GSTN Advisory, Dated 04-12-2025
1. Introduction
The Goods and Services Tax Network (GSTN) has released additional Frequently Asked Questions (FAQs) to clarify various aspects of annual return reporting for FY 2024-25. These FAQs aim to assist taxpayers in understanding key reporting requirements, resolving common compliance doubts, and ensuring accurate preparation of GSTR-9 and GSTR-9C. The latest advisory reinforces GSTN’s ongoing efforts to simplify compliance and enhance taxpayer awareness.
2. Key Clarifications in the Updated FAQs
The newly issued FAQs provide detailed guidance on several recurring issues faced by taxpayers during annual return preparation. These include clarifications on ITC reversal reporting, treatment of amendments made in subsequent years, reporting of exempt and nil-rated supplies, and the correct method of reconciling outward supplies with filed GSTR-1 and GSTR-3B. GSTN has also addressed sector-specific concerns, helping businesses avoid misreporting or mismatches in their annual returns.
3. Guidance on ITC, Amendments, and Reconciliation
A significant portion of the FAQs focuses on Input Tax Credit (ITC) disclosure, including reporting of ineligible ITC, reversals under Rule 42/43, and credits reclaimed during the year. GSTN has emphasised the importance of reconciling books of accounts with GST returns before filing the annual return. The FAQs also clarify the treatment of previous-year adjustments, ensuring taxpayers report amendments accurately without duplication.
4. Impact on Taxpayers and Compliance Requirements
With the issuance of these FAQs, taxpayers are expected to gain better clarity on the structure and expectations of annual return reporting for FY 2024-25. The advisory encourages businesses to complete their reconciliations early, maintain proper documentation, and ensure consistency across all returns. GSTN’s updated guidance helps reduce errors, avoid notices, and strengthen compliance preparedness ahead of the filing deadlines.
5. Conclusion
The GSTN’s release of additional FAQs for FY 2024-25 annual returns marks another step toward simplifying GST compliance and providing structured support to taxpayers. Businesses are advised to carefully review the updated clarifications and incorporate them into their annual return preparation process. By following GSTN’s guidance, taxpayers can ensure accuracy, avoid compliance issues, and complete the filing of GSTR-9 and GSTR-9C smoothly and within the prescribed timelines.
