Ministry of Finance Reduces Compliance Burden in GSTR-9C

Dec 18, 2021 in Sales and Accounts

2 MIN READ

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On Sunday last week, the Ministry of Finance has released some announcements on Twitter about the Relaxations for GST taxpayers. According to these announcements, the taxpayers who have their Annual Aggregate Turnover (AATO) up to Rs.5 crores did not require to file the reconciliation statement in Form GSTR-9C for F.Y. 2020-21 onwards.

Further, the Ministry of Finance made many more announcements regarding the GSTR-9 and GSTR-9C filing. But before talking about that, let's understand more about Form GSTR-9 and GSTR-9C.

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GSTR-9C | TranZact ( Ministry of Finance  Twitter update for Compliance Burden reduced for GST Taxpayers

What is Form GSTR-9?

The Form GSTR-9 is a return statement that registered taxpayers need to file every once a year. In GSTR-9, the taxpayers need to provide consolidated details of CGST, SGST, and IGST supplies made during the entire year. 

What is Form GSTR-9C?

The Form GSTR-9C is a statement of reconciliation between the GSTR-9 Annual Return for that specific Financial Year and the figures as per the audited annual Financial Statements of the taxpayer. In this form, the registered taxpayers need to file a copy of the audited annual accounts along with a reconciliation statement. Both these documents need to be duly certified by a Chartered or Cost Accountant.

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Who all needs to file GSTR-9 and GSTR-9C?

According to the CGST Act, 2017, all registered taxpayers need to file Form GSTR-9. But with the continuous changes happening over the years in the CGST Act with the help of circular and notifications, now, the taxpayers who have their AATO up to Rs.2 crores, the filing of GSTR-9 is optional for them. And the taxpayers who have their AATO of more than Rs.2 Crore in that Financial Year needs to mandatory file the GSTR-9 form.

GSTR-9C | TranZact  Ministry of Finance  Twitter update for Compliance Burden reduced for GST Taxpayers"

Till now, for GSTR-9C, the taxpayers who have their AATO up to Rs.2 crores did not have to file this form. But the taxpayers who have their AATO of more than Rs.2 Crore in that Financial Year needed to file the GSTR-9C. 

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Effects of this Announcement?

According to this latest announcement of the Ministry of Finance, the taxpayers who have their Annual Aggregate Turnover limit up to Rs.5 Crore did not mandatorily require to file form GSTR-9C.

Further, the Taxpayers with AATO above Rs.5 crores can now self-certify the reconciliation statement instead of getting it certified by a Chartered or Cost accountant. And all these changes are applicable from F.Y. 2020-21 and onwards.

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