The Goods and Services Tax Network (GSTN) has recently issued an advisory to provide taxpayers with guidance on reporting their ITC Reversal opening balance. In this blog post, let’s dive into the advisory and its implications for taxpayers.
Key Highlights of the Advisory
Purpose of the Facility
The GSTN has provided this facility to aid taxpayers in reporting their ITC Reversal Balance that remains unclaimed.
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.
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.
Eligibility to Reclaim
Taxpayers should report only those ITC reversal balances that are legally eligible for re-claim. This means you shouldn’t include amounts that have already been claimed.
Limits on Amendments
The GSTN encourages thorough due diligence, as taxpayers can amend their ITC reversal opening balance only three times.
The credit of the reported balance
Whatever balance is reported or altered by taxpayers will be credited to the “Electronic Credit Reversal and Re-claimed Statement.” This is crucial because it will validate the taxpayer’s ITC Re-claimed amount in Tables 4A(5) and 4D(1) of Form GSTR-3B.
For more details you can refer Advisory :
https://www.gst.gov.in/newsandupdates/read/619
Conclusion:
The extension for reporting opening balances in ITC reversal comes as a welcome relief for businesses striving to meet the compliance standards. By utilizing this extension wisely, businesses can not only comply with regulatory requirements but also enhance their overall tax governance processes. Stay informed, stay compliant.
This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event, RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.
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Published on: January 4, 2024