A piece of very good news for small taxpayers as GST annual return filing is now liberalised. Effective 1 August, the CBIC has liberalised the annual return filing requirement for companies. The CBIC has notified this good news via notification in three official orders. It is an important update, so let us understand it in detail about GST Annual Return Filing Liberalised.
GST annual return filing liberalised w.e.f from August 1st, 2021
The CBIC has announced a new rule in Central Goods and Services Tax (Sixth Amendment) Rules, 2021 to be effective from August 1st, 2021.
As per the Government Notification, there is a significant relief for taxpayers having turnover up to Rs. 2 Crores.
The relief is that businesses with up to ₹2 crore annual sales in Financial Year 2021 need not file annual returns for that year.
Why GST annual return filing liberalised
Finance Minister Sitharaman stated in her union budget for FY22 that she intended to allow self-certification as after the digitalization of different filing obligations, many tax and governmental authorities now have access to data.
In addition, It is possible to discover mismatches and detect tax evasion through the analysis of this data.
In order to ensure efficient tax administration, direct and indirect tax authorities, including the customs agency, are exchanging data. This also seems to be a positive and encouraging step by the government to increase the number of businesses having GST Registration.
Self Certification of the Statement for Taxpayers having GST Registration
Similarly giving relief to larger taxpayers, CBIC has also eliminated one more mandatory requirement.
As per the notification, With effect from 1 August 2021, the Central Goods and Services Tax (Sixth Amendment) Rules establish self-certification of form 9C.
In other words, CBIC has also eliminated the requirement for firms to provide a separate reconciliation statement in form 9C, verified by a chartered accountant or cost accountant. Thus, Firms with sales of 5 crores or more now have to self-certify a statement reconciling the value of supplies stated in their annual return to their audited financial statement.
However, businesses can optionally hire Chartered Accountants or Cost Accountants to file GST Returns accurately and on time.
Bank Account Updation mandatory in GST Registration else Deactivated
If you want any other guidance related to GST Registration or GST Return Filing, please feel free to talk to our business advisors at 8881-069-069.
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