Indore News: Changes In GST Annual Returns Will Make Reconciliation Of ITC Easier, Says GST Experts

Indore (Madhya Pradesh): The changes made in the filing of GST Annual Returns make the reconciliation of Input Tax Credit (ITC) easier. This will be a great relief for the tax payers. Thus, taxpayers must file GSTR 9 in addition to GSTR-1 and 3B if their turnover exceeds Rs 2 crore. Additionally, GSTR 9C must be filed, reconciling the transactions shown in the annual return with the books.

GST experts expressed these thoughts in a workshop organized by the Tax Practitioners Association Indore, and the Indore branch of the Chartered Accountants of India here on Friday to understand the changes made to the annual return form for the year 2024-25. The objective was also to discuss the precautions and preparation for filing the return.

Key speaker CA Krishna Garg explained that the annual return primarily provides information on the year's turnover, ITC reconciliation, and reverse charge tax payments. Filing this return is voluntary for turnovers under Rs 2 cr. The deadline for filing the annual return for the year 2024-25 is December 31st. Filing the return after that date will also result in a penalty for taxpayers. He stated that a separate provision has been made in Table 6 to display credits taken in previous years. This will facilitate year-wise ITC matching.

Following the changes made in 2022, taxpayers' eligibility for input credit is now determined solely by the GSTR 2B available on the portal. Information about such credits is provided on the portal for matching in Table 8 of the annual return.

The government has clarified that this table will only reflect information related to transactions in the year 2024-25. It means that if input credits from the year 23-24 are reflected in the year 2024-25, they will still be considered as belonging to the previous year and will be reflected as credits claimed in the previous year in Table 6.

Similarly, information regarding ITC reversals has been further expanded in Table 7.

After filing annual return no option to revise it

CA Sunil P. Jain stated that filing GSTR 9-C is not mandatory for turnovers up to Rs 5 crore. He explained that providing incomplete information in GSTR 9 significantly increases the likelihood of departmental action. When filing the return, the books and returns should be fully reconciled and if any liability arises, it should be submitted along with the tax.

Otherwise, if the department finds an error, a penalty will be imposed. Starting this year, demands can also be paid from the credit ledger as a result of GSTR 9. This year, transactions conducted by e-commerce operators will be required to be separately disclosed in the return. Taxpayers with a turnover of more than Rs 5 cr. will be considered to have filed their annual return only if they file GSTR 9C, otherwise, a late fee will be charged.