GSTN introduces new Electronic Credit and Re-claimed Statement

 

This Tax Alert summarizes a recent update ^[1] issued by the Goods and Services Tax Network (GSTN) regarding the introduction of the Electronic Credit and Re-claimed Statement.

Earlier, the Government had notified ^[2] changes in table 4 of GSTR-3B to enable taxpayers to correctly report information regarding input tax credit (ITC) availed (table 4A), reversed [table 4B(1) and 4B(2)] and re-claimed [table 4D(1) and 4A(5)].

A new “Electronic Credit and Re-claimed Statement” is introduced on the GST portal to help taxpayers in tracking their ITC that has been reversed in table 4B(2) (temporary reversals, for e.g., reversal on account of non-payment to suppliers within 180 days) and thereafter re-claimed in table 4D(1) and 4A(5).

Taxpayers are provided a facility to report their cumulative ITC reversal done till date (which has not been re-claimed yet) as opening balance in the Statement.  Three amendment opportunities are allowed to correct such balance. The above functionality is implemented as per the following timelines:

 

Particulars	Monthly return filers	Quarterly return filers
Available from	August 2023 return period	July-September 2023 return period
Opening balance	ITC reversed till July 2023 return period	ITC reversed till April-June 2023 return period
Last date to report opening balance	30 November 2023
Last date to amend opening balance	31 December 2023

 

Further, a validation mechanism is incorporated in GSTR-3B to trigger a warning message if a taxpayer attempts to re-claim excess ITC than the reversal balance available in the statement. In such case, the taxpayer will still have the option to proceed with filing the said return.

[1] Dated 31 August 2023

[2] Notification No. 14/2022 – Central Tax dated 5 July 2022 read with Circular 170/02/2022-GST dated 6 July 2022