Notification No. 29/2021-Central Tax dated 30.07.2021

Seeks to notify section 110 and 111 of the Finance Act, 2021 w.e.f. 01.08.2021.

Notification No. 30/2021-Central Tax dated 30.07.2021

Seeks to amend Rule 80 of the CGST Rules, 2017 and notify Form GSTR 9 and 9C for FY 2020-21. Rule 80 provides for exemption from GSTR-9C to taxpayers having AATO up to Rs. 5 crores.

Notification No. 31/2021-Central Tax dated 30.07.2021

Seeks to exempt taxpayers having AATO up to Rs. 2 crores from the requirement of furnishing annual return for FY 2020-21.

SUMMARY : 

1. Provisions of Section 110 & 111 of the Finance Act, 2021 made applicable 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.

Revised Section 44 is as follows:-

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.”.

2. Rule 80 of CGST Rules talks about Annual Return. CBIC has also done away with the requirement of a separate reconciliation statement in form 9C to be submitted by businesses, certified by a chartered accountant or cost accountant. The Central Goods and Services Tax (Sixth Amendment) Rules, 2021 which is effective from 1st August instead introduces self-certification. As per this, businesses with sales of ₹5 crore and above have to self-certify the statement reconciling the value of supplies declared in the return furnished for the financial year, with the audited annual financial statement. The idea is to reduce the compliance requirement and allow self-certification where possible in order to improve the ease of doing business. This puts the responsibility on taxpayers to furnish true and accurate details in their annual return on self- certification basis. This is applicable for FY 2020-21.

3. Businesses with upto ₹2 crore annual sales in FY21 need not file annual returns for that year, showed one of the orders. This is expected to be a relief to many small businesses.

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Experienced Tax professional with proven expertise in Indirect tax, Direct Taxes, Transfer Pricing and International Tax litigations and compliances. Member of Direct and Indirect Tax Committee in Bengal Chamber of Commerce, Member of Indirect Tax Expert Committee in Bangalore Chamber of Commerce, View Full Profile

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