The Central Board of Indirect Taxes and Customs, via Notification No. 29/2021 - Central Tax has announced that provisions of sections 110 and 111 of the Finance Act, 2021 shall come into force from 1st August 2021. Thus, starting 1st August 2021, taxpayers will not be required to get their annual accounts audited by a CA/CMA for furnishing an audited reconciliation statement in Form GSTR-9C.
The relevant text of the notification is as follows:
"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."
Background
In the Finance Act, 2021, it was been proposed to omit Section 35(5) of the CGST Act and substitute Section 44 of the CGST Act, so as to remove the mandatory requirement of getting annual accounts audited by a chartered accountant or a cost accountant and furnishing of audited reconciliation statement in Form GSTR-9C. Now, the annual return in Form GSTR-9 is to be provided on self-certified basis with a reconciliation statement.
Further, a proviso had been inserted to provide that the Commissioner may exempt any class of persons from filing annual returns upon receiving such recommendation from the GST Council.
Click here to read the official notification.
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