CBIC Advisory: Resolving ITC Mismatches in GSTR-9 for FY 2023-24
The Central Board of Indirect Taxes and Customs (CBIC) has issued an advisory to address concerns about discrepancies in Tables 8A and 8C of the Annual Return (GSTR-9) for FY 2023-24. The notification highlights key changes in reporting requirements and provides clarity on handling specific scenarios for input tax credit (ITC).
Key Changes and Background
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Auto-population from GSTR-2B:
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From FY 2023-24 onwards, Table 8A of GSTR-9 reflects ITC auto-populated from GSTR-2B instead of GSTR-2A, as per Notification No. 12/2024 and 20/2024.
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Table 8C now requires taxpayers to manually report ITC on inward supplies availed in subsequent financial years.
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Possible Mismatches:
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Since GSTR-2B reflects ITC based on the filing date of the supplier’s GSTR-1, delays or reporting adjustments can lead to inflated or reduced values in Table 8A, resulting in mismatches with Table 8C.
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Common Scenarios and Reporting Guidance
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Invoice Date in FY 2023-24, but Reported Late by Supplier:
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Issue: The supplier reports the invoice in GSTR-1 after March 2024, causing the ITC to appear in GSTR-2B of FY 2024-25.
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Resolution: Report such ITC in Table 8C and Table 13 of GSTR-9 for FY 2023-24, as per instructions.
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ITC Reversal Due to Non-Payment to Supplier:
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Issue: ITC is reversed in FY 2023-24 due to non-payment within 180 days but reclaimed in FY 2024-25 upon payment.
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Resolution: Report reclaimed ITC in Table 6H of GSTR-9 for FY 2024-25. Do not include it in Tables 8C or 13 of FY 2023-24.
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Goods Received Late for FY 2023-24 Invoice:
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Issue: ITC claimed and reversed in FY 2023-24 but reclaimed in FY 2024-25 upon receipt of goods.
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Resolution: Report the reclaimed ITC in Tables 8C and 13 of GSTR-9 for FY 2023-24.
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Invoice from FY 2022-23 Appearing in FY 2023-24 GSTR-2B:
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Issue: Supplier files GSTR-1 late, causing the invoice to appear in GSTR-2B of FY 2023-24.
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Resolution: Do not report this ITC in Tables 8C or 13 of GSTR-9 for FY 2023-24. This ITC pertains to FY 2022-23 and should have been addressed in that year’s return.
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ITC Claimed, Reversed, and Reclaimed Within FY 2023-24:
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Issue: ITC claimed, reversed, and reclaimed within the same financial year.
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Resolution: Report such ITC only once, either in Table 6B or Table 6H of GSTR-9, as clarified in the CBIC press release of July 3, 2019. Avoid duplicating this information in Table 7.
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Key Implications for Taxpayers
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Clarity in Reporting: Taxpayers must carefully review their ITC claims and adjustments to ensure accurate reporting under the revised guidelines.
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Reduced Mismatches: Following the prescribed methods will minimize discrepancies between Tables 8A and 8C, ensuring compliance and avoiding penalties.
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ITC Timeline Management: Proper tracking of ITC across financial years is critical for seamless reporting under the ALMM framework.
By addressing these scenarios systematically, taxpayers can align with the new requirements and ensure a smooth GSTR-9 filing process for FY 2023-24.