Briefly, the Section governing the Annual Return has undergone changes quite a few times till date. Latest one prevails since 1.08.2021 therefore the status till 31.07.2021 is relevant too.
Presently (w.e.f. 1.08.2021, all registered persons are required to submit an Annual Return, but without any audited Annual Statement. However, where annual aggregate turnover exceeds Rs.5 Crores, a Reconciliation Statement in Form 9C has to be submitted, except by a Central Government, State Government or a Local Authority whose books of Accounts are subject to Audit by the C&AG of India.
Earlier Section 44 had to be read with Section 35(5) which provided for Audit of annual account. But presently Section 35(5) stands omitted vide F. Act 2021, w.e.f. 1.08.2021.
Accordingly, presently Section 44 as amended vide F. Act 2021, w.e.f. 1.08.2021, requires an Annual Return –
- To be filed by a registered person (i.e. GSTIN), other than an ISD or a deductor of TDS or TCS, for every FY, within such Time, Form and Manner, as may be prescribed (in Rules);
- The return may include a self-certified reconciliation statement reconciling the value of supplies declared in the annual return with the audited annual financial statement;
- Commissioner (CBIC) may exempt a class of registered persons from filing of Annual Return.
- Section 44 not to apply to any department of Central Government, State Government or Local Authority whose books of accounts are subject to audit by C&AG of India.
Rule 80 (w.e.f. 1.08.2021) prescribes an Annual Return to be submitted by 31st December of next FY –
- in Form GSTR-9 by a normal taxpayer
- in Form GSTR-9A by a Composition taxpayer
- in Form GSTR-9B by an E-Commerce Operator (ECO)
Where the annual turnover in respect of a registered person (GSTIN) except a department of Central Government, State Government or a Local Authority ibid, exceeds Rs.5 Crores, such registered person has to –
- furnish a self-certified Reconciliation Statement in Form GSTR-9C also
EXEMPTION
Notification 31/2021 dated 30.07.2021 issued under 1st proviso to Section 44 (as existed till 31.07.2021) exempts Taxpayers having aggregate turnover up to Rs.2 Crores in FY 2020-21 from filing of Annual Return (for 2020-21).
TIME LIMIT
The ROD (Removal of Difficulty) Orders 8/2019 and 10/2019, dated respectively 14.11.2019 and 26.10.2019 extend last date –
- in respect of annual return for 1st July 2017 to the 31st March 2018, to 31st January, 2020.
- in respect of annual return for 1st April 2018 to the 31st March 2019, to 31st March, 2020.
The Notification 4/2021 dated 28.02.2021 extends last date –
- in respect of annual return for 1st April 2019 to the 31st March 2020, to 31st March, 2021.
Hitherto,
UPTO 31.07.2021, Section 44 required an Annual Return –
- to be filed by a registered person (i.e. GSTIN), other than an ISD or a deductor of TDS or TCS, for every FY, within such Form and Manner, as may be prescribed (in Rules);
- to be filed by the said registered person by 31st December of the next FY;
- to be filed by a date notified by the Commissioner (CBIC) in respect of a notified class of registered persons;
- to include an audited annual account where required under Section 35(5) (reproduced below) and a reconciliation statement reconciling the value of supplies declared in the return with the audited annual financial statement;
Section 35(5) omitted vide F. Act 2021, w.e.f. 1.08.2021 required –
- Every registered person whose turnover in a FY exceeded prescribed limit, to get his accounts audited by a Chartered Accountant or Cost Accountant and to submit a copy of the audited annual account and a reconciliation statement w.r.t. the Annual Return, with the Annual Return.
- A department of Central Government, State Government or a Local Authority whose books of Accounts are subject to Audit by the C&AG of India, is not required to get the accounts audited in terms of Section 35(5)
[However, as submitted the Section 35(5) stands omitted vide F. Act 2021, w.e.f. 1.08.2021].
