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GSTR-9 FAQs FY 2024-25: Key ITC & RCM Clarifications

The GSTN has released a new set of Additional FAQs for GSTR-9 for FY 2024-25, providing much-needed clarity on Input Tax Credit (ITC) reporting, RCM disclosures, previous-year adjustments, and reconciliation challenges.

For finance teams, MSMEs, and enterprises using AP automation platforms like CashFlo to streamline compliance, these updates are especially important. Filing the annual return is often a complex task: multiple adjustments across years, mismatches between GSTR-3B and books, and varied interpretations of reporting rules make GSTR-9 a time-consuming exercise.

These latest FAQs simplify many grey areas and help taxpayers prepare their annual filings with more confidence and accuracy.

In this detailed blog, we break down every clarification in simple, practical language, so you can complete your GSTR-9 and GSTR-9C compliantly and without errors.

RCM Paid Late: Report in the Year of Payment, Not the Year of Liability

One of the most common doubts is about Reverse Charge Mechanism (RCM) liabilities paid late.

For example:‍

RCM for FY 2024-25 is paid in FY 2025-26.
Should this be shown in GSTR-9 for 2024-25 or 2025-26?

GSTN Clarification

You must report the RCM tax and its ITC in the GSTR-9 of the year in which the tax was actually paid.

This aligns with CBIC’s earlier press release (3 July 2019), which stated that late-paid RCM belongs to the year of payment not the year of the original transaction.

What Businesses Should Do

If you paid RCM for FY 2024-25 in FY 2025-26:

Report it in GSTR-9 of FY 2025-26,
Do not show it in GSTR-9 for 2024-25.

This significantly reduces confusion and ensures uniform reporting across taxpayers.

Previous-Year Ineligible ITC Availed & Reversed in FY 2024-25: Where to Show It?

Many businesses discover ineligible ITC from the previous financial year and correct it during the current year.

Example scenario

Ineligible ITC of FY 2023-24 was wrongly taken in FY 2024-25 (Table 4A5 of GSTR-3B).
It was reversed within FY 2024-25 (Table 4B1).

GSTN Clarification

ITC of a previous year that is availed during the current year must be reported in Table 6A1 of GSTR-9.
However, the reversal of such ITC should not be reported in Table 7 because Table 7 is strictly for current-year reversals.

Impact on Businesses

You must report only the ITC availed portion (even if later reversed).
The reversal does not appear in GSTR-9 for FY 2024-25.

Table 12B in GSTR-9C Still Applies — Mismatches Are Expected

Table 12B of GSTR-9C captures ITC that was booked in earlier years but claimed in the current year.
Since Table 7J of GSTR-9 (net ITC for current FY only) does not include such adjustments this year, taxpayers may believe that Table 12B becomes irrelevant.

GSTN Clarification

Table 12B continues to be relevant.
These ITC values will not appear in Table 12A (ITC as per books) or 12E (ITC as per GSTR-9), so they must be specifically disclosed in 12B.

Managing Mismatches

If there are differences in Table 12F (unreconciled ITC differences), taxpayers may explain the reasons in Table 13 of GSTR-9C.
This ensures transparency and reduces the chances of audit queries.

Why Table 7J of GSTR-9 Will Not Match Table 4C of GSTR-3B

This is another frequent point of confusion for businesses.
Table 4C of GSTR-3B includes:

Current-year ITC, plus
Previous-year ITC claimed in the current year, minus
Previous-year and current year reversals done in the current year

However, Table 7J of GSTR-9 includes only current-year ITC data.

GSTN Clarification

So, the two tables will not match whenever earlier-year ITC is adjusted in the current year.

What It Means for Filers

Differences between Table 4C and Table 7J are normal and should not be considered an error.
Record-keeping and reconciliation processes should capture these movements clearly.

Reporting ITC of FY 2023-24 Reversed in FY 2024-25

If you reverse ITC pertaining to FY 2023-24 in the GSTR-3B of FY 2024-25, where should it be shown?

GSTN Clarification

It should not be reported anywhere in GSTR-9 for FY 2024-25.

Why?

Because GSTR-9 requires reversals only for the current FY, and previous-year reversals do not fall under any of its reporting tables.

For Finance Teams

Record the reversal properly in your books and GSTR-3B, but you don’t need to show it again in GSTR-9.

ITC Appearing in FY 2023-24 2B but Goods Received in FY 2024-25

A common scenario is when a supplier uploads an invoice in FY 2023-24, but the goods are received by the taxpayer only in April 2024.
In such cases, ITC is correctly claimed in FY 2024-25.

Reporting in GSTR-9

Such ITC should be reported in Table 6A1 (ITC availed for previous year but claimed in current year) of GSTR-9 for FY 2024-25.

Impact on GSTR-9C

Although this ITC belongs to FY 2023-24, it may appear in the books of FY 2024-25 depending on the accounting method followed.

If differences arise in Table 12F (unreconciled ITC differences) of GSTR-9C, taxpayers should explain the reason in Table 13.
This keeps the reconciliation transparent and compliant.

Reporting Non-GST Purchases in GSTR-9

Non-GST items include:

Petrol, diesel
Electricity
Alcohol for human consumption
Stamp duty
Customs-only imports

GSTN Clarification

These should not be reported anywhere in GSTR-9 because the form does not contain a table for non-GST transactions.

Why This Matters

Many businesses mistakenly try to fit these purchases into GSTR-9 tables, causing unnecessary mismatches.
You can safely skip reporting them.

Who Should Report Table 4G1 of GSTR-9?

Table 4G1 is applicable only to e-commerce operators liable to pay tax under Section 9(5) of the CGST Act.

This includes platforms facilitating:

Passenger transport services
Accommodation
Housekeeping
Some types of restaurant services

Regular registered taxpayers should leave this table blank.

Conclusion‍

The new GSTR-9 FAQs help simplify annual GST reporting and eliminate long-standing confusion around ITC adjustments across years.

For finance teams and MSMEs, these clarifications ensure:

More accurate GSTR-9 and GSTR-9C filing
Reduced risk of mismatches
Fewer future inquiries from the GST department
Less manual effort in reconciling ledgers and returns

Businesses using CashFlo’s AP automation and GST-ready workflows will find it even easier to implement these clarifications. CashFlo’s platform ensures: