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Published on:

April 22, 2025

Alankar Mishra

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Basics of GST

GSTR-9 to Allow ITC Claims and Invoice Amendments

To ease the compliance burden for businesses, the GST Council is mulling over permitting Input Tax Credit (ITC) claims and invoice modifications at the GSTR-9 level, meaning they would be done in the annual GST return. If adopted, this would address many of the unresolved difficulties encountered by taxpayers, particularly concerning unclaimed ITCs and invoicing discrepancies. We will unpack what this means and why it’s important to you and your business.

Overview Table

Topic	Details
Return Type	GSTR-9 (Annual GST Return)
New Provision Proposed	ITC Claims and Invoice Amendments Allowed
Who Will Benefit	All GST-registered businesses
Applicable Financial Year	Yet to be notified (Expected FY 2023-24)
Decision Authority	GST Council
Primary Keywords	GSTR-9 ITC claim, invoice amendment in GSTR-9
Secondary Keywords	Annual GST return change, GSTR-9 update

What is GSTR-9?

GSTR-9 is the annual return that needs to be submitted by all normal taxpayers who are registered under GST. It comprises the data provided in the periodic returns such as GSTR-1 and GSTR-3B, which include the summary of sales and purchases, ITC claimed, taxes paid, etc.

All GSTR-9 serves as a reporting tool, not a correcting tool. The shift now seeks to change that.

What Are ITC Claims and Why Are They Important?

The Input Tax Credit (ITC) permits taxation on products outputted by a business to be less than the tax paid on inputs required for production. For instance, if you purchased raw materials for ₹10 lakh and paid ₹1.8 lakh in GST, and your final product sold for ₹20 lakh with ₹3.6 lakh GST, you could claim ₹1.8 lakh as ITC.

Non-reporting or misreporting invoices, even at a fundamental level such as only one or two invoices, led to restrictions or denial of ITC claims. These and other roadblocks could finally be cleared due to changes introduced in GSTR-9.

Current Problem: Why Is This Update a Game-Changer?

Here is what businesses had to deal with concerning challenges:

Lost ITC claims as a result of errors in GSTR-3B

Invoice discrepancies on the buyer’s and supplier’s ends

Post-return filing: no adjustments can be made

Incredible amounts of tax credit eligible up to millions or billions being uncompensated

In the past, quarterly computations were only permitted in GSTR-1 or GSTR-3B, and only up to a certain deadline (typically October of the following fiscal year). Beyond that, all ITC benefits expire permanently. This situation has caused enormous compliance burdens, headaches and ever-increasing costs.

Allowing a series of assertions and modifications through GSTR-9 offers much-needed latitude to resolve these issues.

What Will Change with GSTR-9 Allowing ITC Claims & Amendments?

If implemented, here’s how the update will change the landscape:

1. Invoice Corrections in GSTR-9

Users will be able to:

Correct erroneous invoice details.

Incorporate any unaccounted invoices.

Resolve discrepancies within invoice information.

2. Claim Missed ITC

Taxpayers can now:

Claim ITC that was omitted or denied in the past due to mistakes.

Modify the precise ITC figure before the yearly cut-off.

Prevent loss of ITC due to small data problems.

3. One Last Chance for Reconciliation

This, too, shall serve as a final chance opportunity, like how one can revise the Income Tax Return’s revised filing system.

Expected Implementation and GST Council’s View

As per recent industry reports and insider information, the GST Council has ‘in principle’ accepted these modifications. The updates anticipated are to occur:

Through changes in the GST rules.

Through a notification published by CBIC.

Likely starting in FY 2023–24 or 2024–25.

The Council seeks to maintain data integrity and audit controls, even with this flexibility.

Benefits for Businesses

The step has received accolades for being business-friendly and compliance-friendly. Some of the key advantages include the following:

Recuperation of over-claimed ITC amounting to crores.

Less conflict with the Revenue.

Achieving faster and more reliable accuracy in filing GST returns.

Reduced risk of incurring fines.

Improvement in the management of funds.

This also supports multi-branch or high-transaction-volume businesses where small mistakes can add up.

Concerns & Safeguards

Even though the step is worthy, specialists assume there might be some limits and protective measures, for instance:

Only certain categories of ITC changes may be permitted.

GVG may be subject to valuable additions to examination or audit scrutiny.

Amendments that are made too late might incur interest penalties.

Filing the return of GSTR-9 could become increasingly intricate.

Therefore, business organisations need to consider proper accounting and documentation when filing their business tax return.

How to Prepare for This Change

Here’s what you can do to be ready:

1. Maintain Detailed ITC Records

Maintain proper backup of purchase invoices, vendor data, and reconciliations.

2. Conduct Year-End GST Reconciliation

Compare your:

GSTR-2B vs GSTR-3B.

GSTR-1 vs books of accounts.

Input credit ledger vs purchase register

3. Using GST Software Tools

Automated GST reconciliation tools can help detect mismatches and missed ITC, reducing manual effort.

4. Consult a GST Expert

Since the rules are still evolving, it’s wise to consult a professional CA or GST practitioner.

Impact on MSMEs and Large Enterprises

MSMEs

will have another opportunity to receive unclaimed credits.

Can resolve supplier disputes amicably.

This will lessen the burden on working capital.

Large Enterprises

It can organise large data sets effortlessly.

Errors in cross-branch ITC not matching will be fixed.

Avoid huge ITC reversals.

This will help all types of businesses, big or small.

Conclusion

The suggested changes to permit ITC claims and the modification of invoices through GSTR-9 is indeed revolutionary and seeks to empower taxpayers while further simplifying GST compliance. Businesses can, for the first time, with one annual opportunity to amend their invoices, ensure the protection of their cash flows and minimize their tax burden. Nonetheless, prompt reconciliation and scrupulous documentation continue to be imperative in this scenario.

FAQs

Q1. Can I now claim ITC in GSTR-9 if I missed it in GSTR-3B?

Correct, after officially announcing this update, you will be able to recover the unclaimed ITC directly in GSTR-9, abiding by the guidelines set by the authority, of course.

Q2. Can I amend the supplier invoices in GSTR-9?

Correcting or amending invoice data is now possible, unlike before, after filing GSTR-1/GSTR-3B, which is an enhancement included in the proposal.

Q3. Will late ITC claims attract interest or a penalty?

In all probability, late claims will all of a sudden attract interest, especially if they significantly increase the input tax credit. The final circular or notification will still be the deciding factor on the penalty rules.

Q4. From which financial year will this change apply?

The application period is suspected to be from FY 2023-24 onward, but this will be confirmed with the official notification from CBIC.

Q5. Will the GSTR-9 form structure change?

As stated earlier, additions such as new tables or rows for amendments will be made because these new functionalities will require some changes to the GSTR-9 format.