Summary of Introduction of RCM Liability/ITC Statement

Government has Introduced new feature called RCM Liability/ITC Statement to help the taxpayer for accurately reporting of transactions under the RCM.This statement is designed to improve the accuracy and transparency of RCM Transactions. It does so by capturing the RCM liability reported in Table 3.1(d) of the GSTR-3B return and the related Input Tax credit claimed in Table 4A(2) and 4A(3) of the same return. This new statement will be available from August-2024 for monthly filers and for the July-september 2024period for those who filling Quarterly. Taxpayers can access this statement by following the navigation: Services>>>Ledger>>>RCM Liability/ITC Statement.

Key points of GST Advisory of Introduction of RCM Liability /ITC Statement

1. Reporting Opening Balance in RCM ITC Statement
2. Reconciliation till tax period to report Opening Balance

1. Reporting Opening Balance in RCM ITC Statement

• To report RCM ITC Opening balance on the portal, You need to follow this navigation:

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

• Taxpayer need to fill Positive Value as Opening Balance , if taxpayers have already paid excess RCM liability in 3.1(d) of GSTR-3B and he has not availed ITC of the same in Table 4(A)2 or 4(A)3 of the GSTR-3B Return.
• Taxpayer needs to fill negative value as Opening Balance, if taxpayers have claim excess RCM ITC through Table 4(A)2 or 4(A)3 of GSTR-3B and he has not paid corresponding liability by declaring the same in Table 3.1(d) of GSTR-3B.
• Taxpayer can claim the RCM ITC in Table 4A(5) of GSTR-3B, if the taxpayers has reversed the same in earlier tax periods through Table 4(B)2 of GSTR-3B. Taxpayer has to note that RCM ITC shall not be reclaimed through Table 4(A)2 and 4(A)3 of GSTR-3B.such RCM ITC reversal need not to be reported as RCM ITC Opening Balance.

2.Reconciliation till tax period to report Opening Balance

Monthly Return filers: Report the Opening balance considering RCM ITC till July -2024 return period.

Quarterly filers: Report the Opening balance up to Q1 of FY 2024-25, Considering RCM ITC till 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 rectify any errors committed while declaring the opening balance on or before 30-11-2024, he shall be provided three opportunities for the same.

This amendment facility shall be discontinued after 30-11-2024.

Download -GST Advisory on RCM Liability-ITC Statement