The Goods and Service Tax Network (GSTN) has issued a new compliance wrinkle for taxpayers filing annual GST returns for FY 2024-25, with experts cautioning that Table 12B of GSTR-9C may become redundant due to structural changes introduced in GSTR-9.
Under the updated format, Table 7J of GSTR-9 for FY 2024-25 does not capture the Input Tax Credit (ITC) pertaining to FY 2023-24 but claimed or reversed in FY 2024-25. However, Table 12B of GSTR-9C continues to require reporting of ITC booked in an earlier financial year and claimed in the current year.
This means that while the ITC relating to FY 2023-24 and availed or reversed in FY 2024-25 must be disclosed in Table 12B, the same figures will not reflect in Table 12A or Table 12E of GSTR-9C due to the revised reporting mechanism. As a result, reconciliation challenges and reporting mismatches may surface.
Industry professionals have pointed out that such discrepancies are likely to reflect in Table 12F, which is designed to capture unreconciled ITC differences. In view of this, the GST framework advises taxpayers to record justification and supporting explanations for any variances in Table 13 of GSTR-9C.
With the annual filing window approaching, tax practitioners are urging the Central Board of Indirect Taxes and Customs (CBIC) to issue clarifications to ensure consistency and avoid litigation or departmental queries. Many believe that a circular addressing the implications of the modified ITC reflection mechanism would help streamline the reporting process for FY 2024-25.
As compliance complexity continues to evolve, taxpayers are advised to maintain detailed ITC records and prepare reconciliation statements meticulously to avoid mismatch-triggered notices.
Read More: GSTR-9 Clarification: No Reporting Needed in Table 7 for Reversal of FY 2023–24 ITC in FY 2024–25
