What is reconciliation?
The word “reconciliation” has not been defined under the GST Act. Although, in accounting terms, “reconciliation” can be explained as a process of matching balances at the end of a particular period to ensure two sets of accounting records agree with one another.
With the amendments brought out in Finance Budget, 2021, it has made been compulsory for every registered person excluding an Input Service Distributor to adhere to the following compliance mandates:
- Furnish annual return, electronically
- Furnish a reconciliation statement on a self-certification basis
Before the amendment in CGST Act, 2017, GST audit and reconciliation statement were to be filed by a Chartered Accountant/ Cost Accountant. It was compulsory for registered persons who had a turnover of more than Rs. 2 crores. However, the limit is not prescribed anymore and all registered persons are required to stick to the compliance requirements.
Source Taxguru
