GST Date extension for reporting opening balance for ITC reversal

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The taxpayers’ ease in accurately reporting the reversal and reclamation of Input Tax Credit (ITC) is a priority. The GST portal has introduced a new ledger, namely the Electronic Credit and Reclaimed Statement, to mitigate clerical errors. This statement aids taxpayers in monitoring ITC reversed in Table 4B(2) and subsequently reclaimed in Tables 4D(1) and 4A(5). For detailed guidance, refer to the earlier provided advisory accessible here.

To further simplify processes for taxpayers, the opportunity to declare the opening balance for ITC reversal in the statement is now extended until January 31, 2024.

It’s important to note that following the declaration of the opening balance for ITC reversal, only three amendment opportunities will be granted for correcting any mistakes or inaccuracies in reporting.

The window for amending the declared opening balance for ITC reversal will be accessible until February 29, 2024.

Your cooperation is appreciated.

Team GSTN

Introduction of Electronic Credit Reversal and Re-claimed Statement on GSTN:The Government has introduced changes in Table 4 of Form GSTR-3B to enhance the accuracy of reporting regarding ITC availed, ITC reversal, ITC re-claimed, and ineligible ITC. Refer to Notification No. 14/2022 – Central Tax dated 05th July, 2022, along with circular 170/02/2022-GST, Dated 6th July, 2022.
Purpose and Implementation of the Electronic Credit and Re-claimed Statement:To facilitate correct reporting and prevent clerical errors, a new ledger named Electronic Credit and Re-claimed Statement is introduced on the GST portal. This statement aids in tracking ITC reversed in Table 4B(2) and subsequently re-claimed in Table 4D(1) and 4A(5) for each return period starting from August 2023.
Facility for Reporting Cumulative ITC Reversal Opening Balance:Taxpayers are provided with a facility to report their cumulative ITC reversal as an opening balance for the “Electronic Credit Reversal and Re-claimed Statement.” Monthly taxpayers report their balance considering ITC reversal till the return period of July 2023, while quarterly taxpayers report up to Q1 of the financial year 2023-24, considering reversal till the April-June 2023 period. Reporting and amendment facilities are available until November 30, 2023.
Amendment Opportunities and Warning Mechanism:Taxpayers have three opportunities for amendments to correct their opening balance until November 30, 2023. Amendments are permitted until December 31, 2023. The portal will maintain a record of reversal and re-claimed amounts, triggering a warning message if a taxpayer attempts to re-claim excess ITC in Table 4D(1) than the available ITC reversal balance. This validation starts from the GSTR-3B filing for August 2023 for monthly taxpayers and from the filing period covering July to September 2023 for quarterly taxpayers.

Note: The amendment facility is discontinued after December 31, 2023.