New Feature on the GST Portal: Electronic Credit Reversal and Reclaimed Statement

Taxpayers can be informed about their starting balance until November 30, 2023. After this date, they won't be able to report it anymore, and it will be assumed that they have no ITC Reversal Balance to report. 

The Electronic Credit Reversal and Reclaimed Statement will display the Input Tax Credit (ITC) claimed, reversed, and reclaimed during a specific return period.

You'll find this information in Tables 4A(5), 4B(2), and 4D(1) of form GSTR-3B.

In the Closing Balance part of the statement, you'll see how much of the ITC Reversal balance is left and can still be used in form GSTR-3B.

Guidelines for Reporting ITC Reversal Opening Balance

Please carefully review the following guidelines before proceeding to report your ITC Reversal opening balance:

1. Taxpayers can use this feature to report their ITC Reversal Balance that hasn't been reclaimed.

2. It is advised to report only those ITC reversal balances that meet the legal criteria for re-claim and haven't been previously claimed.

3. You can report your opening balance until November 30, 2023. After this date, you won't be able to report it, and it will be assumed that you have no ITC Reversal Balance to report.

4. You can make amendments to your opening balance until December 31, 2023. Any reported balance after this date will be considered final and cannot be changed.

5. After December 31, 2023, the updated value will be locked, and you won't have any further opportunities to amend your ITC Reversal Balance. This value will be sent to the Jurisdictional Tax Officer for review

6. Be cautious while reporting or amending the ITC reversal opening balance because you are allowed only three amendments.

7. The opening balance you report or amend will be recorded in the "Electronic Credit Reversal and Re-claimed Statement." This statement will be used to verify the ITC reclaimed amount in Table 4A(5) and 4D(1) of form GSTR-3B.

Note: Use this functionality only if you have an eligible ITC reversal balance that has not been reclaimed yet.

Also Read: CBIC Issues Advisory on Process For GST Provisional Attachment Under Section 83(2)

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