GSTN enables taxpayers to know Input Tax Credit (ITC) eligibility at invoice level while filing Annual Return

– Taxpayers are enabled to download of invoices which account for ITC in Table 8A of Form GSTR-9, Annual Return

– Reasons for non-inclusion of an invoice in ITC value can be found out (difference between GSTR-2A and GSTR-9 can be understood better)

– GSTR-9 is an Annual Return mandated for Normal Taxpayers having turnover of over Rs. 2 crore.

New Delhi, 18thAugust 2020: Goods and Services Tax Network (GSTN), the IT backbone of GST system in India has rolled over an important functionality today which will help GST taxpayers know their exact eligibility of input tax credit (ITC) flowing in their Annual Return and thereby filing the annual return, i.e. GSTR-9 more conveniently.

Till now, the system used to compute eligible ITC based on suppliers’ GSTR-1 and due to the governing rules like those filed till last date etc, the break-up at invoice level was not provided. Taxpayers used to raise query on computation of ITC. To bring the entire computation to taxpayer by way of showing each and every invoice filed by the suppliers and showing eligibility against each, this functionality has been developed.

For this functionality, a new tab ‘Download Table-8A details’ has been introduced on the GSTR-9 dashboard of the GST portal from Financial Year 2018-19 onwards.

Download Table 8A Document Details

(Navigate to Services > Returns > Annual Return > Form GSTR-9 (Prepare Online) >Download Table 8A Document Details)

How will this functionality help taxpayers?

  • It’s a major relief for Annual Return filers who used to report that figures of Input Tax Credit (ITC), as pre-populated in Table-8A of Form GSTR-9, do not match with the figures as appearing in their Form GSTR-2A (Form GSTR-2A is a dynamic form which shows saved as well as filed invoices of suppliers. Even those invoices filed after last day for inclusion in Annual Returns, are also shown in GSTR-2A. Such invoices are not eligible for being counted for ITC).
  • The taxpayers will now be able to know their ITC at the invoice level and reconcile the values appearing in Table-8A of Form GSTR-9 while filing their annual return.
  • It will facilitate taxpayers to download document-wise details of Table-8A of Form GSTR-9, from the GST portal in excel format and view the entire Table-8A to know eligibility against each invoice.
  • The excel document has 5 sheets contain the following information:
Sheet 1 Sheet 2 Sheet 3 Sheet 4 Sheet 5
Instructions on how to use the functionality B2B invoices uploaded by suppliers Data on B2B amendments Details of Credit/Debit Note Amendments to Credit/Debit Notes

Invoice not eligible for ITC! Know why?

In case the invoice is not found eligible for ITC, reasons are given against the same, as depicted in the table below. This is available in first sheet of excel downloaded from the portal.

Reason Details of the reason
Reverse charge document When the supplier has filed the document in GSTR-1 indicating the supply as reverse charge.
POS lies in supplier’s State When the supplier’s State code and POS lie in the same State, but recipient’s State is different.
GSTIN is amended When the supplier has amended the GSTIN, Credit shall be available to amended GSTIN only.
Taxpayer opted for composition scheme When the document date is during the period when supplier was under the composition scheme.
Invoice date is after supplier’s cancellation date When the document date is after the effective date of cancellation of supplier.

Apart from this, there could be one more scenario wherein the taxpayer will not be able to avail ITC while filing of Annual Return GSTR-9.  If the supplier has filed GSTR-1 or GSTR-5 after the cut-off date, it will not be considered for availability of ITC, though the ITC details might be showing in his GSTR-2A. The cut-off date, for FY-2018-19, is 31st October 2019.

Scenario Reason
ITC showing in GSTR-2A but not available in Table-8A of GSTR-9 for FY 2018-19 Check if your supplier has filed GSTR-1 or GSTR-5 after the cut-off date, 31st October 2019.

The number of Normal Taxpayers stands at 1.03 crore out of which around 14 lakh taxpayers are mandated to file Annual Return GSTR-9 as their Annual Aggregate Turnover was more than Rs. 2 Crores.

More Under Goods and Services Tax

3 Comments

  1. sanjay sohane says:

    GOVT HAS EXTENDED THE DUE DATE OF FILING GSTR1 AND GSTR3B FOR FY 2017-18 TO 2019-20 , THOUGH WITH LATE FEES. SUPPLIERS ARE NOW FILING THEIR RETURNS . NOW AS STATED THE FIGURES IN 8A IS REFLECTED AS OF CUTT OFF DATE WHICH WAS EXPIRED . BUT THE DUE DATE HAS BEEN EXTENDED . PLEASE CONFIRM ABOUT THE MODIFYED FIGURES OF 8A IN CONTEST OF SUCH LATE PERMISSION GIVEN BY GOVT . AND AVAILABILITY OF ITC ON SUCH TO PURCHASER , BECAUSE PURCHASER HAS NO FAULT AND SHOULD NOT BE PENALISED

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