GSTR-9 Just Got Easier: New Rules for ITC Reporting in FY 2024–25
Thank you for reading this post, don't forget to subscribe!The GST Council has introduced a significant change to GSTR-9 reporting for the upcoming fiscal year, with a focus on simplifying Input Tax Credit (ITC) reconciliation. Taxpayers will now find it easier to track and report their ITC with the addition of new rows in Table 6.
What’s New in Table 6
- Bifurcation of ITC: The annual return form now includes two new rows, A1 and A2, within Table 6 under Part III. This allows taxpayers to clearly distinguish ITC carried forward from the preceding financial year.
- A1: Prior Year ITC: This new field is designed to capture the ITC of the prior financial year that you claimed in the current year. This amount is already part of the total ITC reported in Row 6A, but A1 now provides a dedicated space for this specific credit, excluding any credits that were reclaimed under Rules 37 and 37A.
- A2: Current Year ITC: This row will now automatically calculate the net ITC for the current year by subtracting the amount in A1 from the total ITC availed in 6A.
Why This Matters
This change aligns with the reconciliation logic that was previously handled through Tables 12 and 13. By creating a dedicated field in Table 6, the GST authorities are aiming to:
- Simplify Filing: The new structure makes the reporting process more straightforward and reduces the chance of manual errors.
- Improve Tracking: It provides a cleaner way to track year-to-year ITC claims, which is crucial for internal records and compliance.
- Streamline Audits: The clear bifurcation provides tax officers with a ready-made audit trail, which may help reduce the number of inquiries or assessments related to ITC mismatches.
In addition to these structural changes, the government has also made reporting in certain tables of GSTR-9 optional for small taxpayers in FY 2024–25, as part of a broader effort to ease compliance for businesses with simpler tax profiles.
Tax professionals advise taxpayers to continue maintaining meticulous, year-wise records to ensure accurate reporting and avoid any discrepancies in their credit claims.
