RCM Liability & ITC Statements facility Introduced on GST portal as on 23rd August 24

Summary: The GST portal has introduced a new facility for RCM Liability and ITC Statements, effective from 23rd August 2024 to 30th November 2024, to improve the accuracy and transparency of reverse charge mechanism (RCM) transactions. This facility captures RCM liabilities reported in Table 3.1(d) and corresponding Input Tax Credit (ITC) claimed in Tables 4A(2) and 4A(3) of GSTR-3B for the relevant tax period. Applicable from the August 2024 tax period for monthly filers and the July-September 2024 period for quarterly filers, taxpayers can now report the opening balance for RCM ITC. The facility accommodates adjustments for excess RCM liabilities paid or ITC claimed. Taxpayers can declare their opening balance until 31st October 2024 and make amendments by 30th November 2024. Reconciliation should be done for monthly filers up to the July 2024 period and for quarterly filers up to the April-June 2024 period. This initiative is accessible via the GST portal under “Services >> Ledger >> RCM Liability / ITC Statement” and helps streamline the reporting and reconciliation of RCM transactions for enhanced compliance. Also Read: New RCM Liability/ITC Statement on GST Portal

Availability of this facility: 23^rd August 2024 to 30^th November 2024

Purpose of the facility:

• To enhance accuracy and transparency for RCM transactions by capturing the RCM liability shown in Table 3.1 (d) of GSTR – 3B and its corresponding ITC claimed in Table 4A (2) and 4A (3) of GSTR – 3B for a return period

Applicability:

• This statement will be applicable from tax period August 2024 onwards for monthly filers and from the quarter, July-September-2024 period for quarterly filers.

Portal Link:

• Services >> Ledger >> RCM Liability / ITC Statement.

Reporting:

Reporting Link:

• Login >> Report RCM ITC Opening Balance or Services >> Ledger >> RCM Liability / ITC Statement >> Report RCM ITC Opening Balance.

Reporting Opening Balance in RCM ITC Statement

• In case the taxpayers have already paid excess RCM liabilities by declaring the same in Table 3.1(d) of GSTR-3B however he hasn’t availed corresponding ITC through Table 4(A)2 or 4(A)3 of GSTR-3B, due to any reason, in such cases taxpayer need to fill Positive value of such excess paid liability as RCM ITC as opening balance in RCM statement.
• In case the taxpayers have already availed excess RCM ITC through Table in Table 4(A)2 or 4(A)3 of GSTR-3B however he hasn’t paid corresponding liability by declaring the same in table 3.1(d) of GSTR-3B, in such cases taxpayer will be needed to fill a negative value of such excess claimed ITC as RCM as opening balance in RCM Statement.
• In case taxpayer need to reclaim the RCM ITC, which was reversed in earlier tax periods through Table 4(B)2 of GSTR-3B, if eligible, he can reclaim such RCM ITC in Table 4A(5) of GSTR-3B. Please note that such RCM ITC shall not be reclaimed through Table 4(A)2 and 4(A)3 of GSTR-3B. Such RCM ITC reversal need not to be reported as RCM ITC opening balance.

Reconciliation with tax statement:

• 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: Opening balance can be declared till 31.10.2024.
• Amendments in Opening Balance: Taxpayers can rectify any errors committed while declaring the opening balance on or before 30.11.2024, he shall be provided three opportunities for the same.