CA certificate format for GSTR-10 final return
Certificate under the State Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017 in terms of Section 29(5) of the said Acts
Independent Practitioner’s Certificate under the Central Goods and Services Tax Act, 2017
(in terms of Section 29(5) of the said Acts and Rule 44(5) of the Rules issued thereunder.)
Name and Address of the Applicant
- This Certificate is issued in accordance with the terms of our agreement dated ……………….
- M/s. ………………………….. (hereinafter referred to as the “Applicant’) is a registered person vide GSTIN……………………… and is having its principal place of business at ………………………………………………..
………………………………….. in the State of …………… The Applicant has the following additional places of business:
(a) ____________________________________________
(b) ____________________________________________ - In terms of Section 29(5) of the CGST and SGST/UTGST Acts read with Rule 44 of the CGST and SGST/UTGST Rules, 2017, every registered person whose registration is cancelled shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock or capital goods or plant and machinery on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher by declaring the same, electronically, on the Common Portal in Form GSTR-10 (hereinafter referred to as the “Statement”).
- As per Rule 44(3) of the CGST and SGST/UTGST Rules, 2017, where the tax invoices related to the inputs held in stock are not available, the registered person shall estimate the amount mentioned in para 3 above, based on the prevailing market price of the goods on the effective date of the occurrence of the event specified in section 29(5) of the CGST Act and SGST/UTGST Acts. As per Rule 44(5) of the CGST and SGST/UTGST Rules, 2017, the details so furnished in the above statement shall be duly certified by a practicing Chartered Accountant or a Cost Accountant.
Management’s Responsibility for the Statement
- The preparation of the Statement and declarations in relation to the stock required in terms of the CGST and SGST/UTGST Acts and Rules issued under the said Acts is the responsibility of the Management of …………………………….. [Name of the Applicant] including the preparation and maintenance of all accounting and other relevant supporting records and documents. This responsibility includes the design, implementation, and maintenance of internal control relevant to the preparation and presentation of the Statement and declaration and applying an appropriate basis of preparation; and making estimates that are reasonable in the circumstances.
The management is also responsible for ensuring that the Applicant complies with the requirements of CGST and SGST/UTGST Acts and CGST and SGST/UTGST Rules, 2017.
- Management of the Applicant is responsible to conduct physical verification of inputs held in stock, semi-finished goods and finished goods held in stock and capital goods and plant and Machinery on the day immediately preceding ……………, the date of such cancellation under section 29 of the CGST Act and SGST/UTGST Acts.
- Management of the Applicant is responsible to ensure that books, records documents and information made available for purposes of verification are truthful and reliable, extracted from contemporaneous records for the purposes of establishing reliability of assertions made by them.
Practitioner’s Responsibility
- Pursuant to the requirements of Section 29(5) of the CGST and SGST/UTGST Acts read with Rule 44(5) of the CGST and SGST/UTGST Rules, 2017, it is our responsibility to examine the books of accounts and other relevant documents / records of the Applicant and to provide a reasonable assurance as regards the identification of the quantum of the amounts declared in the Form GSTR-10 to the extent they relate to details of inputs held in stock, inputs contained in semi-finished or finished goods held in stock, and capital goods/plant and machinery held in stock on the day immediately preceding the date on which registration has been cancelled under the CGST and SGST/UTGST Acts and in respect of which the tax invoices are not available but input tax credit is required to be reversed and paid back to Government, in a manner computed in Rule 44(3) of the CGST and SGST/UTGST Rules, 2017.
We have conducted our examination in accordance with the Guidance Note on Reports or Certificates for Special Purposes (Revised 2016) issued by the Institute of Chartered Accountants of India. The Guidance Note requires that we comply with the ethical requirements of the Code of Ethics issued by the Institute of Chartered Accountants of India.
We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC- 1), Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.
Opinion
- We have examined the books of accounts and other relevant documents / records of the Applicant for the purpose of Section 29(5) of the CGST Act and SGST/UTGST Act and Rule 44(3) of CGST and SGST/UTGST Rules.
- Based on our examination as above and the information and explanation given to us, in our opinion, the amounts declared by the Management of the Applicant as annexed herewith in Annexure – A and which is related to inputs held in stock, inputs contained in semi-finished or finished goods held in stock, and capital goods / plant and machinery held in stock on the day immediately preceding the date on which registration of the Applicant has been cancelled under the CGST and SGST/UTGST Acts and in respect of which the tax invoices are not available but input tax credit is required to be reversed and paid back to Government under section 29(5) of the CGST and SGST/UTGST Acts, are fairly presented in all material respects and in conformity with the books of accounts and other relevant documents/ records maintained under the CGST Act and the SGST/UTGST Acts.
- The description, quantity, value and rate of GST of the inputs, inputs contained in semi-finished or finished goods held in stock and capital goods / plant machinery as on ……………, (that is the day immediately preceding the date on which registration of the Applicant under the CGST and SGST/UTGST Acts, has been cancelled) is based on the calculations and confirmation done by the Management and verified by us, are in accordance with the books of accounts and other relevant records and documents maintained by the Applicant, where input tax credit is available to the Applicant. According to the Management certificate, the value of inputs, inputs contained in semi-finished or finished goods and capital goods or plant and machinery is an estimated price of such goods which is based on their prevailing market price as on ……………………
- These estimates have been worked out by Management as per the requirement of section 29(5) of CGST and SGST/UTGST Acts read with rule 44(3) of CGST and SGST/UTGST Rules, 2017 and we have reviewed their assumptions and workings. Based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that assumptions do not provide a reasonable basis for the estimate. Actual results are likely to be different from the estimate since anticipated events might not occur as expected and the variation might be material.
- The stocks have not been physically verified. Reliance has been placed on the declaration given by Applicant in respect of quantity of stocks held by it as on __________, whose invoices are not available with it.
Restriction on Use
- This certificate is addressed and provided to the ……..[Name of the Applicant] solely for the purpose of submission to (Name of the Authority) pursuant to the requirements of Section 29(5) of the CGST and SGST/UTGST Acts read with Rule 44(5) of the CGST / SGST Rules, 2017 and should not be used by any other person or for any other purpose. Accordingly, we do not accept or assume any liability or duty of care for any other purpose or to any other person to whom this certificate is shown or into whose hands it may come without our prior consent in writing.
For________________
Chartered Accountants
_____________________
PARTNER
Firm
Registration Number:
Registration Number:
Membership
Number:
Number:
UDIN:
Annexure – A
Appendix A to Certificate issued under the State Goods and Services Tax Act, 2017 (in short “SGST Act”) and the Central Goods and Services Tax Act, 2017 (in short “CGST Act”) in terms of section 18(4) of the said Acts
Summary of stock of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on which input tax credit is required to be paid under section 29(5)-whose invoices are not available
Check points for the Chartered Accountants –
i. This certificate is required to be issued only if the tax invoices related to the inputs held in stock, inputs contained in semi-finished or finished goods held in stock and on capital goods are not available (Rule 44 (3) and Rule 44(5) of the CGST / SGST Rules, 2017). It may be noted that the above said Rule 44 (3) stipulates issuance of a Certificate only in cases of non-possession of invoices. The said Rule does not speak of issuance of Certificate if the registered person is in possession of the relevant tax invoices.
ii. Verify registration particulars with the Registration Certificate. Check whether declaration in Form GSTR-10 is filed by the tax payer on GST portal declaring the above amounts in the respective columns.
iii. Check computation of input tax credit to be reversed by multiplying the effective rate of tax specified under Notification 1/2017-CT (Rate) dated 28.06.2017 as amended from time to time with the estimated value of inputs or input contained in semi-finished or finished goods.
iv. Ensure that the amount is determined separately for input tax credit of Central Tax, State Tax, Union Territory Tax and Integrated Tax and verified / reconciled with the ledger balances.
v. In case there are stock-in-transits as on the specified date of eligibility of credits, appropriate treatment to be considered. (Note: Practical difficulty may arise to determine the credit amount and invoice-wise details of items consumed at WIP / semi-finished and finished goods stage. This may be computed by way of a fixed % and relevant assumptions / note may be included in the Certificate).
vi. Check reversal of credit in Electronic Credit Ledger and payment in Electronic Cash Ledger of the amount as specified in GSTR -10.
vii. This certificate is to be suitably modified wherever applicable. The names of the registered persons, dates, addresses etc. are only illustrative and needs to be modified in each case. Any resemblance to any person / place is purely unintentional.
viii. This certificate is to be issued in respect of a person whose registration has been cancelled under Section 29 of the CGST / SGST Acts, 2017.
ix. Ensure that the certificate issued is in accordance with the Guidance note on Reports and Certificates for special purpose issued by the ICAI.
x. Ensure that a letter of representation as well as engagement letter is taken from the management for the details and information provided by them.
Ensure that a declaration is taken from the Applicant with regard to non-availability of tax invoices and reasons for the same.
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