purchases, no output liability and no input tax credit in a quarter may file one NIL return for the quarter (including an SMS filing option). GSTN will develop the new return system, improve offline and UI tools, enable one-click NIL filing, perform GSTR-1 and GSTR-3B reconciliation, and produce analytic reports for tax authorities.