ITC Reporting in Annual Return

In GST Audit for several past years, Many Taxpayers are now getting Show Cause Notices alleging that there is no proper reporting of ITC Reversals and demands are getting raised.

This allegation in many cases are baseless due to the fact that, in earlier years, the itemwise reversals Table 7 in Annual Return was not mandatory. The Instructions appended to the GSTR9 Form clearly states this.

The demands are raised by the Officers mainly due to thier ignorance about this aspect. Many Officers who are young and are into GST Audit have no clear idea about the GSTR 9 Form that was in existence at the relevanty Years.

In several cases, on informing this fact, they drop the demand.