To assist taxpayers in accurately reporting Reverse Charge Mechanism (RCM) transactions, a new statement called the “RCM Liability/ITC Statement” has been introduced on the GST Portal. This statement aims to enhance accuracy and transparency by capturing the RCM liability shown in Table 3.1(d) of GSTR-3B and the corresponding ITC claimed in Table 4A(2) and 4A(3) of GSTR-3B for a specific return period.
The statement will be applicable from the tax period of August 2024 onwards for monthly filers and from the July-September 2024 period for quarterly filers.
The RCM Liability/ITC Statement can be accessed using the following navigation:
Services >> Ledger >> RCM Liability/ITC Statement.
Reporting Opening Balance in RCM ITC Statement
The opening balance for RCM ITC can be reported by following the steps below:
Login >> Report RCM ITC Opening Balance or Services >> Ledger >> RCM Liability/ITC Statement >> Report RCM ITC Opening Balance
- Excess RCM Liability Paid: If the taxpayer has paid excess RCM liabilities by declaring the same in Table 3.1(d) of GSTR-3B but has not availed the corresponding ITC through Table 4(A)2 or 4(A)3 of GSTR-3B, the taxpayer needs to fill in a positive value of such excess paid liability as RCM ITC in the opening balance of the RCM statement.
- Excess RCM ITC Claimed: If the taxpayer has availed excess RCM ITC through Table 4(A)2 or 4(A)3 of GSTR-3B but has not paid the corresponding liability by declaring the same in Table 3.1(d) of GSTR-3B, the taxpayer needs to fill in a negative value of such excess claimed ITC as RCM in the opening balance of the RCM statement.
- Reclaiming RCM ITC: If the taxpayer needs to reclaim the RCM ITC that was reversed in earlier tax periods through Table 4(B)2 of GSTR-3B, they can reclaim such RCM ITC in Table 4A(5) of GSTR-3B if eligible. Note that such RCM ITC shall not be reclaimed through Table 4(A)2 and 4(A)3 of GSTR-3B, and this reversal does not need to be reported as an RCM ITC opening balance.
Table 3 of GSTR-3B
Table 4 of GSTR – 3B
Reconciliation for Opening Balance Till Tax Period:
- Monthly Filers: Report the opening balance considering RCM ITC till the July 2024 return period.
- Quarterly Filers: Report the opening balance up to Q1 of FY 2024-25, considering RCM ITC till the April-June 2024 return period.
Deadline to Declare Opening Balance: The opening balance can be declared until 31.10.2024.
Amendments in Opening Balance: Taxpayers can rectify any errors made while declaring the opening balance on or before 30.11.2024. Three opportunities will be provided for the same.
This amendment facility will be discontinued after 30.11.2024.
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