Govt omits GST Audit provision & amends Section 44 Annual return

Vide CGST Notification No. 29/2021-Central Tax dated 30/07/2021 CBIC has notified the provisions of Section 110 & 111 of the Finance Act, 2021 w.e.f. 01.08.2021. While Section 110 omits section 35(5) of CGST Act means GST Audit (GSTR-9C) by CA/CMA is no longer required and Section 111 substitutes section 44 (Annual return) of CGST Act, 2017. Extract of Section 110 and 111 of Finance Act, 2021 is as follows:-

110. Amendment of section 35.

In section 35 of the Central Goods and Services Tax Act, sub-section (5) shall be omitted.

Compliance obligation of mandatory requirement of getting annual accounts audited and submitting  reconciliation statement by specified professional removed to allow self-certification.

Before removal of Section 35(5), every registered person whose turnover during a financial year exceeded the prescribed limit of Rs. 2 crore, was required to get his accounts audited by a chartered accountant or a cost accountant and submit a copy of the audited annual accounts, the reconciliation statement under section 44(2) and such other documents in such form and manner as prescribed in CGST Rules.

111. Substitution of new section for section 44.

For section 44 of the Central Goods and Services Tax Act, the following section shall be substituted, namely:––

“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.”.

FULL TEXT OF THE NOTIFICATION IS AS FOLLOWS:-

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS)
New Delhi

Notification No. 29/2021-Central Tax Dated : 30th July, 2021

S.O. 3065(E).—In exercise of the powers conferred by clause (b) of sub-section (2) of section 1 of the Finance Act, 2021 (13 of 2021), the Central Government hereby appoints the 1st day of August, 2021, as the date on which the provisions of sections 110 and 111 of the said Act shall come into force.

[F. No. CBIC-20001/5/2021-GST]

RAJEEV RANJAN, Under Secy.

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