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
No comments:
Post a Comment