Date: August 23rd, 2024
To assist taxpayers in accurately reporting Reverse Charge Mechanism (RCM) transactions, a new statement called the “RCM Liability/ITC Statement” has been introduced on the GST Portal. This statement aims to enhance accuracy and transparency by capturing the RCM liability shown in Table 3.1(d) of GSTR-3B and its corresponding Input Tax Credit (ITC) claimed in Table 4A(2) and 4A(3) of GSTR-3B for a return period.
Applicability:
- Monthly filers: From the tax period August 2024 onwards.
- Quarterly filers: From the quarter July-September 2024.
Accessing the Statement:
- Navigate to:
Services >> Ledger >> RCM Liability/ITC Statement.
Reporting Opening Balance in RCM ITC Statement:
- Navigation:
Login >> Report RCM ITC Opening BalanceorServices >> Ledger >> RCM Liability/ITC Statement >> Report RCM ITC Opening Balance. - Excess RCM liabilities paid: Report as a positive value if not availed as ITC.
- Excess RCM ITC claimed: Report as a negative value if not paid as liability.
- Reclaiming reversed RCM ITC: Eligible ITC can be reclaimed in Table 4A(5) of GSTR-3B, not through Table 4(A)2 and 4(A)3.
Reconciliation for Opening Balance:
- Monthly filers: Report considering RCM ITC till the July 2024 return period.
- Quarterly filers: Report up to Q1 of FY 2024-25, considering RCM ITC till the April-June 2024 return period.
Deadlines:
- Declare Opening Balance: By October 31, 2024.
- Amendments: Errors can be rectified until November 30, 2024, with up to three opportunities for amendments. This facility will be discontinued after November 30, 2024.
Note: This statement is designed to streamline the process and ensure that taxpayers can accurately report and claim their RCM liabilities and ITC, thereby improving compliance and reducing errors.