CBIC vide Notification No. 14/2022 Central Tax dated 05.07.2022 has provided for certain changes in FORM GSTR-3B so as to enable the taxpayers in reporting correct information regarding Input Tax Credit (ITC) availed, ITC reversal, ITC re-claimed and ineligible ITC.
Currently, the invoices not meeting the necessary conditions for availing ITC shall be reversed in Table 4B(2) of FORM GSTR-3B, which can be re-claimed subsequently in Table 4A(5) on the fulfilment of necessary conditions. Such reclaimed ITC in Table 4A(5) also needs to be explicitly reported in Table 4D(1).
- CBIC has issued an advisory dated 31.08.2023 to introduce a new ledger, Electronic Credit Reversal and Re-claimed Statement on the GST portal, to facilitate the taxpayers in correct and accurate reporting of ITC reversal and reclaim thereof.
- This statement will help the taxpayers in tracking their ITC that has been temporarily reversed in Table 4B(2) and thereafter re-claimed in Table 4D(1) and 4A(5) for each return period, starting from August 2023.
- This statement will be used to validate the taxpayer’s ITC reclaimed amount in Table 4A(5) and 4D(1). A validation mechanism is also incorporated into the GSTR-3B form which will trigger a warning message if a taxpayer attempts to re-claim excess ITC in Table 4D(1) than the available ITC reversal balance in the Electronic Credit Reversal and Re-claimed statement along with ITC reversal made in current return period in Table 4B(2).
- Taxpayers are required to report the cumulative amount of ITC reversal, i.e., ITC that has been reversed earlier and not yet reclaimed, as the opening balance for Electronic Credit Reversal and Re-claimed Statement.
· Taxpayers having monthly filing frequency are required to report their opening balance considering the ITC reversal done till the return period of July 2023.
· Taxpayers having quarterly filing frequency shall report their opening balance up to Q1 of the financial year 2023-24, considering the ITC reversal made till the April to June 2023 return period.
Last date for reporting of cumulative amount:-
- The last date for declaring the opening balance for ITC reversal in Electronic Credit Reversal and Re-claimed Statement is 30.11.2023.
- The amount declared as opening balance for ITC reversal can be amended upto 3 times in order to avoid any mistakes or inaccuracies in reporting. This amendment facility shall be discontinued after 31st December 2023, i.e. the amendment in the opening balance for ITC reversal can only be made upto 31.12.2023.
Period of Operation for the period going forward:-
The statement is operational from:
- For monthly filers: August 2023 return period.
- For quarterly filers: Quarter pertaining to July to September 2023 return period.
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