Filing the GSTR-9 annual return is a critical task for businesses under the Goods and Services Tax (GST) system in India. This form consolidates the information provided in monthly and quarterly returns filed during the financial year. While the process may seem straightforward, businesses often make mistakes that can lead to penalties, notices, or even audits. Here’s a detailed guide on common mistakes in GSTR-9 filing and how to fix them effectively.

1. Incorrect Reporting of Input Tax Credit (ITC)

One of the most common errors in GSTR-9 filing is incorrect reporting of Input Tax Credit (ITC). This happens when the ITC claimed does not match the details in GSTR-2A or GSTR-2B.

How to Fix:

• Cross-check ITC details with GSTR-2A and GSTR-2B before filing.
• Ensure ITC claimed during the financial year is properly categorized.
• Maintain accurate purchase records to support ITC claims.

2. Mismatch Between GSTR-1, GSTR-3B, and GSTR-9

Discrepancies between the outward supplies reported in GSTR-1, the tax paid in GSTR-3B, and the consolidated figures in GSTR-9 can lead to scrutiny.

How to Fix:

• Reconcile sales details reported in GSTR-1 and GSTR-3B.
• Ensure that figures in GSTR-9 are consistent with both forms.
• Use reconciliation tools or software to identify discrepancies.

3. Incorrect Turnover Reporting

Turnover discrepancies are often due to errors in including or excluding certain transactions, such as export sales or exempt supplies.

How to Fix:

• Verify turnover from audited financial statements.
• Include all taxable, exempt, and zero-rated supplies.
• Cross-check turnover with GSTR-1 and GSTR-3B filings.

4. Non-Reporting of Amendments

Amendments made in subsequent returns are often overlooked while filing GSTR-9, leading to incomplete reporting.

How to Fix:

• Review all amendment invoices issued during the year.
• Ensure that both upward and downward adjustments are correctly reported.

5. Incorrect Late Fee and Interest Calculation

Failure to correctly calculate late fees and interest for delayed tax payments can lead to underreporting.

How to Fix:

• Calculate late fees and interest based on the actual delay.
• Ensure accurate reporting in Table 8 and Table 14 of GSTR-9.

6. Errors in HSN Summary

Misreporting or missing Harmonized System of Nomenclature (HSN) codes is another common mistake.

How to Fix:

• Ensure HSN codes are consistent with invoices.
• Verify turnover under each HSN category.

7. Non-Reconciliation with Books of Accounts

Failure to reconcile GSTR-9 with books of accounts can lead to inconsistencies and audit risks.

How to Fix:

• Reconcile turnover, ITC, and tax paid with financial statements.
• Ensure all adjustments and corrections are accounted for.

8. Overlooking Reverse Charge Mechanism (RCM)

Many businesses forget to include transactions under the reverse charge mechanism.

How to Fix:

• Review purchases for reverse charge applicability.
• Report tax paid under RCM in the relevant tables of GSTR-9.

Conclusion

Avoiding common mistakes in GSTR-9 filing requires careful reconciliation, accurate record-keeping, and thorough review. Businesses should leverage accounting software and professional assistance to ensure error-free filing. ASK ASSOCIATES can assist in ensuring a smooth filing process, reducing the risk of penalties and notices.