Re-opening of Reporting ITC Reversal Opening Balance
17/09/2024
1. Vide
Notification No. 14/2022
- Central Tax dated 05th July, 2022 (read with
circular 170/02/2022-GST, Dated
6th July,2022), the Government introduced certain changes in Table 4 of
Form
GSTR-3B regarding availment & reversal of ITC along-with reporting of re-claimed
and ineligible ITC. Accordingly, the re-claimable ITC earlier reversed in Table
4(B)2 may be subsequently claimed in Table 4(A)5 on fulfilment of necessary
conditions and such reclaimed ITC also needs to be reported in Table 4D(1).
2. To facilitate the taxpayers in correct and accurate reporting of ITC reversal
and reclaim thereof and to avoid clerical mistakes, a new ledger namely
Electronic Credit Reversal and Re-claimed Statement was introduced on the
GST portal from August 2023 return period for monthly taxpayers and from
July-September 2023 quarter for quarterly taxpayers. The taxpayers were also
given an opportunity to report their cumulative ITC reversal as an opening
balance in the newly introduced Electronic Credit Reversal and Re-claimed
Statement.
Extension of due dates for reporting opening balance:
3. Now, the Taxpayers are being provided with one final opportunity to report
their cumulative ITC reversal (ITC that has been reversed earlier and has not
yet been reclaimed) as opening balance for "Electronic Credit Reversal and
Re-claimed Statement", if any, before hard locking the reversal and reclaim
ledger. Please note the important dates to report opening balance are mentioned
below.
(i) The functionality to reporting the opening balance will be available from 15th September 2024 to 31st October 2024.
(ii) The amendments in declared opening balance will be available till 30th November, 2024.
(iii) Taxpayers having monthly filing frequency are required to report their opening balance considering the ITC reversal done till the return period of July 2023 only. As after this period balance is already available in ledger.
(iv) Quarterly taxpayers shall report their opening balance up to Q1 of the financial year 2023-24, considering the ITC reversal made till the April-June 2023 return period only. As after this period balance is already available in ledger.
4. It may be noted that soon
system would not allow to re-claim of ITC in excess of the amount reversed
earlier and the taxpayers will not be able to reclaim excess ITC compared to the
balance available in their Electronic Credit Reversal and Re-claimed
Statement. Therefore, it is advised to make use of this extended period
to ensure that all relevant information is reported accurately.
5.For further information please click below link for detailed advisory on
Electronic Credit Reversal and Re-claimed Statement:
https://tutorial.gst.gov.in/downloads/news/itc_pending_ledger.pdf
Thanks,
Team GSTN