Important Updates for GSTR-9 and GSTR-9C Filing: Auto-population of Eligible ITC from GSTR-2B (Effective October 15, 2024)

Important Updates for GSTR-9 and GSTR-9C Filing

Important Updates for GSTR-9 and GSTR-9C Filing The GST landscape continues to evolve with new compliance measures aimed at making tax filing more efficient for taxpayers. As part of these updates, starting from FY 2023-24, the GST system will now auto-populate eligible Input Tax Credit (ITC) in GSTR-9, which significantly impacts how businesses approach their annual GST return filing.

Important Updates for GSTR-9 and GSTR-9C Filing From October 15, 2024, the changes will be live on the GST portal, and businesses should take immediate steps to understand and implement these updates for a smooth filing process. In this blog, we will explore in detail the new feature of auto-population of ITC, its implications for taxpayers, and the step-by-step process to validate and complete the GSTR-9 and GSTR-9C for FY 2023-24.

1. What is GSTR-9 and GSTR-9C?

Before diving into the changes, it’s important to revisit what GSTR-9 and GSTR-9C are:

• GSTR-9: It is an annual return to be filed by all registered taxpayers under GST, which includes details of all outward and inward supplies made or received during the financial year under various tax heads – CGST, SGST, and IGST. It consolidates the monthly/quarterly returns (GSTR-1, GSTR-3B, etc.) filed throughout the year. Important Updates for GSTR-9 and GSTR-9C Filing
• GSTR-9C: This is a reconciliation statement that compares the details provided in GSTR-9 with the taxpayer’s audited financial statements. GSTR-9C is applicable to businesses whose aggregate turnover exceeds the prescribed limit (currently ₹5 crore) and requires a certification by a Chartered Accountant or a Cost Accountant.

2. The New Auto-population Feature for ITC

Starting from FY 2023-24, the GST system will automatically populate the eligible Input Tax Credit (ITC) related to domestic supplies into Table 8A of GSTR-9. Important Updates for GSTR-9 and GSTR-9C Filing This information will be sourced directly from Table 3(I) of GSTR-2B.

Here’s what this means:

• Auto-populated ITC: The eligible ITC on domestic purchases, except those under reverse charge and imports, will be auto-filled by the GST system.
• Table 8A of GSTR-9: This table captures the details of ITC on inward supplies that are available to the taxpayer. The auto-population ensures that businesses do not miss out on claiming the right amount of ITC. Important Updates for GSTR-9 and GSTR-9C Filing
• Exclusions: The ITC for supplies under reverse charge and imports will not be part of the auto-population feature and will need to be entered manually.

This development is expected to reduce manual errors, save time, and improve accuracy for taxpayers, especially businesses with large volumes of transactions.

3. Progressive Rollout of the Validation Utility

Along with the auto-population feature, a validation utility will be released progressively by the GST portal to help taxpayers verify and validate the auto populated ITC data for April 2023 to March 2024. This validation utility is crucial for businesses to ensure that the auto populated figures are accurate and match with their actual records.

Taxpayers will need to:

• Review the autopopulated data: Check the figures auto-populated from GSTR-2B to ensure that they align with your records.
• Make necessary corrections: If discrepancies are found, adjustments can be made before submitting the final return.
• Complete the filing process: Once the validation process is complete, the GSTR-9 can be finalized and submitted.

This utility is designed to streamline the entire filing process, reducing the time and effort required to manually match data from multiple sources.

4. Impact on Taxpayers

The auto-population of ITC from GSTR-2B to GSTR-9 is a significant change, and it has several key implications:

• Reduced Manual Entry: Important Updates for GSTR-9 and GSTR-9C Filing One of the primary benefits is the reduction in manual work. Businesses no longer need to manually enter ITC details from their records into GSTR-9, minimizing the risk of human error.
• Time-Saving: Auto-population coupled with the validation utility will speed up the filing process, especially for large businesses handling a high volume of transactions.
• Enhanced Accuracy: As the data is being directly pulled from GSTR-2B, the chances of discrepancies are minimized. However, businesses must still verify the auto-populated data for any mismatches.
• Taxpayer Readiness: Taxpayers must ensure their records are accurate and that their GSTR-2B filings throughout the year are correct, as any errors in the monthly/quarterly returns could impact the accuracy of the auto-populated ITC in GSTR-9.

5. Steps to Validate and Complete GSTR-9 for FY 2023-24

Here is a step-by-step guide to help businesses complete their GSTR-9 filing for FY 2023-24 using the new auto-population feature:

https://www.gst.gov.in/

1. Login to the GST Portal: From October 15, 2024, taxpayers can log in to the GST portal to access the updated GSTR-9 form.
2. Check Auto-populated ITC in Table 8A: Important Updates for GSTR-9 and GSTR-9C Filing Navigate to Table 8A of GSTR-9, where the eligible ITC from domestic supplies (excluding reverse charge and imports) will be pre-filled from Table 3(I) of GSTR-2B.
3. Use the Validation Utility: Run the validation utility to cross-check the auto populated data against your own records. Ensure that the figures are accurate and consistent with your monthly returns.
4. Manually Enter Excluded ITC: For supplies under reverse charge and imports, you will need to manually input the eligible ITC into the relevant tables.
5. Review Other Sections: Complete the remaining sections of GSTR-9, including the summary of sales, tax payable, and taxes paid during the year.
6. Submit the GSTR-9 Return: Once you are confident that all details are accurate, submit your GSTR-9. Ensure that the return is submitted before the due date to avoid any penalties.
7. File GSTR-9C (if applicable): For businesses whose turnover exceeds ₹5 crore, ensure that you file the GSTR-9C along with the required reconciliation and certification by a professional.

6. Conclusion

Important Updates for GSTR-9 and GSTR-9C Filing The auto-population of ITC from GSTR-2B to GSTR-9 is a welcome change for taxpayers, especially businesses handling large volumes of transactions. By reducing the need for manual entry and providing a validation utility, the GST system aims to improve the accuracy and ease of the annual return filing process. However, it is crucial for businesses to remain vigilant, verify the auto populated data, and ensure that their monthly and quarterly returns are error-free throughout the financial year.

Taxpayers are advised to start preparing early for the FY 2023-24 GSTR-9 and GSTR-9C filing using this new feature to avoid any last-minute discrepancies or delays. Important Updates for GSTR-9 and GSTR-9C Filing With the GST portal now live with these changes from October 15, 2024, it’s time to take action and streamline your GST compliance.

For more updates and step-by-step guides on GST and taxation, stay tuned to our blog.

FAQs:

1. What is Table 8A of GSTR-9?
   Table 8A captures the ITC on inward supplies that are eligible for the taxpayer. For FY 2023-24, this will now be auto-populated from GSTR-2B. Important Updates for GSTR-9 and GSTR-9C Filing
2. Do I still need to file GSTR-9C?
   Yes, GSTR-9C must still be filed by businesses with a turnover exceeding ₹5 crore, along with the necessary reconciliation and certification. Important Updates for GSTR-9 and GSTR-9C Filing
3. What should I do if I find discrepancies in the auto-populated ITC?
   Use the validation utility provided by the GST portal to correct any discrepancies and ensure that your records match the data in GSTR-9.

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