GSTR-9 just got easier: Here’s what’s new in ITC reporting and why it matters for FY25

The GST Council has introduced a key change in GSTR-9 reporting by adding a dedicated field in Table 6 to separately disclose Input Tax Credit (ITC) claimed from the previous financial year—a move expected to ease reconciliation and reduce reporting errors.

As per the latest notification, GSTR-9's Table 6 now includes new rows A1 and A2 under Part III, allowing taxpayers to clearly distinguish ITC carried forward from the preceding year. Row A1 captures ITC of the prior financial year availed in the current year (as already included in 6A), excluding credits reclaimed under Rule 37 and 37A. Row A2 auto-calculates net current year ITC as (A - A1).

This change aligns with the reconciliation logic previously handled through Table 13 and Table 12, which tracked prior year ITC and reversals respectively. According to advisory notes from practitioners, the figures in A1 should ideally match last year’s Table 13 minus Table 12, except in rare edge cases involving time-barred credits or late reversals.

Tax professionals have welcomed the move. “This bifurcation helps ensure cleaner year-to-year ITC tracking and reduces reconciliation friction during audits or assessments,” said a senior GST consultant at Carajput.

Alongside this structural change, the GST authorities have also announced exemptions for certain tables in GSTR-9 for FY 2024–25, particularly for small taxpayers. Reporting in some tables, including parts of Tables 6 and 7, has been relaxed or made optional to streamline compliance.

These measures are part of a broader strategy to rationalize annual return requirements, especially for businesses with limited operations or simpler tax profiles. However, tax professionals advise continued vigilance in maintaining accurate year-wise records to avoid mismatches in credit claims.