Section 44 – Annual Return
Section 44 of CGST Act, 2017 – Annual Return
Updated on: February 2026 (as applicable till date)
Prepared by: Yours Tax Consultant
1. Scope and Importance of Section 44
Section 44 provides for the filing of annual return under GST. It acts as a consolidated summary of all returns filed during the financial year.
Annual return is a critical compliance tool used by:
- Tax authorities for audit and scrutiny
- Taxpayers for self-reconciliation
2. Statutory Provision – Section 44(1)
Every registered person, other than:
- Input Service Distributor
- Casual taxable person
- Non-resident taxable person
shall furnish an annual return for every financial year, on or before such date as may be prescribed.
3. Forms Prescribed for Annual Return
Based on category of taxpayer:
- GSTR-9 – Regular registered persons
- GSTR-9A – Composition taxpayers
- GSTR-9B – E-commerce operators (TCS)
These forms consolidate data from:
- GSTR-1
- GSTR-3B
- Other relevant returns
4. Due Date for Filing Annual Return
The annual return must be filed:
- On or before 31st December following the end of the financial year
The Government has power to extend the due date by notification.
5. Reconciliation Statement – Section 44(2)
Earlier, Section 44 required:
- Audit by Chartered Accountant / Cost Accountant
- Submission of reconciliation statement in GSTR-9C
Current Position (Post Amendment):
- Mandatory GST audit has been removed
- Self-certified reconciliation is applicable
- GSTR-9C is required only where notified
Thus, professional certification is no longer compulsory under Section 44.
6. Voluntary Nature of Annual Return for Small Taxpayers
The Government has exempted certain classes of taxpayers from mandatory filing of annual return, subject to turnover limits.
For such taxpayers:
- Filing of GSTR-9 is optional
This relaxation is notification-based and must be verified year-wise.
7. Section 44 Read with CGST Rules
Section 44 must be read with:
Rule 80 prescribes:
- Forms
- Class of persons required to file
- Exemptions and relaxations
8. Consequences of Non-Filing
Failure to file annual return may result in:
- Late fee under Section 47
- Difficulty in cancellation revocation
- Adverse audit observations
Late fee is capped as per notifications.
9. Relationship with Audit and Assessment
Annual return under Section 44 is used for:
- Selection for audit under Section 65
- Scrutiny under Section 61
- Assessment proceedings
Inconsistencies between annual return and monthly returns often trigger notices.
10. Common Practical Issues
- Mismatches between GSTR-1 and GSTR-3B
- Incorrect ITC disclosure
- Ignoring optional nature of GSTR-9
- Late filing due to reconciliation challenges
11. Related Provisions
- Section 39 – Furnishing of returns
- Section 35 – Accounts and records
- Section 65 – Audit by tax authorities
12. Professional Insight
Annual return is not just a compliance formality. It is a consolidated declaration of your GST position for the entire year and often becomes the starting point for audit and litigation.
Disclaimer: This article is prepared based on the CGST Act, CGST Rules, notifications and prevailing legal position as applicable till date. Future amendments or judicial pronouncements may require revision.
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