Major changes in GSTR-9 and GSTR-9C for Financial Year 2024-25

1. Detailed Information

Taxpayers now need to give more detailed information about their Input Tax Credit (ITC). They must separately report ITC reversals under Rules 37, 37A, 38, 42, and 43.

The main goal of this change is to make ITC reporting more accurate and ensure that all ITC claims and reversals are properly tracked and matched.

2. Updated Tables for Imports and Transitional Credits

Additional detailed information will now be reported for Input Tax Credit (ITC) on imports and for transitional credits. This update will help businesses to increase its transparency regarding imported goods.

3. Auto-Populated Data and Mismatch Handling

The new forms will automatically take data from GSTR-1, GSTR-3B, and GSTR-2B. Many sections will be pre-filled to reduce manual errors. But still taxpayers must carefully check and reconcile all information, as any inaccuracy may result in future inquiry by the department.

4. New Instructions and Rule References

The instructions for both GSTR-9 and GSTR-9C have been changed to make them simpler. Table references and compliance rules are now clearer, which will reduce mistakes in interpretation.

5. Late Fee and Interest Reporting Formalized

The updated instructions now require taxpayers to clearly disclose any late fees or interest payable under Section 47(2). Any delays in filing should be reported openly in the form.

Benefits of New Update

These updates are beneficial for taxpayers as they help to:

• Improve ITC reconciliation
• Reduce discrepancies
• Increase financial accuracy
• Provide Relief for small businesses
• Offer Flexibility in payment