1. What is Table 8A in GSTR-9
Table 8A in the annual Form GSTR-9 return contains details of the total input tax credit (ITC) available during the financial year from inward supplies. Inward supplies here includes all purchases made including services received from SEZs, but excludes imports and inward supplies liable to reverse charge.
2. Population of data in Table 8A
The ITC data will be auto-populated in this table on the basis of the Tables 3 and 5 of Form GSTR-2A, which in turn is auto-populated from the returns filed each month by the business entity’s suppliers in their Form GSTR-1. It also includes tax credits distributed by their non-resident suppliers in Form GSTR-5.
The GST portal gives the taxpayer the option to download the break-up of Table 8A data in an Excel file. Once the taxpayer logs in to his account, he needs to navigate to ‘Form GSTR-9 (Prepare Online)’, and then click on the button titled ‘Download Table 8A Document Details’. A zipped folder gets downloaded. Unzip the folder to extract the file. In cases where the data volume is huge, then different hyperlinks will be provided next to this button.
Taxpayers will be able to view the invoice-wise details and reconcile the same with their purchases register.
The document-wise details, which will reflect all documents such as B2B, B2BA, CDNR and CDNRA sorted in the Excel file of Table 8A will also reflect the following data:
- The period in which the document is reported in Form GSTR-2A.
- The filing date on which the invoice was uploaded in the supplier’s GSTR-1 return.
- If the invoice is not taken into account for Table 8A data, then the reason why it has not been considered.
- If the purchase is made through an e-commerce operator, then the GSTIN of the e-commerce operator will be displayed.
- The invoice type is also mentioned, such as ‘R’ for regular supplies, ‘SEZWP’ for SEZ supplies with payment of tax, ‘SEZWOP’ for SEZ supplies without payment of tax, etc.
3. Importance of reconciling data in Table 8A while filing GSTR-9
Table 8A in the GSTR-9 displays all the ITC data for a particular financial year. The accurate reporting of ITC data in Table 8A helps the taxpayer claim accurate ITC for that financial year. This table is not editable, which means that even if the ITC amounts reported are incorrect, the taxpayer cannot edit the same to enter the correct amounts. Besides, GSTR-9 once filed cannot be revised.
ITC reconciliation is an essential factor for taxpayers to reduce their tax liability to an optimal level. With the data given in Table 8A and the document-wise break-up, taxpayers can reconcile ITC on an invoice-wise level. This will also help the business entity’s auditor in reporting any mismatches in ITC while preparing the annual reconciliation statement in Form GSTR-9C.
Hence, Table 8A is very important from an ITC claim perspective. If the amount of ITC reported in Table 8A happens to be less than the ITC reported in Form GSTR-2A or the books of accounts, then the taxpayer will need to end up paying a tax liability due to no fault of his.
4. Reasons for the mismatch of data between Table 8A and GSTR-2A
There are many reasons why the data reported in Table 8A of the GSTR-9 does not match with the data reported in Form GSTR-2A. Some of them include-
- Invoices are saved or submitted in the supplier’s Form GSTR-1 but not yet filed. The GSTR-2A will display the status “Not yet filed” in case of such invoices.
- GSTR-1 filed by the supplier after the cut-off date. The cut-off date is the date after which no data will be considered for the Table 8A calculation.
- If the supplier has filed the invoice in his GSTR-1, but mistakenly reported that the supply is liable to reverse charge, the same will not be considered in Table 8A of the recipient.
- If the supplier has mistakenly amended the GSTIN of the recipient, then the ITC will be available only to the amended GSTIN.
- ITC will be excluded from Table 8A if the place of supply (POS) lies in the same state of the supplier and not the recipient. However, this data will still be displayed in the GSTR-2A.
- If the document date was within the period the taxpayer was under the Composition Scheme, then the ITC relating to those purchase invoices will not be considered in Table 8A.
Besides the above, there could also be ITC mismatches between the ITC reported each month in the GSTR-2A and the actual ITC recorded in the taxpayer’s books of accounts. The reasons for this could be:
- Inconsistency in the invoice number convention between the actual invoices and the data reported in the GSTR-2A.
- Mismatches in the invoice date format.
- Mismatches in the return period due to the invoice being issued in a particular month and reported/filed in a different month.
- Invoices raised to an incorrect GSTIN for the same vendor.
5. How ClearTax helps with our Advanced Reconciliation tool
ClearTax GST offers the most powerful Advanced Reconciliation Tool which comes with the intelligence to auto-identify and match entries, and assures that 100% ITC gets claimed. Some of the features of the Advanced Reconciliation Tool are:
- It comes with over 50 in-built validations which helps in the accurate ingestion of the purchase data from Tally, Excel and 100s of other ERPs.
- It enables the single click download of GSTR-2A data for the entire financial year, within just a few minutes, to facilitate easy reconciliation.
- It contains fuzzy logic-driven invoice-matching algorithms to maximize ITC claims.
- Both supplier-level and invoice-level mismatches can be identified, and corrective action can be taken during the reconciliation process.
- It helps in reconciling data 5X faster as compared to any other tool or software available for data reconciliation.
A taxpayer cannot claim ITC for a financial year at the time of filing GSTR-9, since the GSTR-9 form for a financial year does not typically go live before the September month’s GSTR-3B due date of the succeeding financial year. Hence, the September GSTR-3B of the succeeding year is the last chance for ITC claims.
Also, reconciling and claiming ITC at the time of filing the annual GSTR-9 return is a time-consuming process as it needs to be done for the entire financial year. With ClearTax GST, in addition to our Advanced Reconciliation Tool, we offer a host of intelligent reports so that frequent reconciliation can be carried out on a monthly or quarterly basis. This will reduce the burden at the end of the financial year.
These intelligent reports include-
- Health Check Report
The Health Check Report gives the taxpayer an overall summary of his business’ health in terms of the GST returns filing status, vendor compliance report, comparison between returns filed, and various insights and recommended actions to fill-in any gaps in the GST returns.
- GSTR-3B Vs. GSTR-1 Comparison Report
The GSTR-3B Vs. GSTR-1 Comparison Report gives the taxpayer details of differences between the GSTR-3B and GSTR-1 returns filed, in terms of outward tax, outward taxable value, supplies under RCM in both returns, etc. The taxpayer can take action at a monthly, quarterly, or annual level, by comparing data at a GSTIN-level or cumulatively at a PAN level.
- GSTR-3B Vs. GSTR-2A Comparison Report
GSTR-3B Vs. GSTR-2A is an essential exercise that businesses must carry out to not miss out on claiming ITC. It helps businesses not just in claiming accurate ITC, but also in reversing any excess ITC claimed. This will, in turn, help avoid any potential demand notices from the tax authorities.
ClearTax enables the easy reconciliation of data between Table 8A of the GSTR-9 and the purchase records. With our Advanced Reconciliation Tool, you can never miss out on claiming ITC on even a single invoice ever again. Save both time and taxes, and ensure 100% accuracy while filing GSTR-9.