Removal of mandatory audit by CA/CMA under GST

Certain notifications have been issued by the CBIC yesterday relating to filing of Annual Return in FORM GSTR-9 and Reconciliation Statement in FORM GSTR-9C. A brief summary of them all is as below:

Notification No. 29/2021 – Central Tax

The provisions of Sec 110 & Sec 111 of the Finance Act, 2021 have been notified to come into effect from 01^st Aug, 2021.

Sec 110 omits sub-section (5) of Sec 35 of the CGST Act dealing with mandatory requirement of audit under GST by a CA/CMA.

Sec 111 amends Sec 44 of the CGST Act dealing with provisions of Annual Return & Reconciliation Statement. FORM GSTR-9C shall now be self-certified by the taxpayer itself instead of being certified by a CA/CMA.

Notification No. 30/2021 – Central Tax

CGST (Sixth Amendment) Rules, 2021 have been notified making amendments in Rule 80 and FORM GSTR-9 & FORM GSTR-9C. The highlights are as follows:

• e.f 01^st Aug, 2021, Reconciliation Statement in Form GSTR-9C has been made applicable for only those registered persons whose aggregate turnover exceeds 5 crore rupees.
• Said Form has to be self-certified by the taxpayer instead of being certified by any professional.
• Current Form GSTR-9 as well as Form GSTR-9C would continue for the year 2020-21 as well.
•  In case of Tables 6B, 6C, 6D & 6E of FORM GSTR-9, the input tax credit pertaining to capital goods to be shown separately for F.Y 2020-21.
• For F.Y 2020-21, information in Tables 7A to 7H of FORM GSTR-9 regarding reversal of ITC can be reported under Table 7H only instead of being reported separately.
• Tables 15,16,17 & 18 of FORM GSTR-9 would be optional for F.Y 2020-21 as well.
• The relaxations provided in reporting figures in case of certain tables of FORM GSTR-9C for F.Y 2019-20 would continue for F.Y 2020-21 as well.
• Verification table by Auditor in PART-A of FORM GSTR-9C has been removed and only verification by the registered person is required now. Total responsibility has been shifted on the taxpayer.
• PART-B of FORM GSTR-9C related to certification by CA/CMA has been done away with as the said Form is now to be self-certified by the taxpayer.

Notification No. 31/2021 – Central Tax

It is issued under first proviso to Sec 44 thereby exempting the registered persons whose aggregate turnover in the financial year 2020-21 is up to two crore rupees from filing the Annual Return in Form GSTR-9 for the F.Y 2020-21.