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GSTN allowed Negative Values in Input Table of GSTR-3B from Jan 2023...

Highlights:

This is just a structural change in Table 4. Taxpayers will have no positive effect of this. Earlier also negative ITC was being added to output liability via reversal in Table 4B. Now negative ITC will be added to output liability directly via Table 4A. 

The said change has been done to keep in mind the numbers to be auto-populated in Table of 6A of GSTR-9 and reconciliation b/w GSTR-9 and GSTR-3B.

The long pending demand of industry for negative values in Table 3 (Output Liability) of GSTR-3B is still pending.

1. The Government vide Notification No. 14/2022 – Central Tax dated 05th July, 2022 has notified few changes in Table 4 of Form GSTR-3B for enabling taxpayers to report correct information regarding ITC availed, ITC reversal and ineligible ITC in Table 4 of GSTR-3B. According to the changes, the net ITC is to be reported in Table 4(A) and ITC reversal, if any, is to be reported in Table 4(B) of GSTR-3B.

2.Currently in GSTR-3B, credit note (CN) is being auto-populated in Table 4B(2), as ITC reversal. Now in view of the said changes, the impact of credit notes are also to be accounted on net off basis in Table 4(A) of GSTR-3B only. Accordingly following changes have been made in the GST Portal from January-2023 period onwards and shall be applicable from tax period - January 2023’ onwards.

a. The impact of credit note & their amendments will now be auto-populated in Table 4(A) instead of Table 4(B) of GSTR-3B . In case the value of credit notes becomes higher than sum of invoices and debit notes put together, then the net ITC would become negative and the taxpayers will be allowed to report negative values in Table-4A. Also, taxpayers can now enter negative values in Table 4D(2) of GSTR-3B.

b. Consequent updates/ modification in the advisory, messages, instructions, and help-text in form GSTR-2B, without any structural changes in form GSTR-2B summary or tables have also been done in GSTR-2B.

c. The calculation logic of Comparison Report has now been changed accordingly.

3.The taxpayers are advised to go through instructions/help text carefully in GSTR-2B & System Generated GSTR-3B pdf before filing GSTR-3B.

GSTN has a change in the mechanism of auto-populating ITC effective Jan 2023.

Let's understand the Change?

Now GSTN will auto-populate ITC (net of credit notes) in Table 4(A) of GSTR-3B. That means, Net ITC available including amendments (Invoices + Debit Notes - Credit Notes) shall be auto-populated in Table 4(A). The said change is effective from Jan 2023. 

However earlier credit notes were being auto-populated separately as reversals in Table 4(B)(2). The same were not being adjusted from Table 4(A).

The said change has been done to keep in mind the numbers to be auto-populated in Table of 6A of GSTR-9 and reconciliation b/w GSTR-9 and GSTR-3B.

Old Method of Auto Population
[upto Dec 2022]

Table No. of GSTR-3B Reporting / Auto-population by GSTN

4(A)

ITC Available

 This is auto-populated from FORM GSTR-2B. Positive ITC values shall be reported in respective tables. Negative values, if any, shall not be reported and value shall be reported as zero. However, such negative values shall be considered as ITC reversal and would be reported in table 4B(2). Detail break-up in Section III above may be referred in this respect.

4(B)

ITC Reversed

 This is auto-populated from FORM GSTR-2B. This covers the following: a. Positive values of all credit notes, on which ITC is available. If this is negative, then credit may be reclaimed subject to reversal of the same on an earlier instance. b. Positive values of all credit notes, on which ITC is not available. c. In case there are net negative values in ITC available table 4A(1,3,4,5), then such negative values shall be considered in this table. Detail break-up in Section III above may be referred in this respect.

 

New Method of Auto Population
[from Jan 2023]

Table No. of GSTR-3B Reporting / Auto-population by GSTN 4(A) ITC Available This is auto-populated from FORM GSTR-2B. Ne.......
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Author:

TaxReply


Feb 18, 2023

Comments


I am suresh

I have need for the doubt rowing squad inspection for vehicle
how to the documents is here in the taxpayers maintained details.So I request you kindly persual
Thanking you
your report my email.
By: S.suresh
Feb 18, 2023


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