Difference in system computed tax liability shown in Table 4 & Table 9 of GSTR9??

This query is : Resolved

Sahil Sharma (Querist)
Follow

23 February 2022 Hello All,

There is difference between Tax Liability system computed in Table No. 4 of GSTR9 (Say ₹ 100) & the tax liability amount system computed in Table9 (Say ₹ 120). When i thoroughly check the GSTR3B i found out that during a particular month, my ITC claimed is ₹ 50 Table 4A(e) - all other ITC but reversal figure shown in Table 4B under reversal others is ₹ 70 and that difference is added to the output column in GSTR3B tax liability table. This difference of ₹ 20 in ITC is actually what is added in Table 9 of GSTR9. Please tell me what should be done whether i should change the figures and show only my output liability here or should i keep it unchanged?

(Note-My reason for changing is because in GSTR9C tax liability breakup table there would remain unreconciled difference in case i decide not to change it in GSTR9 Table 9 itself.)

Thanks.

Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
Follow

06 July 2024 If you have identified a discrepancy between the tax liability figures computed in Table 4 of GSTR9 and Table 9 of GSTR9, and this is due to an error in ITC claimed versus reversal in your GSTR3B, here’s how you should approach it:

1. **Correcting the Figures in GSTR9**:
- Since you have identified that the ITC claimed in GSTR3B (₹50) and the reversal amount (₹70) are causing a discrepancy of ₹20 in Table 4 of GSTR9, you should correct this in Table 9 of GSTR9.
- Table 9 of GSTR9 reflects the annual summary of tax payments made and tax liabilities declared in GSTR3B. Therefore, it should reflect the correct tax liability after considering the actual ITC claimed and reversed as per your GSTR3B.

2. **Reasons for Changing Figures**:
- Changing the figures in Table 9 of GSTR9 to reflect the corrected tax liability ensures that your GSTR9C (reconciliation statement) aligns with your actual tax payments and liabilities declared in GSTR3B throughout the year.
- Leaving the figures unchanged could lead to unreconciled differences in GSTR9C, which may require additional explanations or adjustments.

3. **Steps to Take**:
- Amend Table 9 of GSTR9 to reflect the corrected tax liability amount after considering the actual ITC claimed (₹50) and the reversal amount (₹70).
- Ensure that all adjustments are accurately reflected in your GSTR9 so that the total tax liability matches the sum of tax payments made during the year.

4. **Documentation and Reconciliation**:
- Maintain proper documentation supporting the corrections made in GSTR9.
- Reconcile the figures in GSTR9C to explain any differences and ensure clarity in your annual GST return filing.

5. **Consultation with Tax Professionals**:
- If you are uncertain about making changes or need further clarification, consider consulting with a tax professional who can provide specific guidance based on your financial records and GST filings.

By correcting the figures in Table 9 of GSTR9 to reflect the actual tax liability after adjusting for ITC claimed and reversed, you ensure compliance with GST regulations and accurate reporting in your annual return.