The GST Annual Return filing season is here, and it’s crucial for registered taxpayers to ensure accuracy to avoid potential mismatches, particularly with Input Tax Credit (ITC). The GST annual return for FY 2023-24 must be filed on or before December 31, 2024. However, there are several changes in the process that taxpayers need to understand to ensure smooth compliance.
GST-registered taxpayers, except those in specific categories, must file the annual return in Form GSTR-9. Exceptions include:
For taxpayers with a turnover of up to ₹2 crores, filing the GST annual return is not mandatory for FY 2023-24.
For businesses with turnovers exceeding ₹2 crores, the following rules apply:
The most notable update in the GSTR-9 relates to the sourcing of ITC details in Table 8A. Previously, ITC details in Table 8A were auto-populated using data from GSTR-2A, a statement of inward supplies. Starting from FY 2023-24, Table 8A will now derive its data from GSTR-2B.
GSTR-2B is an auto-drafted statement reflecting ITC based on invoices uploaded by suppliers in their respective GSTR-1 returns. This change is expected to:
Switching from GSTR-2A to GSTR-2B emphasizes the need for taxpayers to ensure their suppliers upload invoices promptly. Any delays or errors in supplier filings can lead to discrepancies, requiring additional effort to reconcile ITC claims.
Additionally, Table 6 of GSTR-9 will report ITC based on actual utilization for the financial year as per returns filed.
To avoid mismatches and ensure compliance:
The new approach of using GSTR-2B for auto-populating ITC in GSTR-9 aims to improve accuracy and reduce errors. However, it places greater responsibility on taxpayers to maintain data accuracy and coordinate with suppliers. Proactive monitoring and timely action will help ensure smooth filing for FY 2023-24.
For further assistance with GST compliance, consider reaching out to experts to navigate the complexities of annual return filing and reconciliation.
How can we help? *
