Common Errors and Solutions in GSTR-9

Every year, certain businesses are required to file the GSTR-9. But, GSTR-9 can be a tough nut to crack due to its complicated nature. Staying informed about the errors or mistakes during the filing process can help avoid compliance issues and unnecessary reconciliation. In this article, we 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 credits (ITC) in GSTR 2A/2B, the auto-generated forms, don't align with what's 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. Unreflected Input Tax Credits in GSTR-2A/2B

Some taxpayers' GSTR-2A/2B fail to display all 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 input tax credits 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. Difficulties in HSN Summary Reporting 

Businesses with a turnover above a specified threshold have the option to report HSN summary information for both incoming and outgoing supplies. Many taxpayers who haven't maintained such records before face the difficult task of obtaining and reporting these details.

7. 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 issues like mismatched input tax credits, ensure declarations are made promptly, especially for supplies related to a specific financial year. 
• Bifurcate all inputs meticulously, seeking auditor assistance for a thorough review. 
• Regularly cross-verify claimed credits against GSTR-2A to avoid discrepancies. 
• Transparently report Reverse Charge Mechanism (RCM) liabilities and maintain detailed records for efficient HSN summary reporting. 
• 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.

Also Read:
What Happens if GSTR-9 is Wrongly Filed? Can GSTR-9 Be Revised After Filing?
Schema Validation Failed in GSTR-9: Reasons and Solutions
Run Time Error 13 in GSTR-9C Offline Tool: Reasons and Solutions
RET00009 Error in GSTR-9: Reasons and Solutions
Is HSN Wise Summary Mandatory in GSTR-9?