GSTR-9 FY 2024-25: A Welcome Change in Table 6 Reporting to Enhance ITC Clarity
The Goods and Services Tax Network (GSTN) has introduced a significant and welcome change in the GSTR-9 annual return form for the financial year 2024-25. A key modification in Table 6 aims to bring greater clarity and transparency to the reporting of Input Tax Credit (ITC), a move that is expected to streamline the compliance process and reduce instances of scrutiny and litigation for taxpayers.
The GSTR-9 filing functionality for the financial year 2024-25 is now live on the GST portal, with the due date for filing set as December 31, 2025.
Segregation of ITC: A Step Towards Precision The most crucial update in the GSTR-9 for FY 2024-25 is the segregation of ITC claims within Table 6. This table, which deals with the details of ITC availed during the financial year, will now require taxpayers to separately report:
- ITC pertaining to the previous financial year (FY 2023-24) but claimed in the current financial year (FY 2024-25). * ITC pertaining to the current financial year (FY 2024-25). This bifurcation will be facilitated through the introduction of new sub-tables, likely Table 6A(1) and Table 6A(2), to distinctly capture these figures.
This change addresses a long-standing ambiguity where ITC availed in the current financial year, but related to the previous year, was clubbed together, often leading to reconciliation challenges and queries from the tax authorities. By providing for a clear and separate disclosure, the new format will enable a more accurate representation of ITC claims.
Enhanced Reporting of Reclaimed ITC Further modifications have been introduced in the reporting of reclaimed ITC. A new Table 6H will now be used to report ITC that was reversed in earlier periods and subsequently reclaimed during FY 2024-25. This will provide a clear audit trail for such transactions, distinguishing them from fresh ITC claims.
Implications for Taxpayers The changes in Table 6 are expected to have the following positive implications for taxpayers:
- Reduced Scrutiny and Notices: The clear segregation of ITC will minimize mismatches and discrepancies, leading to fewer notices from the tax department seeking clarification on ITC claims.
- Improved Reconciliation: The new format will simplify the reconciliation of ITC as per books of accounts with the figures reported in GSTR-3B and GSTR-2B.
- Enhanced Transparency: The detailed reporting will provide tax authorities with a clearer picture of ITC utilization, fostering greater transparency in the compliance process.
Other Key Changes in GSTR-9 for FY 2024-25 Alongside the modifications in Table 6, other notable changes in the GSTR-9 for FY 2024-25 include:
- Separate reporting for ITC availed on the import of goods in the next financial year.
- Mandatory reporting in Tables 12 and 13, which pertain to ITC of FY 2024-25 claimed and reversed in the GSTR-3B of FY 2025-26.
It is important to note that taxpayers with an aggregate annual turnover of up to ₹2 crore are exempt from filing the GSTR-9 annual return for FY 2024-25. For those with a turnover exceeding ₹5 crore, the filing of both GSTR-9 and the reconciliation statement in Form GSTR-9C remains mandatory.
Tax professionals and businesses are advised to familiarize themselves with these changes to ensure accurate and timely filing of their GSTR-9 for the financial year 2024-25.
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