CBIC Notifies Changes to GSTR-9, Expands ITC Reporting

New Delhi, September 18 – The Central Board of Indirect Taxes and Customs (CBIC) has notified some significant changes to the annual GST return form (GSTR-9). The purpose of the changes is to ensure that ITC (Input Tax Credit) reporting is more detailed and comprehensive. The amendments to the CGST rules were notified on 17th September and will be effective from 22nd September for annual returns filed for the fiscal year 2024-25.

All the businesses registered under GST with an aggregate turnover of more than ₹2 crore are required to file the GSTR-9 form.

Key Changes in GSTR-9

The revamped GSTR-9 structure introduces key changes to strengthen ITC reporting and compliance. It now mandates detailed disclosures such as reversals under Rules 37, 37A, 38, 42, and 43, as well as reclaims in subsequent years, and the reporting of transitional credits and import-related ITC.

Additionally, auto-populated mismatches are provided to aid reconciliation. These enhancements are aimed at improving transparency, ensuring accurate reporting, and creating a clear audit trail within the annual return, thereby facilitating better compliance monitoring and reducing discrepancies.

Compliance Impact

The compliance impact will be felt by both taxpayers and professionals who will now need to carry out deeper reconciliations of GSTR-3B, GSTR-2B, and financial accounts before filing. The new format necessitates a more data-driven compliance system, which in turn requires better preventive measures and disciplined documentation.

The new move will help in reducing litigations as discrepancies will be reduced and notices can be avoided (for routine ITC-related processes). Both companies and professionals will now need to wait for the updated forms before implementing the changes in practice.

Impact of the Changes

The suggested overhaul of the GSTR-9 is a major shift towards better and stricter compliance and transparency in the GST regime. It might mean more stringent and time-consuming reporting requirements for the taxpayers, but it will eventually reduce unnecessary disputes as the disclosures will improve.

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