The government is stepping up its game in the world of taxation with some exciting updates
to Form GSTR-3B. These changes are all about making sure that Input Tax Credit (ITC) reporting
is more accurate than ever before. All of this owes to Notification No. 14/2022 – Central Tax,
dated July 5, 2022, and Circular 170/02/2022-GST, dated July 6, 2022. These documents have
paved the way for some big improvements.
A fantastic new tool is coming to the GST portal that will be a game-changer for taxpayers. It’s
called the “Electronic Credit Reversal and Re-claimed Statement,” and it’s designed to help
taxpayers keep track of ITC that they’ve reversed and then reclaimed in various sections of
GSTR-3B.
This statement will be effective from the August 2023 return period. The new statement aims to
ensure that the amount reclaimed in Table 4(A)5 aligns correctly with the reversed ITC in Table
4(B)(2) of Form GSTR-3B, enhancing the consistency and correctness of ITC reversal and reclaims. Taxpayers can report their cumulative ITC reversed and not re-claimed till 31.07.2023
as an opening balance for the “Electronic Credit Reversal and Re-claimed Statement.”
Quarterly taxpayers should report said amount for balance outstanding as on 31.06.2023. Last
date to report said opening balance is 30th November 2023. Three amendments are allowed
till 31st December 2023, however, opening balance should be reported once atleast once on
or before 30th November 2023.
The updated GSTR-3B comprises all that one needs. It comes with a validation mechanism that
will give a warning if one tries to reclaim more ITC than actually reversed. Therefore, it is
recommended to report ITC reversed but re-claimable, under table no. 4(B)(2) of Form GSTR3B.
| SW Point of View: From a taxpayer’s perspective, the recent changes to Form GSTR-3B are a welcome move towards smoother tax reporting. These changes, prompted by Notification No. 14/2022 – Central Tax and Circular 170/02/2022-GST, aim to revolutionize Input Tax Credit (ITC) reporting. A new ITC ledger on the GST portal will simplify tracking ITC reversals and reclaims, effective from August 2023. A validation mechanism in the form warns against reclaiming more ITC than available in the reversal balance, enhancing accuracy. Warning messages start in August 2023 for monthly taxpayers and during the July to September 2023, filing period for quarterly taxpayers. These changes signify a significant step towards precision and transparency in ITC reporting, benefiting taxpayers with a streamlined process.” |
