In a move aimed at facilitating taxpayers and ensuring accurate reporting of Input Tax Credit (ITC) reversal, the Goods and Services Tax (GST) authorities have introduced a new ledger named the Electronic Credit and Re-claimed Statement on the GST portal. This ledger serves as a tool for taxpayers to track ITC that has been reversed in Table 4B(2) and subsequently reclaimed in Tables 4D(1) and 4A(5).

Key Points:

1. Introduction of Electronic Credit and Re-claimed Statement: To enhance the accuracy of ITC reporting and prevent clerical errors, the GST portal now features the Electronic Credit and Re-claimed Statement. This tool is designed to assist taxpayers in monitoring the reversal and reclaim of Input Tax Credit.

2. Extension of Deadline for Declaring Opening Balance: In an effort to provide further support to taxpayers, the deadline for declaring the opening balance for ITC reversal in the Electronic Credit and Re-claimed Statement has been extended. Taxpayers now have until 31st January 2024 to declare the opening balance.

3. Limited Amendment Opportunities: After declaring the opening balance for ITC reversal, taxpayers will have only three opportunities for amendments. These opportunities are provided to correct any mistakes or inaccuracies in the initially reported opening balance.

4. Deadline for Amending Opening Balance: The facility to amend the declared opening balance for ITC reversal will be available until 29th February 2024. Taxpayers are encouraged to review and make any necessary corrections within this timeframe.

Conclusion:

This extension of the deadline and the introduction of the Electronic Credit and Re-claimed Statement demonstrate the authorities' commitment to ensuring a smooth and accurate process for reporting Input Tax Credit reversal. Taxpayers are encouraged to take advantage of the additional time provided and make any necessary declarations and amendments within the stipulated deadlines.

For further details and guidance, taxpayers can refer to the detailed advisory provided by the GST authorities.

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Goods And Services Tax

Advisory: Date extension for reporting opening balance for ITC reversal

29/12/2023

1. In order to facilitate the taxpayers in correct and accurate reporting of ITC reversal and reclaim thereof and to avoid clerical mistakes, a new ledger namely Electronic Credit and Re-claimed Statement was introduced on the GST portal. This statement was made available to help the taxpayers in tracking their ITC that has been reversed in Table 4B(2) and thereafter re-claimed in Table 4D(1) and 4A(5).  Kindly  click here for the detailed advisory provided earlier.

2. Now to facilitate taxpayers further, opportunity to declare opening balance for ITC reversal in the statement has been extended till 31st January, 2024.

3. Kindly note that after declaring the opening balance for ITC reversal, only three amendment opportunities post the declaration will be provided to correct declared opening balance in case of any mistakes or inaccuracies in reporting.

4. Facility to amend declared opening balance for ITC reversal will be available till 29th February, 2024.