2024 (4) TMI 993

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....ard together and disposed of with common judgment. 2. The relevant facts of one of the writ petitions i.e., (W.P (C) No. 30644 of 2023) are extracted hereunder which are almost similar to other writ petitions except for a few dates and figures. "The petitioner is an assessee under the provisions of the CGST/SGST Acts and has been filing proper returns under the Act. However the petitioner had filed the annual return in FORM GSTR -9 for FYs 2017-18, 2018-19 and 2019-20 belatedly. In any event, the petitioner has paid the late fee for belated filing of the annual returns for the said years under Section 47(2). But the respondent has demanded late fee and created huge demand by adopting the date of filing reconciliation statement in FORM GSTR-9C as the date of filing return by Ext. P4 order. Now the Central Government has introduced an amnesty scheme by Ext. P5 notification which is to be construed beneficial to the petitioner." 3. The petitioner is a proprietorship concern dealer under the CGST / SGST Act, 2017 and Rules made thereunder. The petitioner is engaged in trading of paint, cement, aluminum sheets and hardware etc. The petitioner has been filing his proper returns and ....

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.... return and not GSTR-9C reconciliation statement. 9. The respondent, however, did not agree with the objections raised by the petitioner, and passed the order in original dated 21.08.2023, confirming the demand of late fee of Rs. 2,93,600/- (Rs. 1,46,800/- under CGST Act and Rs. 1,46,800/- under the SGST Act) under Section 47(2) of the CGST / SGST Act, for delay in filing of returns prescribed under Section 44(2) of the CGST / SGST Act for the period from 2017-2018, 2019-2020. An amount of Rs. 57,600/- has been paid by the petitioner towards the late fee was appropriated against the demand confirmed. 10. Learned counsel for the petitioner has submitted that the Government has issued Notification No.7/2023-CT dated 31.03.2023, providing for an Amnesty Scheme with respect to the non-filers of GSTR-9 returns in exercise of the powers conferred under Section 128 of the CGST / SGST Act on the recommendation of the GST council, whereby, for non-filers of the returns for the financial years 2017-2018 to 2021-2022, time for filing the returns in GSTR-9 and 9C was initially provided upto 30.06.2023. By the subsequent notification No. 25/2023, i.e., 30.06.2023, it was extended up to 17.07.....

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....ut, with effect from 01.08.2021, now it is applicable for turnover exceeds Rupees Five Crores. 16. Before amendment, books and records needed to be audited under Section 35(5) and 9C reconciliation statement certified by Auditor/CA/CMA was required to be filed along with the reconciliation statement. Requirements under Section 35(5) were removed from the financial year 2020-2021 onwards, in view of the amendment effected with effect from 01.08.2021. 17. Now in view of the amendment, FORM GSTR-9C reconciliation statements to be self-certified by the taxpayers themselves. 18. Form GSTR-9C is used by the tax authorities to check the discrepancies in the taxpayer's reporting and compliance. If any discrepancy stands unresolved, the department can issue notice. Proper GST annual returns and reconciliation statements by the specified tax payers would lower the chances of any GST demand notices. 19. Before amendment brought by the Finance Act, 2021 with effect from 01.08.2021, the procedure for filing the GSTR-9C can be summarized as; a taxpayers having aggregate turnover upto Rs. Two Crores was to get accounted, audited annually under Section 35(5) of the CGST Act under Section 35(5)....

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....rnished on or before the 1st December, 2019 and the annual return for the period from the 1st April, 2018 to the 31st March, 2019 shall be furnished on or before the 31st March, 2020.] - Removal of Difficulty order dt. 14.11.2019* Section 35(5) which was omitted by the Finance Act, 2021 with effect from 01.08.2021 would read as under. S. 35(5): Every registered person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant and shall submit a copy of the audited annual accounts, the reconciliation statement under subsection (2) of section 44 and such other documents in such form and manner as may be prescribed Rule 80(3) which prescribes annual return before its substitution by Notification 30/2021 dated 30.07.2021 with effect from 01.08.2021 would read as under:- Rule 80 Annual return.- (3): Every registered person 'other than those referred to in the proviso to sub-section (5) of section 35, whose aggregate turnover during a financial year exceeds two crore rupees shall get his accounts audited as specified under sub-section (5) of section 35 and he shall furnish a copy of audited....

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....viso 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." 22. From the reading of the aforesaid provisions, it would be relevant to note that two key changes have been made by the Finance Act, 2021 with effect from 01.08.2021 i.e Section 35(5) CGST / SGST Act stands omitted, Section 44 of the CGST / SGST stands substituted. Form GSTR-9C becomes applicable to taxpayers with an annual aggregate turnover of more than Rs. Five Crores. CA/ CMA certification stands removed from financial years 2020-2021. With effect from 01.08.2021, taxpayers are now required to self-certify a voluntary reconciliation statement and file it with the tax authori....