Re-opening of Reporting ITC Reversal Opening Balance

18Sep 2024 by admin
  1. Notification No. 14/2022 – Central Tax: Issued on July 5, 2022, this notification introduced changes in Table 4 of Form GSTR-3B. These changes pertain to the availment and reversal of ITC, as well as the reporting of reclaimed and ineligible ITC. Reclaimable ITC that was earlier reversed in Table 4(B)2 can now be claimed in Table 4(A)5 upon fulfilling necessary conditions and must also be reported in Table 4D(1) 1.
  2. Electronic Credit Reversal and Re-claimed Statement: To aid taxpayers in accurate ITC reporting and to minimize clerical errors, a new ledger called the Electronic Credit Reversal and Re-claimed Statement was introduced on the GST portal. This ledger has been available since August 2023 for monthly taxpayers and from the July-September 2023 quarter for quarterly taxpayers. Taxpayers were given the opportunity to report their cumulative ITC reversal as an opening balance in this new ledger.
  3. Extension of Due Dates: Taxpayers now have a final opportunity to report their cumulative ITC reversal as an opening balance in the Electronic Credit Reversal and Re-claimed Statement before the ledger is hard-locked. The key dates are:
    • 15th September 2024 to 31st October 2024: Period for reporting the opening balance.
    • Till 30th November 2024: Period for amending the declared opening balance.
    • Monthly taxpayers: Must report their opening balance considering ITC reversal done till the return period of July 2023.
    • 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 2023 return period only. As after this period balance is already available in ledger.
  • It may be noted that soon system would 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: https://tutorial.gst.gov.in/downloads/news/itc_pending_ledger.pdf