Understanding the Difference Between Table 8A and 8C in GSTR-9 for FY 2023-24

The Goods and Services Tax (GST) system is always evolving, and taxpayers need to stay updated. For FY 2023-24, changes in the way Input Tax Credit (ITC) is reported in Table 8A and Table 8C of GSTR-9 have caused confusion for many businesses. This guide explains these changes and offers practical solutions to common issues.

Key Updates for FY 2023-24

1.Table 8A Auto-Population:
Starting this year, ITC values in Table 8A are automatically filled from GSTR-2B instead of GSTR-2A. This change provides a more accurate record of available credits.

2.Manual Reporting in Table 8C:
Taxpayers need to manually report ITC for inward supplies received in FY 2023-24 but claimed in FY 2024-25 within the allowed time.

These updates, introduced by Notification No. 12/2024 and Notification No. 20/2024, aim to streamline ITC reporting. However, they can also lead to discrepancies between the two tables, requiring careful attention.

Common Scenarios and How to Handle Them

Below are some typical issues taxpayers face and the recommended actions:

1. Late Reporting by the Supplier

• Scenario: A supplier reports an invoice dated FY 2023-24 in GSTR-1 after March 2024, which excludes it from Table 8A.
• Solution: Record this ITC in Table 8C and Table 13, following the official guidelines.

2. ITC Reversed Due to Non-Payment

• Scenario: ITC is claimed in FY 2023-24 but reversed because the supplier wasn’t paid within 180 days. Later, this ITC is reclaimed in FY 2024-25.
• Solution: Report the reclaimed ITC in Table 6H of GSTR-9 for FY 2024-25. It should not be included in Table 8C or Table 13 of FY 2023-24.

3. Goods Received After FY 2023-24

• Scenario: ITC is claimed and reversed in FY 2023-24 due to delayed receipt of goods. It is reclaimed in FY 2024-25.
• Solution: Add the reclaimed ITC to Table 8C and Table 13 for FY 2023-24, as it pertains to this financial year.

4. Previous Year’s Invoices in Current Table 8A

• Scenario: An invoice from FY 2022-23 appears in Table 8A of FY 2023-24 because the supplier reported it late.
• Solution: Since this ITC belongs to FY 2022-23, exclude it from Table 8C and Table 13 for FY 2023-24.

5. ITC Claimed, Reversed, and Reclaimed Within FY 2023-24

• Scenario: The taxpayer claims ITC, reverses it, and then reclaims it—all within the same year.
• Solution: Report the ITC in Table 6H only. Avoid duplicating the entry in Table 6B or reversal details in Table 7.

Why These Changes Matter

These updates improve transparency in ITC reporting. By following the guidelines, businesses can:

1. Avoid Compliance Risks: Accurate reporting minimizes the risk of penalties.
2. Simplify Audits: Clear and consistent entries make reconciliation easier for both taxpayers and auditors.

Tips for Taxpayers

To ensure compliance, follow these steps:

• Reconcile Data Regularly: Compare GSTR-2B with purchase records to detect mismatches early.
• Understand the Guidelines: Carefully read the instructions for Tables 8A, 8C, and 13.
• Seek Expert Help: If you’re unsure, consult a GST advisor to ensure accurate reporting.

Conclusion

The changes in GSTR-9 reporting for FY 2023-24 require businesses to be vigilant and proactive. By understanding the updates and aligning ITC entries correctly, you can avoid errors and streamline your compliance process. Staying informed is essential for navigating these changes smoothly.

For more information please refer below :

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This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event, RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.

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