Common Errors and Solutions in GSTR-9

Every year, certain businesses are required to file the Certain businesses are required to file the GSTR-9 every year. However, filing the GSTR-9 can be challenging due to its complicated yearly reconciliations. Any errors during this process can result in discrepancies between the data sets and hamper the entire GSTR-9 filing process. Hence, it is crucial to understand the errors or mistakes and avoid compliance issues and unnecessary reconciliations. This article will explore the common errors in GSTR-9 and provide solutions to tackle them.

Common errors and mistakes in GSTR-9 

Let's first know about the errors and mistakes that are common during the GSTR-9 filing process and their consequences:

1. ITC mismatch between GSTR-2A/2B and GSTR-9

The Input Tax Credit (ITC) in GSTR 2A/2B, the auto-generated forms, don't align with the ITC declared in GSTR-9. This discrepancy often occurs due to the exclusion of certain invoices from GSTR-9 calculations based on the place of supply criteria, where invoices specifying the supplier's state instead of the recipient's state are omitted.

2. Lack of ITC bifurcation in GSTR-9

GSTR-9 requires businesses to break down all inputs, including input services and capital goods. However, many miss accounting for this detailed bifurcation, leading to challenges in gathering the required information for accurate reporting.

3. ITC not reflected in GSTR-2A/2B

Some taxpayers' GSTR-2A/2B won't reflect the claimed ITC as reported in GSTR-3B returns. This mismatch results in taxpayers receiving notices from tax authorities, creating challenges as the claimed credits are deemed ineligible.

4. Imported goods ITC reporting challenge

Reporting ITC for imported goods faces challenges as no separate fields exist for such claims. This absence makes it cumbersome for businesses to report this data accurately in GSTR-9, impacting the reconciliation process.

5. Overlap in Tables 6(B) and 6(H)

Tables 6(B) and 6(H) of GSTR-9 have overlapping figures, especially concerning inward supplies and input tax credits. Despite clarifications from the government, the confusion persists, requiring more illustrative examples for better understanding.

6. Table 4(F) filling confusion

Table 4(F) of GSTR-9, disclosing tax paid on advances without issued invoices, creates confusion. While it works well for monthly reporting, it becomes complex for annual consideration, necessitating data from both table 11(A) and 11(B) of GSTR-1.

8. Miscellaneous GSTR-9 issues

Additional issues include difficulties copying negative values, non-reflection of DRC-03 (tax payment) in the GST portal, inability to upload JSON files, challenges in filing under DRC-03 despite set-offs, occasional filing with multiple final PDF copies, and the tedious task of splitting/bifurcating the expense ledger on GSTR-9C. These diverse challenges contribute to the overall complexity of GSTR-9 filing.

Solutions to rectify and avoid errors or mistakes

Now that you know about the common errors and mistakes in GSTR-9, here are the solutions to avoid them: 

• For ITC mismatches, ensure declarations are made promptly, especially for supplies related to a specific financial year. 
• Bifurcate all inputs meticulously, seeking experts assistance for a thorough review. 
• Regularly cross-verify claimed credits against GSTR-2A/2B to avoid discrepancies. 
• Transparently report Reverse Charge Mechanism (RCM) liabilities. 
• Simplify confusion around Table 4F with regular cross-referencing and understanding clarifications. 
• Streamline the GSTR-9C uploading process by addressing technical glitches and improving portal functionality.

In conclusion, understanding the common errors in GSTR-9 filing is the first step towards a more efficient and accurate compliance process. By implementing the suggested solution, businesses can rectify existing mistakes and pave the way for smoother and error-free filings.

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