GSTN introduces RCM Liability/ITC Statement on GST Portal

The Goods and Services Tax Network (GSTN) issued an Advisory relating to the Introduction of RCM Liability/ITC Statement dated 23.08.2024.

The Advisory read as follows:

To help taxpayers appropriately report Reverse Charge Mechanism (RCM) transactions, a new statement named “RCM Liability/ITC Statement” has been added to the GST Portal. This statement will enhance accuracy and transparency for RCM transactions by capturing the RCM liability shown in Table 3.1(d) of GSTR-3B and its corresponding ITC claimed in Table 4A(2) and 4A(3) of GSTR-3B for a return period.

This statement will apply to monthly filers beginning in August 2024, and quarterly filers beginning in the July-September-2024 period. The RCM Liability/ITC Statement can be accessed using the navigation: Services >> Ledger >> RCM Liability/ITC Statement.

Reporting Opening Balance in RCM ITC Statement

RCM ITC opening balance can be reported by following the below navigation:

• Login >> Report RCM ITC Opening Balance or Services >> Ledger >> RCM Liability/ITC Statement >> Report RCM ITC Opening Balance

If a taxpayer has already paid excess RCM liabilities by declaring them in Table 3.1(d) of GSTR-3B but has not claimed the corresponding ITC through Table 4(A)2 or 4(A)3 of GSTR-3B for any reason, the taxpayer must enter the positive value of the excess paid liability as RCM ITC as the opening balance in the RCM statement.

In case the taxpayer has already claimed excess RCM ITC through Table 4(A)2 or 4(A)3 of GSTR-3B but has not paid the corresponding liability by declaring it in Table 3.1(d) of GSTR-3B, the taxpayer must enter a negative value for such excess claimed ITC as RCM as the opening balance in the RCM Statement.

If a taxpayer is qualified to reclaim the RCM ITC that was reversed in previous tax periods using Table 4(B)2 of GSTR-3B, he can do so in Table 4A(5) of GSTR-3B. Please keep in mind that such RCM ITC cannot be reclaimed using GSTR-3B Tables 4(A)2 and 4(A)3. This RCM ITC reversal does not need to be recorded as the RCM ITC opening balance.

For Opening Balance – Reconcile till the Tax Period

Monthly Filers: Report the opening balance with RCM ITC until the July 2024 return period.

Quarterly Filers: Report the opening balance up to the first quarter of the financial year 2024-25, taking into account RCM ITC until the April-June 2024 return period.

Deadline to declare Opening Balance: Opening balance can be declared till 31.10.2024.

Amendments in Opening Balance: Taxpayers can correct any errors made while declaring the initial balance on or before November 30, 2024; they will have three opportunities.

This amendment facility shall be discontinued after 30.11.2024.