GST yearly return filing has been liberalised, which is great news for small taxpayers. A new CBIC rule went into effect on August 1 that relaxed the yearly reporting requirements for firms. |
In three formal directives, the CBIC has made this excellent news known to the public. So let's take a closer look at this critical upgrade.
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 notification, there is an important 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.
Self Certification of the Statement for Taxpayers having GST Registration CBIC has also abolished one additional requirement, providing similar assistance to bigger taxpayers.
According to the announcement, the Central Goods and Services Tax (Sixth Amendment) Rules will go into effect on 1 August 2021 and need self-certification of form 9C.
This means that companies no longer have to provide a separate reconciliation statement on form 9C, certified by a chartered accountant or cost accountant, as previously required by CBIC. However, Self-certification is now mandatory for firms with revenues of 5 crores or higher.
According to Rajat Mohan, a senior partner at AMRG & Associates, GST audits by chartered accountants have been eliminated by the government, and now taxpayers must self-certify their yearly tax filing and reconciliation statements.
Thousands of taxpayers will benefit from this, but the danger of intentional and inadvertent misstatements in yearly files will grow, Mohan said.
Know the reasons why GST annual return filing liberalised As a result of the digitization of numerous reporting responsibilities, several tax and government entities now have access to data, according to Finance Minister Sitharaman in her Union Budget for FY22.
Analysis of these data allows for the discovery of discrepancies and the detection of tax evasion.
In order to ensure efficient tax administration, direct and indirect tax authorities, including the customs agency, are exchanging data.
To know more about GST Annual Return filing liberalised.
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