Credit Mismatch – What is it and how to deal with it?

As per the provisions of Central Goods and Service Tax Act, every registered person under GST is required to file the annual return GSTR-9 irrespective of his business turnover. GSTR-9 contains all the details about inward or outward supplies of an entity, taxes paid, refund claimed and ITC availed by the taxpayer.

Deadline for filing GSTR-9 is already nearby and the Government has clearly stated that the date will not be extended anymore. Thus, to avoid any interest and penalties or any demand notice by the tax department, taxpayers should file the annual return before the due date i.e. 30th June 2019.

The primary reason for receiving a notice from the Tax Department is a mismatch of the input tax credit in returns GSTR-3B and GSTR-2A. Hence, before filing GSTR-9, taxpayers must ensure that there are no discrepancies in the data submitted in returns GSTR-3B, GSTR-2A and GSTR-9.

Possible reasons for mismatches:-

The most common reasons for the Credit mismatch of Input Tax Credit claimed are:

  • Difference in the values entered in the books of accounts and supplier’s invoice.
  • Omission in recording any Purchase or Debit notes.
  • The invoices for which ITC is claimed are yet to be uploaded by the supplier.

To reduce the complications being faced by taxpayers, the GSTN team has given clarification over various issues faced by the taxpayers while filing GSTR-9:

  • For taxpayers whose turnover exceeds Rs. 2 crores, data filled in GSTR-9 must tally with the books of accounts and mismatch, if any, should be disclosed in the reconciliation statement.
  • Details of any additional outward supply that was not disclosed in monthly and quarterly filed returns shall be declared in FORM GSTR-9 and any additional tax liability shall be paid through FORM DRC-03 along with interest amount.
  • All the details filled in Form GSTR-2A till May 1st 2019, need to be auto-populated in Table 8A of FORM GSTR-9.
  • ITC on inward supplies shall be disclosed in Table 8C of FORM GSTR-9.
  • Details of transactions carried on in the financial year 2018-19 must be declared in Pt. V of FORM GSTR-9.
  • Reconciliation of outward turnover reported in GST returns should be done with annual turnover reported in the income tax return, and if any difference occurs, the same shall be reported in GSTR 9. 
  • There may be chances of mismatch of turnover due to deemed supply i.e. branch transfer which is required to be reported separately in GSTR 9. 
  • GSTR-3B and GSTR-1 shall be reconciled for outward liability and any difference must be reported and treated accordingly in GSTR 9.
  • ITC claimed in GSTR 3B and GSTR 2A shall be reconciled properly.
  • If ITC claimed in GSTR 2A is more than ITC claimed in GSTR 3B, then the difference of ITC must be adjusted in GSTR 9.
  •  If ITC claimed in GSTR 3B is more than ITC in GSTR 2A, then such ITC must be claimed as per section 16(2) as there may be high chances to face scrutiny in such cases.
  • To ensure accuracy of final balances, the electronic credit ledgers and trial balances in the books of accounts should be reconciled.
  • To avoid unnecessary obstacles, the taxpayer should ensure that there is substantial documentary proof of all data that is reported in the return.
  • If GSTR-9 is filed after the due date, a penalty of Rs. 200 per day will be levied on the taxpayer.
  • GSTR-9 must be filed with due care as there is no provision in the act to revise the return.
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GSTR-9 Annual return workshop in Bangalore

Annual Return (Theory) (3 hours)

1. Meaning of Annual Return 

2. Different Types of Annual Returns 

3. Who need to file Annual Returns? 

4. Preconditions of filing form GSTR9 
5. Explaining the terminology used in GSTR1 & GSTR3B 

6. Difference Between GSTR9 & GSTR9C 

7. What happens once filed the GSTR9 in GSTN ledger 

8. Drawbacks & Issues in GSTR9 and its suggestions 

Annual Return Topics covered (Practical) (5 hours)

1. Details of Advances, Inward and Outward Supplies made during the financial year on which tax is payable 

2. Details of Outward Supplies Made During the financial year on which tax is not payable 

3. Details of ITC Availed during the financial year. 

4. Details of ITC Reversed and Ineligible ITC for the financial Year 

5. Other ITC Related Information 

6. Details of Tax Paid as Declared in returns filed during the financial year 

7. Details of the previous financial year’s transactions reported in next Financial Year 


Parijatha Gateway – Premium Business Hotel, 26/4 & 5, Dr.Raj Kumar Road 
Opposite Govt. Soap Factory, Rajajinagar, Bangalore – 560055 
( Lunch and High tea provided)

CONTACTSANTHOSH KUMAR – 9902 977 233 / 9342103552

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FORM GSTR 9 – What you need to know about it?

FORM GSTR 9 is an annual return that should be filed by the taxpayers who are registered under GST. It should be filled by even those who are registered under the composition Levy scheme. In GSTR 9 form, you would see various information related to supplies received and done during the whole year under various tax heads such as CGST, SGST and IGST.

You should also understand the types of return under GSTR-9 form. There are four different types of form under the GSTR-9 forms. These forms are as follows:

GSTR 9 – This form should be filed by the regular taxpayer who is filing GSTR 1, GSTR 2 and GSTR 3.

GSTR 9A – To be filled by the individuals who are registered under Composition Scheme

GSTR 9B – To be filed by the e-commerce operators who have also filed GSTR 8 during the financial year.

GSTR 9C – This form should be filed by the taxpayers who have annual turnover to the north of Rs 2 crores during the financial year. If you fall under this category, you should also get the accounts audited and file a copy along with the reconciliation statement of tax that has been paid already as well as tax playable as per the audited accounts along with GSTR 9C.

Due date and Penalty

Due date of filing GSTR 9 is before 31st December of the subsequent financial year. In case you fail to file the return by the due date, the penalty of Rs 100 day per act would be added, maximum of an amount arrived on a quarter percent of the taxpayer turnover in the State as well as the Union territory. Put it simple, you would be fined Rs 100 under CGST and Rs 100 under SGST which bring the total penalty to Rs 200 per day of default.

What are the Details required?

Part I – You would need to provide the basic details  and the details would be auto-populated

Part II – The taxpayer would need to offer the details of Outward and Inward supplies during the financial year. The details would be recorded by consolidating summary from every GST returns filed in the previous financial year.

Part III – You would need to provide the details of ITC in returns filed during the Financial Year.

Part IV – Entire detail of the tax paid as per the declaration made during the financial year

Part V – Specifics of the transactions for the previous financial year that you have declared in returns of April to September of current financial year or up to the date of filing of annual returns of previous financial year, whichever is earlier.

Part VI – Other details including:

  • GST Demands and refunds
  • HSN wise information of the quantity of goods supplied and received with its corresponding tax details against every HSN code.

No Revision allowed

Make sure that you are filling all the information correctly and thereafter revising it once before clicking on the submit button. It is because you would not be allowed to make any revisions in the form. Any errors or omission can only be rectified or included in the next month’s return.

Format of GSTR-9


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All you need to know about filing GSTR-10

GSTR-10 is a final return form, furnished by the taxable Individual whose GST registration is cancelled or surrendered. GSTR-10 contains details about all the stock that is held by the registered dealer till the date of cancellation of registration.

Due date for GSTR-10:
An Individual whose registration is cancelled and but has to file GSTR 10 must file it electronically within three months of the date of cancellation or date of cancellation order whichever is later.

Who should file GSTR-10?
GSTR 10 is to be filed only by such persons whose registration is cancelled or surrendered under GST. Other persons registered under GST are not required to file this return. Input service distributors, non-resident taxable persons, composition taxpayers, and persons required to deduct or collect TDS and TCS are also exempted from filing GSTR 10.

Difference between Final Return and Annual Return?
Taxpayers often confuse between GSTR 9 (annual return) and GSTR 10 (final return).
However, there are 2 main differences between GSTR 9 and GSTR 10:

  1. Annual return is mandatorily required to be filed by every registered person paying tax as a normal taxpayer under GST whereas, the Final return should be filed only by such persons registered under GST law who opts for cancellation of GST registration.
  2. Annual return, as the name represents, is to be filed by the person once in a year only in form GSTR 9, whereas, GSTR-10 is a one-time statement.

Penalty for not filing GSTR 10 on time
First of all, a notice will be sent to the registered person as a warning and 15 days time will be given to file the GST return 10 with all the documents required. If the person still does not file GSTR-10, the tax officer passes the order for cancellation of GST registration and tax payable along with any interest or penalty.

Details to be provided in GSTR-10:
Various details must be provided in GSTR 10 some of which are auto-populated at the time of system login while some details are needed to be furnished by the person. The details that are auto-populated while filing GSTR 10 includes GSTIN, Legal Name of the person, and Name and address of the business. Sections that need to be furnished include Application Reference Number, Effective Date of Surrender/Cancellation of GST registration, the Unique ID of Cancellation order provided by the authorities, Date of Cancellation Order and Particulars of Closing Stock.

Procedure to file GSTR10

Login to GST portal and click on services option and then on returns. In the column that appears, click on Final return option.  A window will appear mentioning 2 options, prepare online and prepare offline. Taxpayers with less than 500 records per table usually make use of prepare online facility while others may use prepare offline facility.

Final Return Dashboard
File Return Dashboard

After clicking on the Final Return option, the window would appear as follows:

Final Return Option
Final Return Option

Enter, the details on the 8A, 8B & 8C – Goods Details With Invoices column.

Good Details
Good Details

Click on the ‘Add Details’ Button

Add Details Page
Add Details Page

Select the Supplier’s registration and select from he dropdown list

Supplier Registration
Supplier Registration

Taxpayer would then be taken to the GSTR-10 dashboard page and the 8A,8B and 8C- Goods Details with Invoice column, 8D- Goods Details Without Invoices box in Form GSTR-10 will show all the records and value of goods.

GSTR -10 Details Page
GSTR -10 Details Page

After entering all the details, click PREVIEW DRAFT GSTR-10 button. This button will download the draft Summary page of Form GSTR-10 for review.

Draft GSTR -10
Draft GSTR -10 

Then Click on PROCEED TO FILE tab

File Tab
File Tab

After the status of GSTR-10 is ready to file, other tabs such as 9 & 10, amount of tax payable and paid tiles get enabled.

Tab 9 &10
Tab 9 &10 

File form GSTR – 10 with DSC/EVC

File 10
File 10