Handling Cross-Financial Year GST Transactions: Reporting in GSTR-9 and GSTR-9C

Managing GST transactions that span across financial years can be challenging. This article provides a comprehensive guide to addressing such scenarios, with specific focus on sales transactions pertaining to FY 2022-23 but reported or amended in FY 2023-24. We’ll also look at how to correctly report these in GSTR-9 and GSTR-9C, supported by an easy-to-understand table for clarity.

Scenario 1: Sale Recorded in FY 2022-23 but Invoice Issued in FY 2023-24

Key Points to Understand:

• Invoice Date Determines Reporting Year: In GST, the date of invoice issuance determines the financial year for reporting, even if the transaction pertains to an earlier year.
• Treatment in GSTR-9 for FY 2023-24:
  • Such transactions will not appear in GSTR-9 for FY 2022-23.
  • They must be included in Table 4 of GSTR-9 for FY 2023-24 under outward supplies.
• Reconciliation: Maintain proper records to reconcile financial accounts of FY 2022-23 with GSTR-9 for FY 2023-24.

Action Steps:

• Report the transaction in GSTR-9 for FY 2023-24.
• Match GST returns with books of accounts to avoid discrepancies.
• Document the reasons for the timing difference for GST audits.

Scenario 2: Transaction Related to FY 2022-23 Amended or Reported in FY 2023-24

Key Points to Understand:

• Amendments in GSTR-9:
  • If a sale from FY 2022-23 is reported or amended in FY 2023-24 (before 30th November 2024), the amendment can be reflected in Table 10 of GSTR-9 for FY 2022-23.
• Reporting in FY 2023-24:
  • Include the transaction in Table 4 of GSTR-9 for FY 2023-24 if it was declared in the current year’s GSTR-1 or GSTR-3B.
• Adjustments in GSTR-9C:
  • Reconcile unbilled or amended revenue in Table 5 of GSTR-9C for FY 2023-24.

Action Steps:

• Reflect amendments in the appropriate tables of GSTR-9.
• Clearly disclose adjustments in GSTR-9C with supporting documentation.
• Ensure reconciliation between turnover in books and GST returns.

Tables for Easy Understanding:

Reporting in GSTR-9

Scenario	GSTR-9 for FY 2022-23	GSTR-9 for FY 2023-24
Sale recorded in FY 2022-23, invoice issued in FY 2023-24	Not applicable	Report in Table 4 (Outward Supplies)
Sale from FY 2022-23 amended in FY 2023-24	Report in Table 10 (Amendments)	Report in Table 4 (Outward Supplies)

Reconciliation in GSTR-9C

Adjustment Type	Table in GSTR-9C	Notes
Unbilled revenue at year-end	Table 5B (FY 2022-23)	Adjust turnover to match books
Unbilled revenue at year beginning	Table 5C (FY 2023-24)	Reflect amended or delayed sales
Amendments or late reporting	Table 5 (Both FYs)	Provide clear audit trail

Compliance Best Practices:

• Timely Amendments: Use the amendment window (up to 30th November of the subsequent financial year) to correct or report missing transactions.
• Proper Documentation:
  • Maintain records of invoice issuance and amendments.
  • Reconcile sales ledgers with GST returns.
• GST Auditor’s Role: Work with your GST auditor to ensure accurate reporting and reconciliation in GSTR-9C.

Conclusion:

Handling cross-financial year transactions under GST requires careful attention to invoice dates and compliance deadlines. By correctly reporting such transactions in GSTR-9 and reconciling them in GSTR-9C, you can avoid discrepancies and ensure smooth GST audits. Use the above steps and tables to manage these situations effectively.