The provisions for annual return and GST audit & reconciliation have been amended w.e.f 01.08.2021

As per  Notification No. 29/2021-Central Tax dated 30.07.2021 provisions of sections 110 and 111 of the said Act

• Finance Act, 2021 had amended section 35(5) and 44 of CGST Act, 2017 by section 110 and 111 respectively:
• Section 35(5) on mandatory requirement of audit of annual return and reconciliation statement was omitted.
• Section 44 of CGST Act, 2017 on annual return was substituted to remove mandatory requirement of furnishing a reconciliation statement duly audited by specified professionals and to provide for filing of annual return on self certification basis. Commissioner was also empowered to exempt any class of taxpayers from such requirements.

As per Notification No. 30/2021-Central Tax dated 30.07.2021 Changes in Annual Return:

• Rule 80 of CGST Rules, 2017 has been substituted by CGST (6^th Amendment) Rules, 2021 w.e.f. 01.08.2021, consequent upon new section 44 being made applicable from 01.08.2021.
• All specified persons shall be required to file annual return u/s 44 of the CGST Act, 2017 in Form GSTR-9 on or before 31^st December following the end of relevant financial year.
• Specified persons include registered persons (other than exempt), input service distributor, persons deducting tax (TDS) or collecting Tax (TCS), casual taxable person and non -resident taxable persons.
• Annual return shall be filed electronically through common portal directly or through notified Facilitation Centre.
• Persons paying tax u/s 10 (Composition dealers) shall file annual return in Form GSTR 9A.
• E-commerce operators required to collect tax at source (TCS) shall file annual statement as per section 52 (5) in Form GSTR-9B.
• Specified persons as above whose aggregate turnover during a financial year exceeds Rs. 5 crore shall also furnish a self-certified reconciliation statement in Form GSTR 9C alongwith annual return on or before 31^st December following the end of relevant financial year electronically on common portal or through a notified facilitation centre.
• The verification of Form GSTR 9C shall now be done by the registered persons itself.
• Enabling amendments have also been made in Form GSTR 9 and GSTR 9C.
• Auditors recommendation on additional liability due to non-reconciliation has been omitted with respect to Form GSTR 9C.
• Chartered accountant/ Cost accountant certification has been omitted under Part B of Form GSTR 9C.

As per Notification No. 31/2021-Central Tax dated 30.07.2021 Exemption from filing of annual returns under GST

• Exemption has been provided to registered persons under GST law from filing of annual return for the financial year 2020-21
• Exemption shall be available to those persons whose aggregate turnover in FY is upto Rs. two crore only
• This exemption has been provided by Commissioner on the recommendations of GST Council in terms of new section 44.
• This exemption is effective from 01.08.2021.

These notifications i.e. Notification No. 29/2021-Central Tax, Notification No. 30/2021-Central Tax and Notification No. 31/2021-Central Tax, all dated 30.07.2021 shall come into force w.e.f. 01.08.2021