The recent notifications from the Central Tax authorities have introduced significant changes in the way Input Tax Credit (ITC) is reported in the annual returns for the financial year 2023-24. This blog post aims to clarify the differences between Table 8A and Table 8C of Form GSTR-9, addressing common concerns and providing guidance on accurate reporting.
Key Changes in Reporting ITC
As per Notification No. 12/2024 Central Tax dated 10th July 2024, and Notification No. 20/2024-Central Tax dated 8th October 2024, the total credit available for inward supplies will now be auto-populated in Table 8A of Form GSTR-9 from GSTR-2B for FY 2023-24. Conversely, Table 8C of Form GSTR-9 requires manual entry of the total value of ITC on inward supplies received during the FY but availed in the next FY up to a specified period.
Common Issues and Reporting Guidelines
- Invoices Reported Late by Suppliers:
- Issue: Invoices dated FY 2023-24 but reported by suppliers after March 2024 are not auto-populated in Table 8A.
- Solution: Report such ITC in Table 8C and Table 13, as it pertains to FY 2023-24.
- ITC Reversal and Reclaim:
- Issue: ITC claimed in FY 2023-24 but reversed due to non-payment within 180 days, and then reclaimed in FY 2024-25.
- Solution: Report reclaimed ITC in Table 6H of GSTR-9 for FY 2024-25, not in Table 8C and Table 13 of FY 2023-24.
- Goods Not Received in FY 2023-24:
- Issue: ITC claimed and reversed in FY 2023-24 due to non-receipt of goods, then reclaimed in FY 2024-25.
- Solution: Report reclaimed ITC in Table 8C and Table 13 for FY 2023-24.
- Invoices from Previous FY:
- Issue: Invoices from FY 2022-23 appearing in Table 8A of GSTR-9 for FY 2023-24.
- Solution: Do not report these values in Table 8C and Table 13 for FY 2023-24, as they pertain to the previous FY.
- Reclaimed ITC within the Same FY:
- Issue: ITC claimed, reversed, and reclaimed within FY 2023-24.
- Solution: Report such ITC in one row only, as clarified by the CBIC press release dated 3rd July 2019.
Frequently Asked Questions (FAQ)
Q1: Why is there a mismatch between Table 8A and Table 8C? A1: The mismatch arises because Table 8A values are auto-populated from GSTR-2B, which may include transactions from the previous FY, while Table 8C requires manual entry of ITC availed in the next FY.
Q2: How should late-reported invoices be handled? A2: Late-reported invoices should be included in Table 8C and Table 13, as they are part of the ITC for the current FY.
Q3: What if ITC is reversed and reclaimed in different financial years? A3: Reclaimed ITC should be reported in the relevant tables of the FY in which it is reclaimed, not in the FY it was initially reversed.
Q4: Are there any specific instructions for reporting ITC of previous FYs? A4: Yes, ITC of previous FYs should not be reported in Table 8C and Table 13 of the current FY, as per the instructions provided in the notified form GSTR-9.
Q5: How to report ITC that is claimed, reversed, and reclaimed within the same FY? A5: Such ITC should be reported in one row only, avoiding duplication in the reversal section.
By following these guidelines, taxpayers can ensure accurate reporting of ITC in their annual returns, minimizing discrepancies and compliance issues. For further assistance, refer to the detailed instructions provided in the notified forms and relevant circulars.
