Filing the GSTR-9 Annual Return for the Financial Year 2025-26 comes with updated requirements and tighter audit reconciliations. The Central Board of Indirect Taxes and Customs (CBIC) has streamlined various tables to ensure higher data accuracy while easing compliance for smaller taxpayers.
Key Changes in GSTR-9 for FY 2025-26
Several modifications have been introduced to Table 4 (details of outward supplies), Table 5 (exempted and non-GST outward supplies), and Table 6 (details of ITC availed). Taxpayers must pay close attention to the following aspects:
- Mandatory HSN Code Reporting: Reporting of HSN codes at the 6-digit level is now mandatory for businesses with an annual turnover exceeding ₹5 Crore. For businesses below this threshold, 4-digit HSN reporting is optional but recommended.
- Reconciliation with GSTR-2B: Input Tax Credit (ITC) claimed in GSTR-3B must closely match with GSTR-2B. Discrepancies exceeding 5% are flagged automatically, requiring explanation in Table 8.
- Table 6 Split: The breakdown of ITC into inputs, capital goods, and input services remains mandatory for input services, though a combined reporting of inputs and capital goods might still be accepted in some state jurisdictions.
Table-by-Table Breakdown & Best Practices
To ensure a hassle-free filing process and minimize errors, follow these table-specific strategies:
1. Outward Supplies (Table 4 & 5)
Ensure that all B2B, B2C, export, and zero-rated supplies match the cumulative totals of monthly GSTR-1 and GSTR-3B returns. Any amendments made in subsequent months of FY 2025-26 must be correctly reported in Table 10 and 11.
2. Input Tax Credit (Table 6, 7 & 8)
Reconcile your books of accounts with GSTR-2B. Reversal of ITC under Rule 37, 42, and 43 must be accurately declared in Table 7 to avoid interest liabilities. Any blocked credit under Section 17(5) should be tracked separately.
3. Penalty and Late Fees
The late fee for delayed filing of GSTR-9 remains ₹200 per day (₹100 under CGST and ₹100 under SGST), capped at 0.5% of the turnover in the state or union territory. Avoid last-minute portal congestion by preparing reconciliations by October 2026.
Conclusion
GSTR-9 is not merely a compilation return; it represents a final opportunity for businesses to correct compliance gaps before department audits. Consulting a qualified Chartered Accountant to run pre-filing reconciliations is highly recommended to protect your business from unnecessary demand notices.