Changes in GST Annual Return Filing for FY 2023-24: What You Need to Know
The GST Annual Return for FY 2023-24 must be filed by December 31, 2024, by all eligible taxpayers, with certain exemptions. This year’s updates bring significant changes, making it crucial for taxpayers to ensure accuracy and avoid mismatches in Input Tax Credit (ITC), which could lead to compliance issues.
Key Changes in GSTR-9 for FY 2023-24
1. Table 8A ITC Sourcing Shift
- Previous Method: Data was populated using GSTR-2A.
- Current Method: Data will now rely on GSTR-2B, an auto-drafted ITC statement based on suppliers’ uploaded invoices in GSTR-1.
2. Reconciliation Adjustments
- Update: Table 8D will now reflect discrepancies between ITC claimed in GSTR-3B and auto-populated data in GSTR-2B.
- Impact: Late or missing invoices by suppliers could lead to mismatches, requiring careful reconciliation.
3. Table 6 ITC Reporting
- ITC reporting will now be based on actual utilization as per returns filed during the financial year.
Steps for Accurate Filing
1. Complete Monthly or Quarterly Returns First
- File all monthly or quarterly returns (under QRMP) accurately, as GSTR-9 is auto-populated from these submissions.
2. Monitor GSTR-2B Regularly
- Since ITC eligibility is based on GSTR-2B, ensure your suppliers upload invoices promptly to avoid discrepancies.
3. Reconcile ITC
- Cross-check ITC claimed in GSTR-3B with GSTR-2B regularly to resolve mismatches early.
Who Needs to File GSTR-9?
Mandatory Filing
- All GST-registered persons except:
- Input service distributors.
- Persons paying tax under TDS/TCS provisions.
- Casual taxable persons.
- Non-resident taxable persons.
Exemptions
- Turnover up to ₹2 crore: Filing GSTR-9 is optional.
- Turnover above ₹2 crore: Filing GSTR-9 is mandatory.
Additional Requirements for Turnover Above ₹5 Crore
Taxpayers with turnover exceeding ₹5 crore must file GSTR-9C, a reconciliation statement that is submitted along with GSTR-9.
- For turnover between ₹2 crore and ₹5 crore, filing GSTR-9C is optional.
Expert Insights
Tax professionals highlight the importance of adapting to these changes:
- Prompt Invoice Uploads: Suppliers must update invoices on time to ensure accurate ITC reflection in GSTR-2B.
- Close Monitoring: Regular review of GSTR-2B helps prevent ITC loss due to errors or omissions.
Conclusion
The shift from GSTR-2A to GSTR-2B for ITC sourcing highlights the need for effective data management. Taxpayers must work closely with suppliers, reconcile ITC proactively, and carefully review GSTR-2B to avoid mismatches. These steps will help ensure compliance and avoid penalties in the GST Annual Return filing process.
