GSTR 9- Tax payable
This query is : Resolved
21 September 2025
Dear Members,
If Input tax credit taken in GSTR 3B is reversed in returns filed and not in books as on 31st March 2025, will that amount to tax payable in GSTR 9 or 9C?
Can we mention in un-reconciled amount in GSTR 9C that reversed in next F.Y., if the same is reversed in next F.Y in books
If Input tax credit taken in GSTR 3B is reversed in returns filed and not in books as on 31st March 2025, will that amount to tax payable in GSTR 9 or 9C?
Can we mention in un-reconciled amount in GSTR 9C that reversed in next F.Y., if the same is reversed in next F.Y in books
21 September 2025
If input tax credit (ITC) taken in GSTR-3B is reversed in returns filed but not in the books as on 31st March 2025, this creates a difference between the return and financial records, which will reflect as unresolved ITC in GSTR-9C reconciliation. This difference does not automatically become tax payable in GSTR-9 or 9C, but it must be reconciled and disclosed, particularly in GSTR-9C, along with its reason such as “ITC reversed in next financial year in books”.
21 September 2025
Treatment in GSTR-9 and 9C
ITC reversals shown in GSTR-3B for FY 2024-25 but not reflected in books as of 31 March 2025 must be carefully reported in GSTR-9 (Table 7).
In GSTR-9C, reconciliation between books and returns will show an “unreconciled ITC” if ITC reversal in GSTR-3B is not matched by a reversal in the books as of year-end.
The reason for this unreconciled amount—such as reversal in the next FY—should be clearly stated in the explanatory section of GSTR-9C (Table 13), which allows textual explanation for reconciliation differences.
ITC reversals shown in GSTR-3B for FY 2024-25 but not reflected in books as of 31 March 2025 must be carefully reported in GSTR-9 (Table 7).
In GSTR-9C, reconciliation between books and returns will show an “unreconciled ITC” if ITC reversal in GSTR-3B is not matched by a reversal in the books as of year-end.
The reason for this unreconciled amount—such as reversal in the next FY—should be clearly stated in the explanatory section of GSTR-9C (Table 13), which allows textual explanation for reconciliation differences.
21 September 2025
Disclosure of Subsequent Year Reversal
When the reversal appears in the books in the next financial year, it can be disclosed in GSTR-9C as the reason for reconciliation difference for FY 2024-25.
The amount will be reflected as a difference in GSTR-9C for FY 2024-25, and reconciliation notes can specify that it was reversed in the following FY.
This is an accepted practice and helps reconcile differences between GSTR-3B, GSTR-9, and audited financial statements.
When the reversal appears in the books in the next financial year, it can be disclosed in GSTR-9C as the reason for reconciliation difference for FY 2024-25.
The amount will be reflected as a difference in GSTR-9C for FY 2024-25, and reconciliation notes can specify that it was reversed in the following FY.
This is an accepted practice and helps reconcile differences between GSTR-3B, GSTR-9, and audited financial statements.
21 September 2025
The correct compliance is to document the reconciliation difference in GSTR-9C and specify that the reversal is reflected in the next financial year’s books, ensuring transparency and proper audit trail for tax authorities.
21 September 2025
Thanks a lot for your explanation Sir
21 September 2025
You are welcome.
21 September 2025
One more doubt- What if ITC for previous year adjusted in GST return filed for August 25 and also shown in books in August 2025 i.e. in narration ITC for previous year, no effect/disclosure to be done in GSTR 9 & 9C for 24-25?
or Part V of GSTR 9 to be disclosed -particulars of transaction for the financial year declared in next financial year till the specified period (for previous year 23-24 can also be shown here under this option?)
or Part V of GSTR 9 to be disclosed -particulars of transaction for the financial year declared in next financial year till the specified period (for previous year 23-24 can also be shown here under this option?)
21 September 2025
One more doubt- What if ITC for previous year adjusted in GST return filed for August 25 and also shown in books in August 2025 i.e. in narration ITC for previous year, no effect/disclosure to be done in GSTR 9 & 9C for 24-25?
or Part V of GSTR 9 to be disclosed -particulars of transaction for the financial year declared in next financial year till the specified period (for previous year 23-24 can also be shown here under this option?)
or Part V of GSTR 9 to be disclosed -particulars of transaction for the financial year declared in next financial year till the specified period (for previous year 23-24 can also be shown here under this option?)
21 September 2025
If ITC pertaining to a previous year is both availed and reflected in the GST return and books in August 2025, that is, in the next financial year, then this ITC must be reported in Part V of GSTR-9 for the previous year (here, FY 2024-25). This is because Part V of GSTR-9 is specifically meant for reporting transactions relating to the prior financial year but which are declared in GST returns of April to (generally) October of the next financial year, or up to the date of filing the annual return, whichever is earlier.
21 September 2025
Applicable Section in GSTR-9
For FY 2023-24, ITC related to that year but claimed in returns filed from April 2024 to (typically) October 2024, or up to the annual return filing date, should be disclosed in Table 13 of GSTR-9 (Part V).
Since in your example, the ITC was taken in August 2025 (for previous year supplies), and if claimed within the allowed time limit (up to 30th November 2025 or filing of annual return for FY 2024-25, whichever is earlier), it should be shown in Part V of GSTR-9 for FY 2024-25 as "Particulars of the previous FY declared in returns of April to November of current FY".
For FY 2023-24, ITC related to that year but claimed in returns filed from April 2024 to (typically) October 2024, or up to the annual return filing date, should be disclosed in Table 13 of GSTR-9 (Part V).
Since in your example, the ITC was taken in August 2025 (for previous year supplies), and if claimed within the allowed time limit (up to 30th November 2025 or filing of annual return for FY 2024-25, whichever is earlier), it should be shown in Part V of GSTR-9 for FY 2024-25 as "Particulars of the previous FY declared in returns of April to November of current FY".
21 September 2025
Reporting in GSTR 9C
GSTR-9C, the reconciliation statement, will automatically include the ITC figures as reported in GSTR-9, including these prior-period adjustments. Disclosures in GSTR-9C should match those in GSTR-9 (Part V/Table 13).
There is no need to make a separate “unreconciled” disclosure for these items, provided they are properly reflected in the correct sections of both returns and books for the relevant year.
GSTR-9C, the reconciliation statement, will automatically include the ITC figures as reported in GSTR-9, including these prior-period adjustments. Disclosures in GSTR-9C should match those in GSTR-9 (Part V/Table 13).
There is no need to make a separate “unreconciled” disclosure for these items, provided they are properly reflected in the correct sections of both returns and books for the relevant year.
21 September 2025
ITC for a previous year, availed after 31st March but within the statutory time limits and correctly reflected in both books and returns, should be disclosed in Part V/Table 13 of GSTR-9 for that year.
No separate or additional disclosure is required in GSTR-9C beyond reconciliation, as long as GSTR-9 is filled correctly and correlates with the audited books.
ITC claimed after the permissible period is not allowed and should not be shown in GSTR-9; only eligible and timely availed credits should be reported in Part V.
Thus, for ITC for a previous year availed in August 2025 (and within allowed timelines), show the amount in Table 13, Part V, of GSTR-9 for 2024-25, with no separate disclosure needed in 9C except as part of the normal reconciliation.
No separate or additional disclosure is required in GSTR-9C beyond reconciliation, as long as GSTR-9 is filled correctly and correlates with the audited books.
ITC claimed after the permissible period is not allowed and should not be shown in GSTR-9; only eligible and timely availed credits should be reported in Part V.
Thus, for ITC for a previous year availed in August 2025 (and within allowed timelines), show the amount in Table 13, Part V, of GSTR-9 for 2024-25, with no separate disclosure needed in 9C except as part of the normal reconciliation.
21 September 2025
Sir,
ITC for the current year reversed in next financial year has to be shown in GSTR 9 Part V (12) but, in GSTR 9C Part IV (12) only ITC availed in shown what about ITC for the current financial year reversed in next FY?
Is the ITC reported in GSTR 9c Part IV (12 b,c) net off reversal?
ITC for the current year reversed in next financial year has to be shown in GSTR 9 Part V (12) but, in GSTR 9C Part IV (12) only ITC availed in shown what about ITC for the current financial year reversed in next FY?
Is the ITC reported in GSTR 9c Part IV (12 b,c) net off reversal?
22 September 2025
For the current financial year, Input Tax Credit (ITC) reversed in the next financial year must be shown in GSTR 9 Part V (Table 12), consistent with instructions issued by GST authorities. In GSTR 9C Part IV (Table 12), ITC reporting breaks down as follows: Table 12A reports ITC availed (after reversal) as per the audited annual financial statements; Table 12B covers ITC booked in earlier financial years but availed in the ledger during the year of reconciliation; and Table 12C captures ITC booked in the current financial year but availed in subsequent financial years, such as reversals in the next year.
22 September 2025
In GSTR-9, ITC for the current year but reversed in the next FY is specifically reported in Part V (Table 12), ensuring compliance and visibility of such adjustments to tax authorities.
In GSTR-9C, Part IV (12) provides for reconciliation based on the audited annual financial statements. Table 12A reports ITC after reversals, meaning the net ITC (ITC availed minus any reversals) should be shown here.
Table 12C of GSTR-9C is for ITC booked in the current year and availed (reversed) in the next financial year, specifically capturing these entries for proper reconciliation between books and returns.
In GSTR-9C, Part IV (12) provides for reconciliation based on the audited annual financial statements. Table 12A reports ITC after reversals, meaning the net ITC (ITC availed minus any reversals) should be shown here.
Table 12C of GSTR-9C is for ITC booked in the current year and availed (reversed) in the next financial year, specifically capturing these entries for proper reconciliation between books and returns.
22 September 2025
The ITC amount reported in Table 12A of GSTR-9C is after considering any reversals.
Table 12B reports ITC booked in earlier years but availed in the ledger this year; Table 12C explicitly shows ITC booked for the current year but actually availed in the subsequent FY.
Thus, Tables 12B and 12C are designed to present ITC movements net of the reversals, clarifying reporting lines and ensuring accurate reconciliation at the entity level.
Table 12B reports ITC booked in earlier years but availed in the ledger this year; Table 12C explicitly shows ITC booked for the current year but actually availed in the subsequent FY.
Thus, Tables 12B and 12C are designed to present ITC movements net of the reversals, clarifying reporting lines and ensuring accurate reconciliation at the entity level.
22 September 2025
Reversals made for the current year in the next financial year must be properly disclosed in GSTR-9 Part V (Table 12) and in GSTR-9C Table 12C to ensure traceability and audit compliance.
ITC reported in GSTR 9C Part IV (12 b,c) should always be net of reversals, as the reconciliation is designed to reflect the actual credit availed after such adjustments.
Finally, ITC for the current year reversed in the next FY is not ignored; it is shown in GSTR 9 Part V (12) and GSTR 9C Part IV Table 12A (net off reversal) and Table 12C (ITC booked but reversed/availed in next FY), all as per the reconciliation mechanism mandated in GST annual returns.
ITC reported in GSTR 9C Part IV (12 b,c) should always be net of reversals, as the reconciliation is designed to reflect the actual credit availed after such adjustments.
Finally, ITC for the current year reversed in the next FY is not ignored; it is shown in GSTR 9 Part V (12) and GSTR 9C Part IV Table 12A (net off reversal) and Table 12C (ITC booked but reversed/availed in next FY), all as per the reconciliation mechanism mandated in GST annual returns.
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