GSTR explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Part IV ends where Part III did — with a payable. But this one is unusual: Table 16 computes interest and penalty on an input tax credit difference, not on tax short-paid on a supply.
Table 15 requires "Reasons for non-reconciliation between ITC availed on the various expenses declared in Table 14R and ITC declared in Table 14S". Table 16 carries "Tax payable on un-reconciled difference in ITC (due to reasons specified in 13 and 15 above)", with rows for Central Tax, State/UT Tax, Integrated Tax, Cess, Interest and Penalty.
Table 15: reading the difference
"This Table is auto populated as it is a calculation of difference between Table 14R and 14S. This is the differential amount between the eligible availed ITC and the availed ITC."
A positive difference — eligible credit per the expense analysis exceeds credit claimed in the return — arises from:
- "Ineligible ITC availed by the registered person";
- "ITC booked in the books of accounts but not availed including ineligible ITC not availed (lapsed)."
A negative difference "can arise on account of ITC booked in the books of accounts but availed in return FORM GSTR-3B of the subsequent year. This can be correlated with Table 13 of FORM GSTR-9."
And the table cannot be independently tested: "This column cannot be validated separately. The reason for such differences has to be explained."
Two differences, one destination
Part IV produces two unreconciled figures:
| Difference | From | Reasons in |
|---|---|---|
| ITC 1 — Table 12F | Books (12D) against annual return (12E) | Table 13 |
| ITC 2 — Table 14T | Expense-wise eligible credit (14R) against annual return (14S) | Table 15 |
And Table 16 takes both. "This column captures tax which is to be paid on account of differences identified in Tables 13 and 15 above. Taxes paid in this Table should ideally be equal to the total of the differences of the two Tables (when positive)."
The parenthesis matters. Only positive differences — excess credit taken — become payable. A negative difference, being credit not yet claimed, is an entitlement rather than a liability, and there is no negative row here any more than in Table 11. Table 11 and the absence of negative reporting →
Interest and penalty on a credit difference
"It is important to note that the Table also demands computation of interest and penalty on such ITC differential."
This is the only place in the statement where that combination appears, and it follows from how excess credit is treated in the Act.
Interest. Where credit was wrongly availed and utilised, interest runs under section 50(3) read with rule 88B(3) — from the date of utilisation to the date of reversal or payment. Credit availed but never utilised does not attract interest under that provision.
Penalty. Excess or wrongly availed credit is within section 73 or section 74 depending on whether fraud or wilful misstatement is present, and the penalty differs accordingly — which is why the row exists rather than being assumed nil.
And the practical instruction from the GSTR-9 side applies here too. Where ineligible credit "has already been utilized, the same is to be paid in cash through Form GST DRC-03"; where it remains unutilised, it can simply be reversed. GSTR-9 Table 7 →
What the two reason tables should actually say
Table 13 — the reasons the Guide lists for the Table 12F difference:
Positive: credit "claimed in Table 13 of the annual return", being credit of the year taken in the next year's returns; and "ITC available but not availed", split between "Ineligible ITC not availed" and "ITC which has lapsed".
Negative: "ITC of another GSTIN claimed in returns of other GSTIN"; "IGST on imported goods used as FOC replacement warranty"; "Duplicate ITC availed"; and "ITC of subsequent year where goods/services were received later but their invoice was received prior."
Table 15 — the reasons for the Table 14T difference: ineligible credit availed, credit booked but not availed including lapsed ineligible credit, and, if negative, credit availed in the next year's GSTR-3B.
The two lists overlap deliberately. The same underlying event — say a duplicate claim — will usually appear in both differences, and the amount is paid once in Table 16, not twice.
And one structural difference now runs through 12F automatically: the exclusion of Table 6A1 credit from Table 7J, which the Guide directs be explained in Table 13 rather than paid. Table 12 and the 6A1 gap →
Where Table 16 goes
"Any additional tax liability arising due to non-reconciliation of the input tax credit are to be disclosed in Table 16… The amount reported in these two Tables [11 and 16] would be summarized and reported in Part V."
So Part IV's output and Part III's output meet in Part V, and both are "to be paid through Cash." Part V →
Key takeaways
- Table 15 explains the 14R against 14S difference; Table 16 carries the resulting tax payable.
- A positive difference means ineligible credit availed, or credit booked but not availed and now lapsed.
- A negative difference generally means credit booked this year and claimed next year — correlate with Table 13 of GSTR-9.
- Table 15 cannot be validated independently — the reasons must be explained.
- Table 16 takes both ITC 1 (Table 12F) and ITC 2 (Table 14T) and "should ideally be equal to the total of the differences of the two Tables (when positive)".
- Only positive differences are payable; there is no negative row.
- Table 16 uniquely requires interest and penalty on a credit difference — interest under section 50(3) where credit was utilised, penalty under section 73 or 74.
- Utilised ineligible credit must be paid in cash through DRC-03; unutilised credit can be reversed.
- The same event may appear in both differences but is paid once.
- Table 16 and Table 11 are summarised in Part V, both payable through the cash ledger.
Read next
- GSTR-9C Part V: Additional Liability and DRC-03
- GSTR-9C Table 14: Expense-Head-Wise ITC Reconciliation
- GSTR-9C Table 12: Reconciliation of Net Input Tax Credit
Disclaimer: Positions stated as on 5 September 2026, based on Form GSTR-9C and its instructions, sections 50, 73 and 74 of the CGST Act, 2017, rule 88B of the CGST Rules, 2017 and Form GST DRC-03, as reproduced in the ICAI Technical Guide on GST Reconciliation Statement (Form GSTR-9C).