CGST Section 44: Furnishing Annual Return

Provisions under Section 44 of the CGST Act 2017 relating to “Furnishing Annual Return”:

Section 44: Annual Return (CHAPTER IX: RETURNS) [*1&2]

(1) Every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person shall furnish an annual return which may include a self-certified reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year, with the audited annual financial statement for every financial year electronically, within such time and in such form and in such manner as may be prescribed: [*3]

Provided that the Commissioner may, on the recommendations of the Council, by notification, exempt any class of registered persons from filing annual return under this section:

Provided further that nothing contained in this section shall apply to any department of the Central Government or a State Government or a local authority, whose books of account are subject to audit by the Comptroller and Auditor-General of India or an auditor appointed for auditing the accounts of local authorities under any law for the time being in force.

(2) A registered person shall not be allowed to furnish an annual return under sub-section (1) for a financial year after the expiry of a period of three years from the due date of furnishing the said annual return: [*3]

Provided that the Government may, on the recommendations of the Council, by notification, and subject to such conditions and restrictions as may be specified therein, allow a registered person or a class of registered persons to furnish an annual return for a financial year under sub-section (1), even after the expiry of the said period of three years from the due date of furnishing the said annual return.

Notes (History of Amendments in Bare Text):

1. CGST Section 44 introduced vide GOI Notification dated 12/04/2017, followed with CBEC Notification 9/2017 on commencement date of 01/07/2017.

2. Section 44 substituted vide Section 111 of the Finance Act 2021, applicable w.e.f. 01/08/2021 as per Notification 29/2021 dated 30/07/2021. Please refer Notification dated 12/04/2017 for initial text comprising of sub-section (1) and (2) before substitution. Further, please refer following Notifications for respective insertions and amendments:

(a) First and second Proviso to sub-section (1) inserted vide section 98 of the Finance Act, 2019, followed with Notification 1/2020 on commencement date of 01/01/2020.

(b) Explanation inserted after sub-section (2) vide ROD Order 1/2018 w.e.f. effective from 11/12/2018. There were modifications in this Explanation, as under:

i) The text “31st March, 2019” substituted with the text “30th June, 2019” from 31/12/2018 vide ROD Order 3/2018.

ii) The text “30th June, 2019” substituted with the text “31st August, 2019” from 28/06/2019 vide ROD Order 6/2019.

iii) The text “31st August, 2019” substituted with the text “30th November, 2019” from 26/08/2019 vide ROD Order 7/2019.

(c) Explanation to sub-section (2) substituted from 14/11/2019 vide ROD Order 8/2019 dated 14/11/2019. There was a modification in this substituted Explanation, as under:

i) The text “31st December, 2019” substituted with the text “31st January, 2020” from 26/12/2019 vide ROD Order 10/2019 dated 26/12/2019.

3. Section 44 renumbered as sub-section (1) and a new sub-section (2) inserted thereafter, vide the Finance Act, 2023, followed with Notification 28/2023 on commencement date of 01/10/2023.