GST Safar with CA Bhavesh Jhalawadia

Reporting ITC Reversal Opening Balance- One More Opportunity for Taxpayer

Summary of GST Advisory for Reporting ITC Reversal Opening Balance

GST Advisory has been issued by government for Reporting ITC Reversal Opening Balance.The Government has previosusly issued a GST Advisory announcing the introduction of the electronic credit ledger and reclaimed statement on the GST Portal. This allows taxpayers to report their ITC reversal, including the opening balance up to the return period of July-2023. This new system is applicable from August-2023 onwards.

Extension of Due dates for Reporting Opening Balance
Now, the Taxpayers are being provided with one final opportunity to report their cumulative ITC reversal (ITC that has been reversed earlier and has not yet been reclaimed) as opening balance for “Electronic Credit Reversal and Re-claimed Statement”, if any, before hard locking the reversal and reclaim ledger. Please note the important dates to report opening balance are mentioned below.
The functionality to reporting the opening balance will be available from 15th September 2024 to 31st October 2024.
The amendments in declared opening balance will be available till 30th November, 2024.
Taxpayers having monthly filing frequency are required to report their opening balance considering the ITC reversal done till the return period of July 2023 only. As after this period balance is already available in ledger.
Quarterly taxpayers shall report their opening balance up to Q1 of the financial year 2023-24, considering the ITC reversal made till the April-June 2023 return period only. As after this period balance is already available in ledger.
It may be noted that soon system would not allow to re-claim of ITC in excess of the amount reversed earlier and the taxpayers will not be able to reclaim excess ITC compared to the balance available in their Electronic Credit Reversal and Re-claimed Statement. Therefore, it is advised to make use of this extended period to ensure that all relevant information is reported accurately.

GST Advisory on Electronic Credit Reversal and Re-claimed Statement: