GSTR-9 FY 2024-25: New Table 6(A1) Explained for Reporting Previous Year’s ITC

As a Chartered Accountant, every year during the annual return filing season, one particular issue has been a constant source of trouble for both taxpayers and professionals alike. The question was always the same: “Where do we show the Input Tax Credit (ITC) that belongs to last financial year but was claimed in the current year’s GSTR-3B?” This seemingly simple question led to a great deal of confusion, data mismatches, and, unfortunately, a barrage of departmental notices.

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Finally, it seems the GST Council has heeded the prayers of the taxpayer community. For the financial year 2024-25, a small but incredibly significant change has been introduced in the GSTR-9 form that promises to resolve this long-standing issue. Let’s break down this beneficial change in simple terms.

The Problem of the Past: A Recipe for Mismatch.

Under the GST law, a taxpayer can claim ITC for an invoice of a particular financial year up to the 30th of November of the following financial year. For example, if you received an invoice dated March 15, 2024, but you accounted for it and claimed the ITC in your GSTR-3B for April 2024, you were well within your rights.

The problem arose when filing the GSTR-9 (the annual return). The form required a consolidated summary of the entire year.

• Table 6(A) of GSTR-9 would be auto-populated with the total ITC you claimed in your GSTR-3B returns for the current financial year.
• However, Table 8(A) gets its data from your GSTR-2A/2B, which shows invoices pertaining only to that specific financial year.

This created an immediate mismatch. Your GSTR-3B figure in Table 6(A) included ITC from the previous year, but your GSTR-2A/2B data in Table 8(A) did not. There was no specific column to declare “This portion of my ITC belongs to the previous year.” Taxpayers were left to use other tables or provide manual reconciliations, which were often overlooked by the system, triggering automated notices for the difference. This led to unnecessary follow-ups, explanations, and potential litigation, causing a major compliance headache.

The Solution: The New Segregation in Table 6.

For the annual return of FY 2024-25, the government has introduced a new sub-field under Table 6, bringing much-needed clarity. The structure, as seen in the updated forms, is as follows:

• (A) Total amount of input tax credit availed through FORM GSTR-3B: This remains the sum total of ITC claimed in Table 4A of all GSTR-3B returns filed during the financial year.
• (A1) ITC of any preceding financial year availed in the financial year: This is the new, game-changing column. Here, you will specifically declare the amount of ITC that you claimed in the current year (e.g., FY 2024-25) but which pertains to invoices of the previous financial year (e.g., FY 2023-24).
• (A2) Net ITC of the financial year (A-A1): This is a calculated field that shows the net ITC for the current financial year after removing the previous year’s credit.

This simple segregation allows for a perfect reconciliation. Now, the department’s systems can easily understand why there might be a difference and not flag it as a mismatch.

How to Use the New Columns: A Step-by-Step Guide.

Let’s walk through this with a simple example. Suppose you are filing the GSTR-9 for the Financial Year 2024-25.

Step 1: Calculate Total ITC Availed
First, sum up the total ITC you have claimed in your GSTR-3B returns from April 2024 to March 2025.
– Let’s say the total ITC is ₹15,00,000.
– This amount will be reported in Table 6(A).

Step 2: Identify and Report Previous Year’s ITC
Now, go through your ITC register for the year. Identify the credit that was claimed between April 2024 and March 2025 but was for invoices dated in FY 2023-24 (i.e., before March 31, 2024).
– Let’s say you find that ITC worth ₹1,20,000 belongs to FY 2023-24 invoices.
– This amount of ₹1,20,000 will be reported in the new Table 6(A1).

Step 3: Determine the Net ITC for the Current Year
The form will automatically calculate the net ITC for the current financial year.
– Net ITC (A2) = Total ITC (A) – Previous Year’s ITC (A1)
– ₹13,80,000 = ₹15,00,000 – ₹1,20,000
– This amount of ₹13,80,000 will be reflected in Table 6(A2).

By doing this, you are providing a clear and transparent declaration to the department, explaining the composition of your total ITC claim for the year.

The Benefits: Why This is a Big Win for Businesses.

• Ends Ambiguity: It provides a designated field for a common transaction, ending years of confusion.
• Reduces Notices: This will drastically cut down on automated mismatch notices related to Table 6 and Table 8 of GSTR-9.
• Saves Time and Money: Less time will be spent on preparing manual reconciliations, replying to notices, and engaging in potential litigation.
• Improves Ease of Compliance: It makes the GSTR-9 filing process smoother and more logical for both taxpayers and their consultants.
• Increases Transparency: It provides a clearer picture to tax authorities during assessments and audits, leading to faster and more efficient proceedings.

In conclusion, the introduction of Table 6(A1) is a very positive and welcome step. It shows that the government is responsive to the ground-level difficulties faced by taxpayers and is working towards making GST compliance more streamlined and logical. For the upcoming GSTR-9 filing for FY 2024-25, businesses and accountants should take careful note of this change to ensure accurate and hassle-free filing.

Official Reference: For the latest updates, forms, and instructions, taxpayers are advised to visit the official Goods and Services Tax portal: https://www.gst.gov.in/

Disclaimer: The information provided in this article is for general informational purposes only and is based on the law and regulations in effect at the time of writing. It does not constitute professional tax advice. Readers are advised to consult with a qualified tax professional or Chartered Accountant for advice tailored to their specific situation. The author and publisher are not responsible for any loss or damage arising from reliance on the information contained herein.

C.K. Gupta

Hello, I am C.K. Gupta Founder of Taxgst.in, a seasoned finance professional with a Master of Commerce degree and over 20 years of experience in accounting and finance. My extensive career has been dedicated to mastering the intricacies of financial management, tax consultancy, and strategic planning. Throughout my professional journey, I have honed my skills in financial analysis, tax planning, and compliance, ensuring that all practices adhere to the latest financial regulations. My expertise also extends to auditing, where I focus on maintaining accuracy and integrity in financial reporting. I am passionate about using my knowledge to provide insightful and reliable financial advice, helping businesses optimize their financial strategies and achieve their economic goals. At Taxgst.in, I aim to share valuable insights that assist our readers in navigating the complex world of taxes and finance with ease.