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Input Tax Credit- for Cross-Year Invoices: How to Claim in GSTR-9

Dec 9, 2024

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Input Tax Credit- for Cross-Year Invoices: How to Claim in GSTR-9

Input Tax Credit (ITC) is one of the most powerful benefits of the GST system, allowing you to deduct the GST you pay on purchases from the GST you owe on sales. However, when it comes to cross-year invoices, things can get tricky. If you’re wondering how to report ITC for invoices spanning two financial years in GSTR-9, this blog is for you!

We’ll explain the process, highlight common challenges, and share actionable tips to help you avoid discrepancies. As auditors and tax consultants, we simplify GST compliance for businesses like yours


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Changes in Reporting Input Tax Credit in GSTR-9


Old vs. New Reporting: GSTR-2A vs. GSTR-2B


Until FY 2022-23, Table 8A of GSTR-9 relied on GSTR-2A, which updated dynamically based on supplier filings. Starting from FY 2023-24, Table 8A now fetches data from GSTR-2B, a static monthly return generated after the GSTR-1/IFF due date.


What does this mean for you?

  • Late-reported invoices for FY 2023-24 (uploaded in GSTR-2B from April 2024 to October 2024) won’t appear in Table 8A.

  • This causes discrepancies in Table 8D unless properly accounted for in Table 8C.


Reporting Late-Claimed ITC in Table 8C

Table 8C is your solution for reporting Input Tax Credit claimed late for FY 2023-24 invoices in FY 2024-25. For example:

  • An invoice dated March 2024 is uploaded late and appears in GSTR-2B for April 2024.

  • You claim ITC for this invoice in FY 2024-25.

  • Report this ITC in Table 8C to maintain accuracy.

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Common Issues in Reporting Input Tax Credit

  1. Late-Reported Invoices Not in Table 8AInvoices for FY 2023-24 uploaded from April to October 2024 appear in GSTR-2B but are excluded from Table 8A.

  2. Mismatch in Table 8DThe exclusion of late-reported invoices from Table 8A causes discrepancies in Table 8D, leading to reporting inconsistencies.

  3. Manual Reconciliation RequiredYou need to reconcile ITC in GSTR-3B with GSTR-2B and your purchase records to avoid mismatches.

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How to Avoid ITC Discrepancies

To ensure smooth reporting of Input Tax Credit in GSTR-9, follow these tips:

  1. Track GSTR-2B MonthlyMonitor GSTR-2B for the period April to October 2024 to identify late-reported invoices for FY 2023-24.

  2. Claim ITC on TimeEnsure ITC for cross-year invoices is claimed in GSTR-3B by November 30, 2024.