The filing of GST annual return is governed by Section 44 of the CGST Act, 2017. This Section had witnessed a major amendment by Finance Act, 2021 whereby as per amended Section the annual return may include a self-attested reconciliation statement, reconciling the value of supplies declared in the returns furnished for the financial year, with the audited annual financial statement furnished for the financial year. This amendment was required due to the abolition of GST Audit under Section 35(5) of the CGST Act, 2017. The amendments made in Section 44 and omission of Section 35(5) has been enforced from 1st August 2021 vide Notification No 29/2021-Central Tax dated 30.07.2021
The amended Section 44 of the CGST Act, 2017 as substituted from 1st August 2021 is reproduced below for the ready reference of our readers:
“44. Annual return.
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.”
Amendment in Rule 80 of CGST Rules, 2017
Rule 80 of the CGST Rules deals with the filing of annual return. In consonance to the amendment made in Section 44 , the consequential amendment has been carried out in Rule 80 of the CGST Rules vide Notification No 30/2021-Central Tax dated 30.07.2021. The major amendments is towards the inclusion of the requirement of filing of self-certified reconciliation statement and prescribing of time period of filing annual return, which was earlier covered in Section 44 and now been shifted to Rule 80 of the CGST Rules, 2017.
The substituted Rule 80 is given below for ready reference of our readers:
“80. Annual return.- (1) 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, shall furnish an annual return for every financial year as specified under section 44 electronically in FORM GSTR-9 on or before the thirty-first day of December following the end of such financial year through the common portal either directly or through a Facilitation Centre notified by the Commissioner:
Provided that a person paying tax under section 10 shall furnish the annual return in FORM GSTR-9A.
(2) Every electronic commerce operator required to collect tax at source under section 52 shall
furnish annual statement referred to in sub-section (5) of the said section in FORM GSTR – 9B.
(3) 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.”.
Amendment in Form GSTR-9
Several amendments have also been made in Form GSTR-9 for the FY 2020-21 in the instructions part whose major highlights are as under:
I)Additional liability for FY 2020-21 can be declared, however, no ITC can be availed thereof.
ii) Relaxation in disclosure of break up of Input Tax Credit (Table 6B, 6C, 6D, 6E), ITC reversal (table 7A to 7H) etc
iii) Particulars of transactions for FY 2020-21 declared in returns for the next FY (Part V of GSTR-9) will cover period April 2021 to September 2021.
The amendments made in FORM GSTR-9, in the instructions part are as under:
(a) in paragraph 4, –
(A) after the word, letters and figures “or FY 2019-20”, the word, letters and figures “or FY 2020-21” shall be inserted;
(B) in the Table, in second column, for the word and figures “and 2019-20” wherever they occur, the word and figures “, 2019-20 and 2020-21” shall be substituted;
(b) in paragraph 5, in the Table, in second column, –
(A) against serial number 6B, after the letters and figures “FY 2019-20”, the letters, figures and word “and 2020-21” shall be inserted;
(B) against serial numbers 6C and 6D, –
(I) after the word, letters and figures “For FY 2019-20”, the word and figures “and 2020-21” shall be inserted;
(II) for the word and figures “and 2019-20”, the figures and word “, 2019-20 and 2020-21” shall be substituted;
(C) against serial number 6E, for the letters and figures “FY 2019-20”, the letters, figures and word “FY 2019-20 and 2020-21” shall be substituted;
(D) against serial number 7A, 7B, 7C, 7D, 7E, 7F, 7G and 7H, in the entry, for the figures and word “2018-19 and 2019-20”, the figures and word “2018-19, 2019-20 and 2020-21” shall be substituted;
(c) in paragraph 7, –
(A) after the words and figures “April 2020 to September 2020.”, the following shall be inserted, namely: –
“For FY 2020-21, Part V consists of particulars of transactions for the previous financial year but paid in the FORM GSTR-3B between April 2021 to September 2021.”;
(B) in the Table, in second column, –
(I) against serial numbers 10 and 11, after the entries, the following entry shall be inserted, namely: –
“For FY 2020-21, details of additions or amendments to any of the supplies already declared in the returns of the previous financial year but such amendments were furnished in Table 9A, Table 9B and Table 9C of FORM GSTR-1 of April 2021 to September 2021 shall be declared here.”;
(II) against serial number 12, –
(1) after the words, letters and figures “For FY 2019-20, the registered person shall have an option to not fill this table.”, the following entry shall be inserted, namely: –
“For FY 2020-21, aggregate value of reversal of ITC which was availed in the previous financial year but reversed in returns filed for the months of April 2021 to September 2021 shall be declared
here. Table 4(B) of FORM GSTR-3B may be used for filling up these details.”;
(2) for the figures and word “2018-19 and 2019-20”, the figures and word “2018-19, 2019-20 and 2020-21” shall be substituted;
(III) against serial number 13, –
(1) after the words, letters and figures “reclaimed in FY 2020-21, the details of such ITC reclaimed shall be furnished in the annual return for FY 2020-21,”, the following entry shall be inserted, namely: –
“For FY 2020-21, details of ITC for goods or services received in the previous financial year but ITC for the same was availed in returns filed for the months of April 2021 to September 2021 shall be declared here. Table 4(A) of FORM GSTR-3B may be used for filling up these details. However, any ITC which was reversed in the FY 2020-21 as per second proviso to sub-section (2) of section
16 but was reclaimed in FY 2021-22, the details of such ITC reclaimed shall be furnished in the annual return for FY 2021-22.”;
(2) for the figures and word “2018-19 and 2019-20”, the figures and word “2018-19, 2019-20 and 2020-21” shall be substituted;
(d) in paragraph 8, in the Table, in second column, for the figures and word “2018-19 and 2019-20” wherever they occur, the letters, figures and word “2018-19, 2019-20 and 2020-21” shall be substituted.”
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CA. Mohammad Salim is an ICAI award winning Chartered Accountant having rich experience of more than 20 years in the field of indirect taxes. He is the Member, Indirect Taxes Committee of PHD Chamber of Commerce and Industry. He is author of four successful books on GST published by Taxmann Publication and is also GST expert on taxmann portal.
