Input tax credit: GSTN enables taxpayers to know eligibility at invoice level while filing annual return

Our Bureau | Updated on August 18, 2020

The new functionality is a major relief for annual return filers who used to report that figures of ITC

Goods & Services Tax Network (GSTN) on Tuesday announced switching on a new functionality to assist 14 lakh assessees in better compliance.

With the help of new functionality, the assessees will know their exact eligibility of input tax credit (ITC) flowing in their annual return and thereby filing the annual return, i.e. GSTR-9 more conveniently. This will help taxpayers download of invoices which account for ITC in Table 8A of Form GSTR-9, annual return. Also, it will give reasons for non-inclusion of an invoice in ITC value can be found out.

As on June 30, there are around 1.24 crore registered assessees under GST, out of which around 14 lakh taxpayers are mandated to file Annual Return GSTR-9 as their annual aggregate turnover was more than ₹2 crore.

Till now, the system used to compute eligible ITC based on suppliers’ GSTR-1 and due to the governing rules like those filed till last date etc, the break-up at invoice level was not provided. Taxpayers used to raise query on computation of ITC. To bring the entire computation to taxpayers by way of showing each and every invoice filed by the suppliers and showing eligibility against each, this functionality has been developed.

For this, a new tab ‘Download Table-8A details’ has been introduced on the GSTR-9 dashboard of the GST portal from financial year 2018-19 onwards.

A major relief

Now, the new functionality is a major relief for annual return filers who used to report that figures of ITC, as pre-populated in Table-8A of Form GSTR-9, do not match with the figures as appearing in their Form GSTR-2A (Form GSTR-2A is a dynamic form which shows saved as well as filed invoices of suppliers.

Even those invoices filed after the last day for inclusion in annual returns, are also shown in GSTR-2A. Such invoices are not eligible for being counted for ITC. The taxpayers will now be able to know their ITC at the invoice level and reconcile the values appearing in Table-8A of Form GSTR-9 while filing their annual return. It will facilitate taxpayers to download document-wise details of Table-8A of Form GSTR-9, from the GST portal in excel format and view the entire Table-8A to know eligibility against each invoice.

In case the invoice is not found eligible for ITC, reasons will be given against the same. For example, it could be reverse charge document or taxpayer has opted composition scheme.

Apart from this, there could be one more scenario wherein the taxpayer will not be able to avail ITC while filing of Annual Return GSTR-9. If the supplier has filed GSTR-1 or GSTR-5 after the cut-off date, it will not be considered for availability of ITC, though the ITC details might be shown in his GSTR-2A. The cut-off date, for FY-2018-19, is October 31, 2019.

Published on August 18, 2020

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