The Central Board of Indirect Tax and Customs (CBIC) clarified the Goods and Service Tax (GST) Audit will be applicable for Financial Year 2019-20.
“Please note Section 35 and 44 of CGST Act are proposed to be amended in Finance Bill 2021. However, these proposals will come into effect from a date to be notified later. For FY 2019-20, the existing provisions shall continue,” the CBIC notified.
The Finance Minister, Nirmala Sitharam in her Budget Speech substituted Section 44 of the CGST Act so as to remove the mandatory requirement of furnishing a reconciliation statement (GSTR-9C) duly audited by a practicing chartered accountant or cost accountant and to provide for filing of the annual return (GSTR-9) on self-certification basis with a reconciliation statement.
Therefore, the responsibility of reconciliation has been shifted to the taxpayers now instead of GST auditors earlier.
It is noteworthy that the proposed changes are not applicable for Financial Year 2019-20 and the date on which the proposed changes will be enforced would be notified by the CBIC.
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