CBDT: Companies Immune to GST & GAAR Audit Reports Till Mar 2021

The Income Tax Department once again postponed the requirement for the companies to give the details of GST and GAAR in their audit reports. The department has deferred the compliance until 31 March 2021 which means until the said date all the GST registered companies Get to know the complete GST registration procedure online on the Indian government GST portal official website. We have explained by the actual screenshot of every step. Read more are immune from giving details of Goods and Service Tax and General Anti-Avoidance Rules (GAAR).

As mandated by law, GST registered businesses with an aggregated turnover of Rs. 1 crore per year (2 crores for businesses opting for presumptive taxation) and professionals with a total income of Rs. 50 lakh or more per year are required to have to fulfill audit requirements. The due date for filing audit reports is 30 September and if the taxpayer comes under transfer pricing provision then the last date is 30 November.

Orders by CBDT issued on Monday stated that paying heed to the difficulties encountered by the taxpayers while reporting the requirements under clause 30C (GAAR) and clause 44 (GST compliance) of Form 3CD due to COVID 19 crises the department hereby accepts the request of deferment of its applicability in audit reports. The situation has been thoroughly investigated and the conclusion said that due to corona crises in India, the board decides to extend the deadlines for reporting under clause 30 and clause 44 of the tax audit report till 31 March 2021, said Central Board of Direct Taxes (CBDT).

In July 2018, the IT Department amended the audit form 3CD Brief information about form 3CA and 3CB with their applicability while filing income tax return. Also, We have also mentioned their major components. Read more to include the details of GST and GAAR so that the companies are under check and it is assured that they are not routing the transactions through other countries to escape from taxes. Changes were said to be in effect from 20 August 2018. The stakeholders then complained that the amendment introduced is just an add on to the already existing burden on the companies and therefore CBDT deferred the implementation of the amendment till March 2019. In March 2019, the date again extended till 31 March 2020, and now on 24 April 2020 the date has been shifted to 31 March 2021.

Consulting firm AKM Global Tax Partner Amit Maheshwari said, “We don’t have detailed guidance on certain aspects related to reporting on GAAR. This certification poses a challenge to auditors as it is very subjective in nature. Though this deferment comes as a relief to the auditors, it is better to do away with this requirement as it is not fair to expect the auditors to comment on such a subjective piece of legislation.” According to Nangia Andersen LLP Director Sandeep Jhunjhunwala, the deferment in reporting the GST and GAAR details is the clear indication that CBDT is ensuring the convenience of the taxpayers who are already dealing with COVID-19 crises. Moreover, the tax authorities are coming up with reliefs in tax compliance and reporting requirements for the companies.

Download Circular No. 10/2020 by CBDT in PDF Format