The Goods and Services Tax Network ( GSTN ) has issued an advisory regarding extension for taxpayers to report their cumulative Goods and Services Tax ( GST ) Input Tax Credit ( ITC ) reversal as an opening balance. This initiative, effective from the 15th of September 2024, allows taxpayers a window until the 31st of October 2024 to declare any ITC that was reversed but remains unclaimed.
This follows amendments that were introduced via Notification No. 14/2022 – Central Tax and circular 170/02/2022-GST, which revised the reporting requirements in Form GSTR-3B concerning ITC availing, reversal, and re-claiming.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here.
Notably, re-claimable ITC previously reversed can now be claimed under specific conditions, with corresponding reporting obligations in Table 4 of the form.
To aid in accurate reporting and minimise errors, the GST portal introduced the Electronic Credit Reversal and Re-claimed Statement ledger from the August 2023 return period for monthly filers and the July-September 2023 quarter for quarterly filers. This ledger allows taxpayers to report their cumulative ITC reversal as an opening balance, ensuring clarity in financial statements.
Taxpayers must report their opening balance from 15th September 2024 to 31st October 2024 and Amendments to the declared opening balance can be made until 30th November 2024.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here.
Monthly Filers should report ITC reversal up to the July 2023 return period. Quarterly Filers should report ITC reversal up to the April-June 2023 return period.
With the impending hard-locking of the reversal and reclaim ledger, taxpayers are advised to utilise this extension diligently. After the specified period, the system will restrict the reclaim of ITC exceeding the amount previously reversed, emphasising the importance of accurate and timely reporting.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here.
For detailed guidance on the Electronic Credit Reversal and Re-claimed Statement, taxpayers are encouraged to refer to the advisory provided here.
For further inquiries, please visit the official GST Portal and GSTN website.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
