Introduction: The Goods and Services Tax Return-3B (GSTR-3B) is a crucial document for taxpayers. Part 4 specifically deals with Eligible Input Tax Credit (ITC), breaking down various aspects. This article provides a comprehensive guide on how to fill up the details in GSTR-3B Part 4, focusing on Table 4 and its implications.

Format of Table 4 of GSTR-3B- Eligible ITC

Table No Description Commentary
4A ITC Available whether in Full or in Part( Total of 1 to 5)

1. Import of Goods

2. Import of Services

3. Inward Supply liable to reverse charge

4. Inward supplies from ISD

5.  All other ITC

>> Auto populated from 2B

>>Auto populated from 2B including in-Eligible ITC with credit notes of suppliers netted off. Un available ITC due to the period of limitation (GSTR-1 return filed by Supplier after due date) and PoS rule is not auto populated. + ITC to be Reclaimed in this tax period if any which was reported in 4B(2) of earlier tax period as Temporary Reversals must be reported

4B ITC Reversed (Total of 1 to2)

1. As per Rule 38(For Banking Co), Rule 42 (Goods used partly for business and partly for exempt supply) and Rule 43 (Capital Goods used partly for business and partly for exempt supply & Sec 17(5) ( In Eligible ITC of Blocked Credits)

2. Others (Rule 37- Non-payment of consideration to seller within 180D, Rule 37A-Non-payment of tax by supplier in 3B by Sept 30th of the succeeding FY for the GSTR-1 filed for such FY( to be reversed by 30th Nov of the succeeding FY), Sec 16(2)(b)- Goods/Invoice not being Received, 16(2)(c)-Non-payment of tax by supplier in 3B)+ Reversal of any ITC wrongly availed in Table 4A(5) of the earlier tax period)

>> Reversal of Ineligible ITC in this Part 4B due to all ITC Including Ineligible ITC is reported in Pat 4A >>Permanent Reversals>>Report all non-reclaimable ITC included in 4 above-ITC on goods used for personal use, ITC on Motor Vehicles sub to Conditions, Insurance premium, Club Membership etc.

>>Temporary Reversals>>Report all reclaimable ITC such that ITC recorded in 2B of current tax period but which not claimed in 3B of the current tax period but which are to be claimed back as ITC in GSTR-3B in 4A(5) of the coming tax period

4C Table Net ITC Available(4A-4B) >> Amount credited to Electronic Credit Ledger
4D Other Details ( 1 & 2)

1. ITC reclaimed which was reversed under Table 4(b)(2) in earlier Tax Period

2. Non-eligible ITC under Sec 16(4) and ITC restricted due to PoS Rules

>> Report all reclaimed ITC in the current tax period which was reported in 4A(5) of current tax period

>>Report ITC not claimable by Law. , ITC on Invoices or Debit Notes not claimed by 30th Nov of the following FY or Annual Return whichever is earlier, ITC restricted due to PoS Rule Eg. Hotel say in another state (ITC reported as non-available in 2B)

Note: ITC claimed in 4A(5) should not exceed ITC reported in 2B and ITC balance to be reclaimed as per ECRRS.

Note: ITC reclaimed in 4D(1) should not exceed the balance in ECRRS.

Conclusion: Filling up GSTR-3B Part 4, particularly Table 4, requires a nuanced understanding of eligible ITC. This article has lucidly explained each component, from ITC availability to reconciliation and compliance. Following these guidelines ensures accurate reporting and adherence to legal requirements, facilitating a seamless GST return filing process for businesses. Stay informed, stay compliant!

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March 2024