Summary: – A very needful initiative has been taken by the department, keeping in view the last time, to make corrections for FY 2023-24. The department has given the last chance to make correction in the amount reporting as opening balance of ITC Reversal as on 31st Aug 2023.
The Government introduced a few changes in reporting of ITC in Table 4 of Form GSTR-3B vide Notification No. 14/2022 – Central Tax dated 05th July, 2022 (read with circular 170/02/2022-GST, Dated 6th July,2022), where, the re-claimable ITC earlier reversed in Table 4(B)(2) of GSTR 3Bs 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).
Being such reporting new, taxpayers made mistakes in reporting and invited unnecessary clarification by the department.
Thus, to further assist the taxpayer to make correction in reporting made in GSTR 3B, the department introduced a new ledger namely Electronic Credit Reversal and Re-claimed Statement on the GST portal from August 2023 return period for monthly taxpayers and from July-September 2023 quarter for quarterly taxpayers, where the taxpayers were given an opportunity to report their cumulative ITC reversal as an opening balance as on 31st Aug 2023.
The window was closed as of now and no changes were allowed to be made to the balance reported.
Final Chance to make correction in reporting ITC opening balance:
Now, 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.
Due date for reporting the opening balance is mentioned below: –
(i) The functionality to report the opening balance will be available from 15th September 2024 to 31st October 2024.
(ii) The amendments in the declared opening balance will be available till 30th November 2024.
Period to consider for computing the opening balance: –
- 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.
- 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 2023return period only. As after this period balance is already available in ledger.
Importance to Note
It may be the case that soon department may plan to 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.
For further information please click below link for detailed advisory on Electronic Credit Reversal and Re-claimed Statement.
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