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Indirect Tax Alert - Self-Certification of GST annual return and reconciliation statement

02 August 2021

Self-Certification of GST annual return and reconciliation statement

Section 35(5) of the CGST Act 2017, which mandates a taxpayer whose turnover is more than INR 50mn to get audited of their GST annual accounts and certification of reconciliation statement by specified professional accountant is dispensed with. Correspondingly, section 44 of CGST Act, 2017 is substituted by enabling filing of self-certified reconciliation statements along with annual return. This comes into effect from 01 August 2021 and would be applicable for FY 2020-21 onwards. With the said changes, taxpayers can now self-certify the GST annual reconciliation statement accompanying the GST annual return instead of the requirement of getting the books of accounts audited either by the chartered accountant or the cost accountant.

[Notification no:29/2021–Central Tax dated 30 July 2021]

Prescribed changes in FORM GSTR-9 and FORM GSTR-9C

  • 31st  December following the end of a financial year has been prescribed as the due date for furnishing the annual return in FORM GSTR-9 & self-certified reconciliation statement as specified under section 44 in FORM GSTR-9C;
  • Relaxations provided while furnishing annual return in FORM GSTR-9 & reconciliation statement in FORM GSTR-9C in the previous periods has been extended for the period 2020-21 also;
  • A new row, ‘others’ has been introduced in the tables ‘Reconciliation of rate wise liability’, ‘Additional amount payable but not paid’ & ‘Additional Liability due to non-reconciliation’ in FORM GSTR-9C;
  • The part V of the FORM GSTR-9C containing ‘auditor's recommendation on additional Liability due to non-reconciliation’ has been replaced as ‘Additional liability due to non-reconciliation’;
  • The verification in part V has been substituted as self-declaration;
  • Part-B certification of GSTR-9C by an auditor has been dispensed with.

 The changes are applicable from August 01, 2021

[Notification no:30/2021–Central Tax dated 30 July 2021]

Exempts registered person having aggregate turnover upto INR 20 Mn from filing annual return

CBIC exempts registered person whose aggregate turnover in the financial year 2020-21 is up to INR 20mn, from filing the annual return for the said financial year. The notification will be applicable from 01 August 2021.

[Notification no:31/2021–Central Tax dated 30 July 2021]