GST UPDATE

???? CA. Praveen Sharma Ki Desk Se ?????

Re-opening of Reporting ITC Reversal Opening Balance

?As per Notification No. 14/2022 – Central Tax dated 5th July 2022 (and Circular 170/02/2022-GST dated 6th July 2022), changes were introduced in Table 4 of GSTR-3B for reporting ITC availment, reversal, and re-claimed ITC. Taxpayers could re-claim ITC reversed in Table 4(B)2 by reporting it in Table 4(A)5 upon meeting necessary conditions, with the reclaimed ITC also reported in Table 4D(1).

?To assist taxpayers in accurately reporting ITC reversals and reclaims, the Electronic Credit Reversal and Reclaimed Statement ledger was introduced starting from the August 2023 return period for monthly taxpayers and from the July-September 2023 quarter for quarterly taxpayers. Taxpayers were also given the option to report cumulative ITC reversal as an opening balance in this ledger.

?Extension of Due Dates for Reporting Opening Balance: 3. Taxpayers are now given a final chance to report their cumulative ITC reversal as an opening balance before the ledger is hard-locked. Key dates for reporting are:

?The functionality to report the opening balance will be available from 15th September 2024 to 31st October 2024.

Amendments to the declared opening balance can be made until 30th November 2024.

?Monthly taxpayers should report ITC reversals up to July 2023, as balances after this period are already available in the ledger.

?Quarterly taxpayers should report up to Q1 of FY 2023-24 (April-June 2023).

?After this period, the system will not allow re-claim of ITC beyond the amount reversed, and taxpayers will be restricted to reclaiming ITC within the available balance in their Electronic Credit Reversal and Reclaimed Statement.

?For further information, please refer to the detailed advisory on the Electronic Credit Reversal and Reclaimed Statement.

CA. Sharma Praveen

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