Amendment in GSTR-3B Table 4-Input Tax Credit

Sep 7, 2022

SUBJECT
Amendment in GSTR-3B Table 4-Input Tax Credit

Notification No
14/2022- Central Tax dated 05th July, 2022

Circular No
170/02/2022 dated 06th July, 2022

Contributed By

CA Tanya Singla
Assistant Manager – GST
tanya@mehragoelco.com

CA Manish Kumar D.
Manager
manishkumar@mehragoelco.com

In pursuance of Notification No-14/2022- Central Tax dated 05th July, 2022 read with Circular 170/02/2022 dated 06th July, 2022, there has been significant changes in Form GSTR-3B applicable with effect from the month of August, 2022.

One of such amendments include changes reporting in Table 4 of GSTR-3B, i.e., Input Tax Credit at the GST Portal are depicted in red font in table below:

NEW FORMAT w.e.f. August 2022
Tables 4(A)(1), (3), (4), (5) and 4(B)(2) are auto-drafted based on the values in GSTR-2B.

Details

Integrated Tax (₹)

Central Tax (₹)

State/UT Tax (₹)

CESS (₹)

(A) ITC Available (whether in full or part)

(2) Import of services

(3) Inward supplies liable to reverse charge (other than 1 & 2 above)

(4) Inward supplies from ISD

(5) All other ITC

(B) ITC Reversed

(1) As per rules 38, 42 and 43 of CGST Rules and sub-section (5) of section 17

(2) Others

(C) Net ITC Available (A) - (B)

(D) Other Details

(1) ITC reclaimed which was reversed under Table 4(B)(2) in earlier tax period

(2) Ineligible ITC under section 16(4) and ITC restricted due to PoS provisions

  • ITC in GSTR- 2B gets auto-populated in Table 4A of GSTR-3B, which will be inclusive of all eligible inward supplies inclusive of Blocked or ineligible ITC as well.
  • As per the New Format, it is mandatory to disclose the Blocked or Ineligible Credit. It shall be added in Table 4A & then shall be reversed in Table 4B. However, earlier the reporting of such ineligible credit was optional in Table 4D.
  • In Reclaimable reversed, that should be reported in Table 4(B)(2) in the month of reversal and later, when claimed in subsequent Months upon fulfillment of applicable conditions, shall be included in Table 4(A)(5) and also reported in Table 4(D)(1).
  • Further, Any ITC ineligible on account of different Place of Supply (POS) from the Place of Business (POB) or ITC being Time Barred shall be reported in Table 4(D)(2).
  • All non-reclaimable reversal of ITC needs to be reported in Table 4(B)(1).
  • Any ITC availed inadvertently in Table 4(A) in previous tax periods due to clerical mistakes or some other inadvertent mistake may be reversed in Table 4(B)(2).

How to report different nature of Input Tax Credit in New Format w.e.f. 01.09.2022

NEW FORMAT w.e.f. August 2022
Tables 4(A)(1), (3), (4), (5) and 4(B)(2) are auto-drafted based on the values in GSTR-2B.

Details

Integrated Tax (₹)

Central Tax (₹)

State/UT Tax (₹)

CESS (₹)

Remarks

Illustration

(A) ITC Available (whether in full or part)

(1) Import of goods

(2) Import of services

(3) Inward supplies liable to reverse charge (other than 1 & 2 above)

(4) Inward supplies from ISD

(5) All other ITC

1,40,000

1,50,000

1,50,000

-

Auto populated ITC as per GSTR-2B+ ITC reversed earlier, now claimed

  • ITC matched with Both Books & 2B + ITC extra reflected in 2B.
  • ITC Reflected in earlier Tax Period but reversed due to ITC not booked in BOA.
  • ITC reversed due to non-Payment within 180 days.

(40,000 added in given example)

(B) ITC Reversed

(1) As per rules 38, 42 and 43 of CGST Rules and sub-section (5) of section 17

20,000

Non- Reclaimable ever

  • Banking/NBFC companies: - 50% ITC ineligible u/s 17(4) read with Rule 38.
  • Reversal of I, IS/CG due to Exempted/ non-GST Supplies.
  • Reversal u/s 17(5) which included in above Table 4(A)(5)

(20,000 in given example)

(2) Others

-

30,000

30,000

Reclaimable Later, when applicable condition fulfilled

  • Reversal of ITC due to reflected in 2B but not Booked in BOA [Extra ITC in 2B include in 4(A)(5)].
  • ITC reversed due to non-Payment within 180 days.
  • Wrong ITC availed earlier.

This will be subsequently report in 4(D)(1) whenever Booked & included in 4(A)(5) in same tax period.

[30,000- Reversed due to 180 days provision/ ITC extra in 2B, not in Books].

(C) Net ITC Available (A) - (B)

1,20,000

1,20,000

1,20,000

-

(D) Other Details

For Disclosure

(1) ITC reclaimed which was reversed under Table 4(B)(2) in earlier tax period

40,000

out of Table 4(A)(5)

40,000- Reversed in previous Tax Period in 4(B)(2) due to not Booked, non-payment, now paid & claimed in 4(A)(5) except ITC wrongly availed earlier.

(2) Ineligible ITC under section 16(4) and ITC restricted due to POS provisions.

40,000

Lapsed & not included in above 4(A)(5), these are automatically denied in GSTR-2B

  • ITC reflected in 2B till specified period of next FY, i.e., upto November.
  • Also, ITC reflected in 2B but we are not eligible to Claim due to POS is difference with our Registered State.

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