GSTR-3B Changes: Negative Values can now be reported in Table 4 (Input Tax Credit)

In order to allow taxpayers to disclose accurate information regarding ITC claimed, ITC reversed, and ineligible ITC in Table 4 of Form GSTR-3B, the government issued Notification No. 14/2022 – Central Tax on July 5, 2022. The amendments mandate that the net ITC be reported in Table 4(A) of GSTR-3B and the ITC reversal, if any, be recorded in Table 4(B).

Credit note (CN) is now auto-populated in Table 4B(2) of GSTR-3B as an ITC reversal. The impact of credit notes must now be reported on a net off basis in Table 4(A) of GSTR-3B alone in light of the aforementioned modifications. As a result, the GST Portal has undergone the adjustments listed below, which will take effect from the January 2023 tax period onward.

The impact of credit notes and their changes will now be automatically filled out in Table 4(A) of GSTR-3B rather than Table 4(B). In the event that the value of credit notes exceeds the total of the invoices and debit notes combined, the net ITC will turn negative, and taxpayers may report negative values in Table-4A. Moreover, taxpayers can now input negative amounts in GSTR-3B Table 4D(2).

The advisory, messages, instructions, and help text in form GSTR-2B have all had subsequent updates or modifications, however the form’s summary or tables have not undergone any structural changes.

The Comparative Report’s calculation methodology has now been adjusted in line with this.

Before submitting GSTR-3B, taxpayers are recommended to carefully read the help text and instructions in the GSTR-2B & System Generated GSTR-3B pdf files.