{"id":9315,"date":"2023-08-31T07:59:11","date_gmt":"2023-08-31T06:59:11","guid":{"rendered":"https:\/\/www.klickongstworld.com\/blog\/?p=9315"},"modified":"2023-09-01T03:39:38","modified_gmt":"2023-09-01T02:39:38","slug":"gstn-issued-important-advisory-on-reporting-of-itc-reversal-opening-balance","status":"publish","type":"post","link":"https:\/\/www.klickongstworld.com\/blog\/gstn-issued-important-advisory-on-reporting-of-itc-reversal-opening-balance\/","title":{"rendered":"GSTN issued Important Advisory on Introducing Electronic Credit Reversal and Reclaimed Statement"},"content":{"rendered":"<style type=\"text\/css\">\n<!--\n.style1 {\n\tfont-weight: bold;\n\tfont-style: italic;\n}\n-->\n<\/style>\n<p align=\"justify\">The Goods and Services Tax Network has issued  an&nbsp;<a href=\"https:\/\/tutorial.gst.gov.in\/downloads\/news\/itc_pending_ledger.pdf\">Advisory dated August 31, 2023<\/a>&nbsp;on  the introduction of Electronic Credit Reversal and Re-claimed statement on the  GST Common Portal.&nbsp;<\/p>\n<p align=\"justify\">The Government has notified certain changes in  Table 4 of Form GSTR-3B to enable taxpayers in reporting correct information  regarding ITC availed, ITC reversal, ITC re-claimed and ineligible ITC vide <a href=\"https:\/\/www.klickongstworld.com\/uploads\/allied\/1657077166.pdf\">Notification No. 14\/2022 &#8211; Central Tax dated 05th July, 2022<\/a> (<em>read with <\/em><a href=\"https:\/\/www.klickongstworld.com\/uploads\/CGST\/1657124270.pdf\">circular 170\/02\/2022-GST, Dated  6th July, 2022<\/a>). Accordingly, the reclaimable  ITC earlier reversed in Table 4(B)2 may be subsequently claimed in Table 4(A)5  on fulfilment of necessary conditions. Such reclaimed ITC in Table 4(A)5 also  needs to be explicitly reported in Table 4D(1).<\/p>\n<p align=\"justify\">1) In order to facilitate the taxpayers in  correct and accurate reporting of ITC reversal and reclaim thereof and to avoid  clerical mistakes, a new ledger namely&nbsp;<strong><em>Electronic Credit and Re-claimed Statement<\/em><\/strong>&nbsp;is  being introduced on the GST portal. This statement will help the taxpayers in  tracking of their ITC that has been reversed in Table 4B(2) and thereafter  re-claimed in Table 4D(1) and 4A(5) for each return period, starting from&nbsp;<em>August return period.<\/em><\/p>\n<p align=\"justify\">2) This statement shall facilitate that while  re-claiming ITC in GSTR-3B, the amount aligns appropriately with the  corresponding reversed ITC. This aims to improve the overall consistency and  correctness of ITC reversal and re-claims related transactions. For Monthly  taxpayers, the specified return period pertains to&nbsp;August  2023.&nbsp;For those  filing quarterly returns, the specified return period corresponds to Q2 of the  financial year 2023-24, encompassing the months of&nbsp;July-  September&nbsp;2023.<\/p>\n<p align=\"justify\">3) Taxpayers are being provided a facility to  report their cumulative ITC reversal (ITC that has been reversed earlier and  has not yet been reclaimed) as opening balance for&nbsp;<strong>&#8220;Electronic Credit Reversal and  Re-claimed Statement&#8221;,<\/strong>&nbsp;if any. \n  <\/p>\n<p align=\"justify\">The navigation to report ITC reversal balance:<\/p>\n<p align=\"justify\"><strong><em>Login &gt;&gt; Report ITC  Reversal Opening Balance.<\/em><\/strong><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.klickongstworld.com\/blog\/wp-content\/uploads\/2023\/08\/31081.png\" alt=\"\" width=\"400px\"  class=\"alignnone size-full wp-image-9316\" srcset=\"https:\/\/www.klickongstworld.com\/blog\/wp-content\/uploads\/2023\/08\/31081.png 1718w, https:\/\/www.klickongstworld.com\/blog\/wp-content\/uploads\/2023\/08\/31081-300x156.png 300w, https:\/\/www.klickongstworld.com\/blog\/wp-content\/uploads\/2023\/08\/31081-1024x532.png 1024w, https:\/\/www.klickongstworld.com\/blog\/wp-content\/uploads\/2023\/08\/31081-768x399.png 768w, https:\/\/www.klickongstworld.com\/blog\/wp-content\/uploads\/2023\/08\/31081-1536x798.png 1536w\" sizes=\"(max-width: 1718px) 100vw, 1718px\" \/><\/p>\n<p align=\"justify\" class=\"style1\">or <\/p>\n<p align=\"justify\"><strong><em>Services &gt;&gt; Ledger  &gt;&gt; Electronic Credit Reversal and Re-claimed Statement &gt;&gt; Report  ITC Reversal Opening Balance<\/em><\/strong><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.klickongstworld.com\/blog\/wp-content\/uploads\/2023\/08\/31082.png\" alt=\"\" width=\"400px\" class=\"alignnone size-full wp-image-9317\" srcset=\"https:\/\/www.klickongstworld.com\/blog\/wp-content\/uploads\/2023\/08\/31082.png 1733w, https:\/\/www.klickongstworld.com\/blog\/wp-content\/uploads\/2023\/08\/31082-300x157.png 300w, https:\/\/www.klickongstworld.com\/blog\/wp-content\/uploads\/2023\/08\/31082-1024x535.png 1024w, https:\/\/www.klickongstworld.com\/blog\/wp-content\/uploads\/2023\/08\/31082-768x402.png 768w, https:\/\/www.klickongstworld.com\/blog\/wp-content\/uploads\/2023\/08\/31082-1536x803.png 1536w\" sizes=\"(max-width: 1733px) 100vw, 1733px\" \/><\/p>\n<blockquote>\n<p align=\"justify\">a.  Taxpayers having monthly filing frequency are required to report their opening  balance considering the ITC reversal done till the return period of&nbsp;July 2023.<\/p>\n<p align=\"justify\">b.  In contrast, quarterly taxpayers shall report their opening balance up to Q1 of  the financial year 2023-24, considering the ITC reversal made till the&nbsp;April-June  2023&nbsp;return period.<\/p>\n<p align=\"justify\">c. The  taxpayers have the opportunity to declare their opening balance for ITC  reversal Until&nbsp;30th November 2023.<\/p>\n<p align=\"justify\">d.  The taxpayers shall also be provided&nbsp;<strong>3 (three)<\/strong>&nbsp;amendment opportunities to  correct their opening balance in case of any mistakes or inaccuracies in  reporting. Importantly,&nbsp;<strong>until  30th November 2023, both reporting and amendment facilities are accessible.<\/strong><\/p>\n<p align=\"justify\">e.  However,&nbsp;<strong>after 30th  November till 31st December 2023, only amendments<\/strong>&nbsp;will be  permitted and the option for fresh reporting will not be available. This  amendment facility shall be discontinued after 31st December 2023.<\/p>\n<\/blockquote>\n<p align=\"justify\">4) With the provision for taxpayers to report  their accumulated ITC reversal balance, the portal will subsequently maintain a  record of reversal and re-claimed amounts on a return period basis in  statement. Hence, a validation mechanism is incorporated into the GSTR-3B form.  This validation will trigger a warning message if a taxpayer attempts to  re-claim excess ITC in table 4D(1) than the available ITC reversal balance in  the statement along with ITC reversal made in current return period in Table  4B(2). This warning message would facilitate accurate reporting but the  taxpayers will still have the option to proceed with filing. However, the  taxpayers are advised not to reclaim ITC exceeding the closing balance of  &#8220;Electronic Credit Reversal and Re-claimed Statement&#8221; and may report their  pending reversed ITC, if any, as ITC reversal opening balance.<\/p>\n<p align=\"justify\">5) For monthly taxpayers, the warning message  will commence appearing from the GSTR-3B filing for the August 2023 return  period. Similarly, for quarterly taxpayers this warning message would start  from the filing period covering July to September 2023. <\/p>\n<p align=\"justify\">&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>2023\/08\/3108.png<\/p>\n","protected":false},"author":1,"featured_media":9318,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/posts\/9315"}],"collection":[{"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/comments?post=9315"}],"version-history":[{"count":6,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/posts\/9315\/revisions"}],"predecessor-version":[{"id":9324,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/posts\/9315\/revisions\/9324"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/media\/9318"}],"wp:attachment":[{"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/media?parent=9315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/categories?post=9315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.klickongstworld.com\/blog\/wp-json\/wp\/v2\/tags?post=9315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}