GST assesses can breathe easy as Finance Ministry has notified changes in the GST law so as to provide self-certification of reconciliation statement. New norms will come into effect from August 1.
Every registered GST assessee is required to file an annual return in Form 9. However, assesses with a turnover of more than ₹2 crore are also required to give a reconciliation statement (of sales, purchases and ITC credit availment) in Form 9C. Earlier this reconciliation statement was needed to be certified by Auditor or Chartered Accountant or Certified Management Accountant (CMA). However, Finance Act 2021 amended the norm, and had done away with requirement of certification by an auditor. The assesses themselves are now allowed to self certify the re-conciliation statement. This change in law has now been notified.
“Every registered person, other than those referred to in the second proviso to section 44, an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, whose aggregate turnover during a financial year exceeds five crore rupees, shall also furnish a self-certified reconciliation statement as specified under section 44 in FORM GSTR-9C along with the annual return referred to in sub-rule (1), on or before the thirty-first day of December following the end of such financial year, electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner, “ a notification issued by the Finance Ministry said.
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Aditya Singhania, Founder at Singhania’s GST Consultancy & Co explained this notification by saying that part B has been omitted from GSTR 9C where mandatory certification was required from CA or CMA. “Besides lifting up the mandatory certification, it does open up the opportunities for vide range of professionals and at the same time puts a responsibility on taxpayers to furnish details in Annual Return on the true and correct basis,” he said.
Earlier on May 28, GST Council recommended amendments in section 35 and 44 of the CGST Act made through Finance Act, 2021 to be notified. “This would ease the compliance requirement in furnishing reconciliation statement in FORM GSTR-9C, as taxpayers would be able to self-certify the reconciliation statement, instead of getting it certified by chartered accountants,” it said while adding that said the change will apply for Annual Return for FY 2020-21. The Council also recommended the filing of annual return in FORM GSTR-9/ 9A (Annual Return form for assesses opted for Composition Scheme) for FY 2020-21 to be optional for taxpayers having aggregate annual turnover up to ₹ 2crore. The reconciliation statement in FORM GSTR-9C for the FY 2020-21 will be required to be filed by taxpayers with an annual aggregate turnover above ₹ 5 crore.