07 July 2024
When preparing GSTR-9 and GSTR-9C, it is crucial to reconcile the Input Tax Credit (ITC) claimed in the books of accounts with the ITC available as per GSTR-2A. Here's a step-by-step guide on how to report the difference of ITC as per GSTR-2A in Table 8 of GSTR-9 and in GSTR-9C:
### Step-by-Step Guide
#### 1. Understand Table 8 of GSTR-9 Table 8 of GSTR-9 deals with the reconciliation of ITC. The table is divided into several parts, but for our purpose, the relevant sections are:
- **Table 8A**: ITC as per GSTR-2A. - **Table 8B**: ITC as per GSTR-3B (auto-populated). - **Table 8C**: ITC on inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs). - **Table 8D**: Difference (8A - (8B + 8C)). - **Table 8E**: ITC available but not availed. - **Table 8F**: ITC available but ineligible. - **Table 8G**: Total ITC to be lapsed (Sum of 8E + 8F).
#### 2. Reconciliation of ITC
To reconcile the ITC as per GSTR-2A and GSTR-3B, you need to follow these steps:
1. **Download GSTR-2A**: Download the GSTR-2A for the relevant financial year from the GST portal. 2. **Compare with Books**: Compare the ITC available in GSTR-2A with the ITC claimed in GSTR-3B and as per your books of accounts. 3. **Identify Differences**: Identify the differences between the ITC available in GSTR-2A and the ITC claimed in GSTR-3B.
#### 3. Report in Table 8 of GSTR-9
- **Table 8A**: This is auto-populated with the ITC as per GSTR-2A. - **Table 8B**: This is auto-populated with the ITC as per GSTR-3B. - **Table 8C**: Enter any ITC on inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs). - **Table 8D**: This is the difference between the ITC as per GSTR-2A and the ITC claimed in GSTR-3B plus any inward supplies. - **Table 8E and 8F**: Report any ITC that was available but not availed, and ITC that was ineligible, respectively. - **Table 8G**: This is the total ITC to be lapsed (the sum of 8E and 8F).
#### 4. Reporting in GSTR-9C
GSTR-9C is the reconciliation statement and certification that requires detailed reconciliation of ITC between the books of accounts and the GST returns. Here's how to report the differences:
1. **Part IV - Table 12**: This table deals with reconciliation of ITC. - **Table 12A**: ITC availed as per audited financial statements. - **Table 12B**: ITC booked in earlier Financial Years claimed in the current Financial Year. - **Table 12C**: ITC booked in the current Financial Year to be claimed in subsequent Financial Years. - **Table 12D**: ITC availed as per audited financial statements or books of accounts (12A + 12B - 12C).
2. **Part V - Table 14**: Reconciliation of ITC declared in annual return (GSTR-9) with ITC availed on expenses as per audited financial statements or books of accounts: - **Table 14T**: Total ITC claimed (auto-populated). - **Table 14U**: ITC as per GSTR-9 (Part IV of the form). - **Table 14V**: Unreconciled ITC.
3. **Auditor's Recommendation**: The auditor should provide observations and recommendations for the unreconciled differences.
### Practical Steps
1. **Gather Data**: Collect all the relevant data from GSTR-2A, GSTR-3B, and your books of accounts. 2. **Reconcile**: Perform a detailed reconciliation of ITC as per GSTR-2A and GSTR-3B. 3. **Document Differences**: Clearly document any differences identified. 4. **Report Accurately**: Fill in the relevant sections of Table 8 of GSTR-9 and the appropriate tables in GSTR-9C. 5. **Auditor's Certification**: Ensure the auditor reviews and certifies the reconciliation in GSTR-9C.
### Example
Suppose the ITC as per GSTR-2A is ₹10,00,000, but the ITC claimed in GSTR-3B is ₹9,50,000, and there are no other adjustments:
- **Table 8A**: ₹10,00,000 (auto-populated). - **Table 8B**: ₹9,50,000 (auto-populated). - **Table 8C**: ₹0 (if no inward supplies from SEZs or others). - **Table 8D**: ₹50,000 (auto-calculated as 8A - (8B + 8C)). - **Table 8E and 8F**: Enter any available but not availed or ineligible ITC if applicable. - **Table 8G**: Total ITC to be lapsed, if applicable.
In GSTR-9C, reconcile these amounts and ensure any differences are appropriately explained and certified by the auditor.
By following these steps, you can accurately report the difference of ITC as per GSTR-2A in Table 8 of GSTR-9 and in GSTR-9C.
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