GSTN Press Release dated 17th February 2023
Introduction of Negative Values in Table 4 of GSTR-3B
1. The Government vide Notification No. 14/2022 – Central Tax dated 05th July, 2022 has notified few changes in Table 4 of Form GSTR-3B for enabling taxpayers to report correct information regarding ITC availed, ITC reversal and ineligible ITC in Table 4 of GSTR-3B. According to the changes, the net ITC is to be reported in Table 4(A) and ITC reversal, if any, is to be reported in Table 4(B) of GSTR-3B.
2. Currently in GSTR-3B, credit note (CN) is being auto-populated in Table 4B(2), as ITC reversal. Now in view of the said changes, the impact of credit notes are also to be accounted on net off basis in Table 4(A) of GSTR-3B only. Accordingly following changes have been made in the GST Portal from January-2023 period onwards and shall be applicable from tax period – January 2023’ onwards.
a. The impact of credit note & their amendments will now be auto-populated in Table 4(A) instead of Table 4(B) of GSTR-3B. In case the value of credit notes becomes higher than sum of invoices and debit notes put together, then the net ITC would become negative and the taxpayers will be allowed to report negative values in Table-4A. Also, taxpayers can now enter negative values in Table 4D(2) of GSTR-3B.
b. Consequent updates/ modification in the advisory, messages, instructions, and help-text in form GSTR-2B, without any structural changes in form GSTR-2B summary or tables have also been done in GSTR-2B.
c. The calculation logic of Comparison Report has now been changed accordingly.
3.The taxpayers are advised to go through instructions/help text carefully in GSTR-2B & System Generated GSTR-3B pdf before filing GSTR-3B.
Team GSTN | 17/02/2023
Analysis of above press Release
Now onwards all dealers are requested to show detailed reconciliation of GSTR3B INPUT TAX CREDIT (ITC) as per auto generated GSTR-2B.
ITC RECONCILIATION IN 3B as per GSTR-2B for a said period:-
4(A)ALL OTHER ITCà TOTAL VALUE OF ITC(B2B+B2BA) AS PER 2B of the said month without considering the RCM shown in 2B + ITC of previous month to be claim – NET CDNR (TOTAL CREDIT NOTE OF 2B)* NEW CHANGES
LESS: 4(B)(1) – ITC NOT CLAIMED NOW AND NEVER WILL BE CLAIMED IN THE FUTURE (PERMANENT REVERSAL)
LESS:4(B)(2)- ITC NOT NOW BUT WOULD BE CLAIM IN THE FUTURE (TEMPORARY REVERSAL)
= THE NET ITC TO BE TAKEN IN THE SAID PERIOD 4(C)
*NOTE- Everyone have to mandatorily mention the ITC of previous month which would be claim in the current month in OTHER DETAILS 4(D)
You are requested to follow the new method for reconciling the ITC or else it would be a violation of law.