Abolition of GST annual audit requirement could save up to ₹30K crore annually

The government’s decision to do away with the mandatory Goods and Services Tax (GST) annual audit requirement by professionals such as chartered accountants will help over 10 million firms save audit fees worth about ₹30,000 crores annually, besides reducing compliance burden, two officials with direct knowledge of the matter said.


The Budget proposes removing the mandatory requirement of getting the accounts audited and the reconciliation statement submitted by specified professionals, such as chartered accountants, in the GST regime, they said requesting anonymity.


“The Finance Bill, 2021 will amend the law, which will be notified soon after. The basic purpose of this move is to expand the GST base by reducing compliance burden and save businesses, particularly small firms, from paying auditing fees to professionals,” one official said.


In fact, the decision to this effect was already taken by the GST Council in March last year, but could not be implemented due to spread of Covid-19 pandemic and subsequent lockdown, a second official said.


Source: https://www.hindustantimes.com/business/abolition-of-gst-annual-audit-requirement-could-save-up-to-30k-crore-annually-101614594802355.html

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