The Goods and Service Tax Network (GSTN) has clarified that annual return reporting under GST has brought relief to taxpayers struggling with disclosures related to ineligible Input Tax Credit (ITC) of FY 2023–24 that was later availed and reversed in FY 2024–25.
As per the clarification, ITC pertaining to FY 2023–24 but availed belatedly in FY 2024–25 must be reported only in Table 6A1 of GSTR-9 for FY 2024–25. This aligns with the return instructions which require reporting of any prior-year ITC claimed during the current year in Table 6.
However, the department has categorically stated that while such ITC may have been reversed in FY 2024–25 through Table 4B(1) of GSTR-3B, no separate disclosure is required in Table 7 of GSTR-9 for FY 2024–25.
Table 7 is meant exclusively for reporting ITC reversals pertaining to the current financial year only.
Officials further clarified that Tables 6B to 6H and 7A to 7H must capture only the ITC movement relevant to FY 2024–25 and not earlier years. Therefore, the reversal entry linked to FY 2023–24 will not form part of the reversal section of the annual return for FY 2024–25.
Key Takeaway for Taxpayers
- Report prior-year ITC availed in FY 2024–25: Table 6A1
- No reporting of corresponding reversal in Table 7 of GSTR-9
- Only current year ITC activity belongs in Tables 6B–6H and 7A–7H
This clarification eliminates confusion around dual-year credit adjustments and ensures simplified disclosure for annual GST compliances.
