The mandatory requirement of furnishing a Reconciliation Statement in Form GSTR-9C certified by a Chartered Accountant has been removed. (Read below relevant section along with relevant notification)
As per Notification No.29/2021 CGST dated 30-07-2021 following amendments has been done in the Finance Act 2021.
It shall be applicable from 01-08-2021.
Sub-section 5 of section 35 CGST shall be omitted. Section is reproduced. Sub-section (5) states that every registered person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant and shall submit a copy of the audited annual accounts, the reconciliation statement under sub-section (2) of section 44 and such other documents in such form and manner as may be prescribed:
Provided that nothing contained in this sub-section shall apply to any department of the Central Government or a State Government or a local authority, whose books of account are subject to audit by the Comptroller and Auditor-General of India or an auditor appointed for auditing the accounts of local authorities under any law for the time being in force.
For section 44 of the Central Goods and Services Tax Act, the following section shall be substituted, namely:–– Amended section section 44
“Every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person shall furnish an annual return which may include a self-certified reconciliation statement, reconciling the value of supplies declared in the return furnished for the
financial year, with the audited annual financial statement for every financial year electronically, within such time and in such form and in such manner as may be prescribed:
Provided that the Commissioner may, on the recommendations of the Council, by notification, exempt any class of registered persons from filing annual return under this section.
Provided further that nothing contained in this section shall apply to any department of the Central Government or a State Government or a local authority, whose books of account are subject to audit by the Comptroller and Auditor-General of India or an auditor appointed for auditing the accounts of local authorities under any law for the time being in force.”.
NOTIFICATION No. 31/2021–Central Tax In exercise of the powers conferred by the first proviso to section 44 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Commissioner, on the recommendations of the Council, hereby exempts the registered person whose aggregate turnover in the financial year 2020-21 is upto two crore rupees, from filing annual return for the said financial year. This notification shall come into force from the 1st day of August, 2021.
Vide Notification Number 29/2021 – Central Tax, the Section 110 and 111 of the Finance Act, 2021 is made effective w.e.f. 01st August 2021.
Section 110 – Removed the requirement of GST audit by a chartered accountant or a cost accountant and furnishing of audited reconciliation statement in Form GSTR-9C.
Section 111 – Changed Annual Return filling section in GST in a way that the Form GSTR-9 can be filled with a self-certified reconciliation statement. Also the due date for filling will be now based on notification. Earlier chartered accountant or a cost accountant certified GSTR 9C was required. Also the Commissioner is now empowered to exempt any class of registered persons from filing annual return.