Arjuna (Fictional Character): Krishna, The due date for Tax Audits for financial year 2018-19 has just passed. But the new challenge is awaiting for professionals in near future, what is it?

Krishna (Fictional Character): Arjuna, The professionals have just finished uploading Tax Audits for financial year 2018-19. But the more difficult challenge awaiting for professionals is GST Audit for financial year 2017-18. The extended due date for filing GST Annual Return and GST Audit is 30th November, 2019. So, now the professionals will to timely accomplish this target.

Arjuna: Krishna, In 37th GST Council Meeting held on 20th September, 2019, what recommendation was made for simplifying GST Annual Return and GST Audit Report?

Krishna: Arjuna, In 37th GST Council Meeting, it was recommended to constitute a committee of officers to examine the simplification of forms for Annual Return and Audit Report (Reconciliation Statement). But the due date for filing GST Annual Return and Audit Report is approaching so there is state of confusion in tax payers and professionals. All confused are as to, whether to wait for simplification of Forms or to upload it in the Form previously provided

Arjuna: Krishna, Further Annual Return was made optional for taxpayers whose turnover is below 2 crore, so what should the taxpayers do in that situation?

Krishna: Arjuna, The filing of Annual Return for Financial Year 2017-18 and 2018-19 has been made optional for taxpayers whose turnover is below 2 crore in the relevant financial year i.e. from July 2017 to March 2018 as clarified by the government. But if the taxpayer fails to file Annual Return, then it would be assumed that taxpayer has filed his Annual Return on 30th November, 2019. It would mean that the details provided in monthly returns of Financial Year 2017-18 stands correct and if difference is observed later, then such taxpayer would be served notice u/sec 74. The taxpayer in such cases would be penalized with penalty of minimum 25% to maximum 100% of tax payable along with tax payable and interest. So, it is advisable for taxpayers having turnover below 2 crore, should duly file Annual Return and rectify the mistakes made in returns previously filed.

Arjuna: Krishna, what lesson the taxpayer should take from this?

Krishna: Arjuna, The steps taken by Government have not still benefitted the taxpayers. The simplification of for Annual Return and Audit Report GST is still awaited and due date is approaching soon. The option for filing GST Annual Return is also not an option as it deemed filing could lead to heavy penalties. So, it is advisable that taxpayer should file their GST Annual Returns and Audit Reports soon to avoid last-minute hustle and bustle.

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2 Comments

  1. CA Priya M Patil says:

    Your all Articles and videos are ‘Sanjeevani’ for us.It really make us to work properly and to clear our doubts.Thank You very much for that.
    I have one query regarding Turnover to be considered for FY 2017-18 i.e. Rs.2 crore for 9C audit to be calculated for whole year or related to period from 01.07.2017 to 31.03.2019.As per Press release on 3rd July,2019,I think Form 9C applies if TO for 9 months period exceeds Rs.2cr.for the FY 2017-18.Kindly clarify on this as our client has still confusion and also give your suggestions.

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