The Goods and Services Tax ( GST ) Annual Return GSTR-9 for FY 2023-24 has introduced significant changes, particularly in how Input Tax Credit ( ITC ) details are reported. If not handled correctly, these changes could lead to ITC mismatches.
The most important change for the FY 2023-24 GST annual return ( GSTR-9 ) concerns the sourcing of ITC details. Previously, Table 8A of GSTR-9 was auto-populated based on GSTR-2A, which displayed inward supplies. However, for the 2023-24 financial year, this table will now rely on GSTR-2B, a more accurate auto-populated statement reflecting supplier-uploaded invoices.
Complete Draft Replies of GST ITC Related Notices, Click Here
This shift to GSTR-2B as the source for ITC reporting ensures that the credit is reported based on actual utilisation, as seen in Table 6. While this change simplifies the process, it also introduces new challenges. Suppliers must now upload invoices promptly to ensure the accurate reflection of ITC in GSTR-9. Any delays in supplier uploads could cause discrepancies between ITC claims in GSTR-3B and the data in GSTR-2B, necessitating extra reconciliation efforts.
Table 8A, now populated with GSTR-2B data, may present a mismatch between the ITC claimed by the taxpayer and the auto-populated data. This discrepancy will be captured in Table 8D of GSTR-9, which is used for reconciliation.
Taxpayers are to closely monitor their GSTR-2B to ensure that all eligible ITC is accounted for before filing their return. If discrepancies are found, timely action is necessary to avoid complications during filing.
The deadline to file the GST annual return ( Form GSTR-9 ) for FY 2023-24 is December 31, 2024. However, not all taxpayers are required to file this return.
Taxpayers with a turnover of up to Rs 2 crore are exempt from filing GSTR-9. Additionally, certain categories of taxpayers, such as input service distributors, casual taxable persons, and non-resident taxable persons, are also not required to file.
Complete Draft Replies of GST ITC Related Notices, Click Here
For taxpayers with a turnover above Rs 2 crore, the GSTR-9C reconciliation statement must also be filed. While taxpayers with turnovers between Rs 2 crore and Rs 5 crore have the option to file GSTR-9C, it is mandatory for those with turnovers exceeding Rs 5 crore.
To avoid mismatches in the annual return, it is essential to ensure that all invoices are promptly uploaded by suppliers and that the GSTR-2B is thoroughly reviewed before filing. By staying on top of these updates, businesses can avoid costly errors in ITC reconciliation.
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